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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $54.30 $51.50

Revenue mln mln (8

Analysts

)

Q3 Net -$32.80

Loss mln

Q3 73.00%

Software

Gross

Margin

Q3 Gross $28.04

Profit mln

Q3 $74 mln

Operatin

g

Expenses

Q3 $40.90

Software mln

Revenue

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 ( SDGR ) is $28.00, about 28.6% above its November 4 closing price of $19.99

Press Release:

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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.)