Schrodinger, Inc. Q1 2026 Earnings Recap

Shares were essentially unchanged, rising 0.6% post-earnings, reflecting a mixed reception to Schrodinger’s first quarter 2026 results and guidance with steady execution but no clear upside catalyst.

Key Takeaways

• Annual Contract Value (ACV) grew 12% year-over-year to $28.4 million, driven by scale-up with top 20 pharma customers and new products.
• Total revenue reached $58.6 million, with software revenue at $35.6 million, including 34% from hosted licenses, up from 24% last year, reflecting an ongoing transition.
• Drug discovery revenue contributed $23 million, supported by collaborations and equity stakes such as the recent Lilly acquisition of Ajax Therapeutics.
• Management emphasized innovation, highlighting the upcoming Bunsen AI co-scientist launch to potentially transform molecular discovery workflows.
• Despite positive operational momentum, the market appears cautious amid macroeconomic uncertainty and no major beat or outlook raise, keeping the stock reaction muted.