Earnings

Schrödinger Raises 2026 ACV and Drug Discovery Outlook

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter annual contract value reached $44.7 million, up 17%, and the company lifted full-year ACV to a $222 million–$232 million range.

Schrödinger, Inc. (SDGR), the computational drug-discovery software company, reported annual contract value of $44.7 million in the quarter ended September 30, 2026, a 17% increase from a year earlier, and raised its full-year 2026 ACV and drug discovery revenue outlook.

Trailing four-quarter ACV stood at $214 million. ACV excluding contribution rose 24%. The company now expects full-year ACV of $222 million to $232 million, or 12% to 17% growth over 2025, compared with the prior range of $218 million to $228 million, or 10% to 15% growth.

Chief executive Ramy Farid said the quarter delivered 17% ACV growth, $24 million of drug discovery revenue, and a higher full-year ACV and drug discovery outlook. He said the software and drug discovery businesses reinforce each other and that a feedback loop is building durable value.

Total revenue was $64.5 million, up 19%. Software revenue was $38.2 million, a 6% increase. Hosted software revenue was $17.2 million, a 49% increase, and accounted for 45% of total software revenue in the quarter and 32% on a trailing four-quarter basis. Software gross margin was 75%, a 2% decrease the company attributed to its ongoing transition to hosted licenses.

Drug discovery revenue was $24.2 million, compared with $13.0 million a year earlier, primarily due to recognition of a milestone payment from Structure Therapeutics, a company Schrödinger co-founded, associated with Structure’s Phase 1/2a study of ACCG-2671, an oral small molecule amylin candidate for obesity and metabolic diseases. Contribution revenue was $2.2 million.

Operating expenses were $64.4 million, a 13% decrease. Other expense, which includes changes in fair value of equity investments and interest income and expense, was $11.4 million, primarily due to changes in the market value of the company’s equity positions. Net loss was $37.7 million, or $0.50 a share, compared with a net loss of $32.8 million, or $0.45 a share, a year earlier. Adjusted EBITDA was a loss of $16.8 million.

Cash, cash equivalents, restricted cash and marketable securities were $373 million at quarter-end.

In September, Schrödinger announced a licensing and collaboration agreement with Tectora Therapeutics, a new biotechnology company it co-founded with New Enterprise Associates and RA Capital Management, focused on immunology and inflammation. In connection with Tectora’s $55 million Series A financing, Schrödinger contributed two early-stage small molecule programs, SDGR-4594 and SDGR-8139, in exchange for an equity stake and eligibility for future milestones and royalties. Takeda announced the Food and Drug Administration accepted its New Drug Application under Priority Review for zasocitinib, an oral TYK2 inhibitor for moderate-to-severe plaque psoriasis that was co-invented by Schrödinger and Nimbus and subsequently acquired by Takeda.

The company said updated Phase 1 data for SGR-1505 will be presented at the American Society of Hematology Annual Meeting December 12–15, 2026.

Drug discovery revenue is expected to range from $75 million to $85 million for the fiscal year ending December 31, 2026, compared with the prior expectation of $65 million to $75 million. Operating expenses are expected to be less than 2025.

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