Schrödinger Q3 revenue beats estimates on demand for its computational platform

Overview

• Schrödinger Q3 2025 revenue rises 54% yr/yr, beating analyst expectations

• Software revenue grows 28% yr/yr, reflecting demand for computational platform

• Company lowers software revenue growth guidance, citing timing of pharma scale-up

Outlook

• Schrödinger lowers 2025 software revenue growth guidance to 8%-13%

• Company raises 2025 drug discovery revenue forecast to $49 mln-$52 mln

• Schrödinger expects 2025 software gross margin of 73%-75%

Result Drivers

• SOFTWARE DEMAND - Software revenue grew 28% due to increased demand for Schrödinger's computational platform

• DRUG DISCOVERY REVENUE - Drug discovery revenue rose significantly due to upfront payments from ongoing collaborations

• GUIDANCE ADJUSTMENT - Co lowered software revenue growth guidance due to timing of pharma scale-up opportunities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Schrodinger Inc is $28.00, about 28.6% above its November 4 closing price of $19.99

Press Release: ID:nBw1jC2Qga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)