Schrödinger, Inc. (SDGR) Stock Price & How to Invest

Schrödinger, Inc. has been building molecular simulation software since 1990, and its core products (Maestro, Glide, FEP+) predict how a candidate molecule will bind to a protein target before anyone synthesises it. Pharmaceutical and materials science customers license the platform, which produced ~$32.5 million of software revenue in the June 2026 quarter. The company also runs a second business that most software vendors do not: it uses its own platform to design drugs, then monetises them through collaborations, spin-outs and equity stakes rather than selling them itself. Eli Lilly's acquisition of Ajax Therapeutics, a company Schrödinger co-founded, for up to ~$2.3 billion produced a ~$45.9 million mark-up on Schrödinger's holding plus a ~$10 million milestone in Q2 2026. In September 2026 the same playbook repeated with Tectora Therapeutics, formed alongside New Enterprise Associates and RA Capital with a ~$55 million Series A, into which Schrödinger contributed two early-stage immunology programs for equity, milestones and royalties.

The investment picture splits along those two lines and they are pulling in opposite directions. Software, the part that should be predictable, has weakened: net dollar retention fell to ~100% in 2026 from ~113% in 2025, the count of high-value commercial customers slipped from 29 to 27, and Q2 software revenue declined ~10% year over year, which management attributes partly to an accelerated shift toward hosted licensing that spreads recognition over time. Drug discovery revenue more than offset it (~$23.0 million in Q2 versus ~$13.9 million a year earlier), but that line is lumpy by construction since it depends on milestones landing. Meanwhile the proprietary clinical pipeline has shrunk rather than grown: SGR-2921 was terminated after two patient deaths in a Phase 1 AML trial, and the remaining two assets, SGR-1505 and SGR-3515, are being shopped for partners instead of funded alone. Shares roughly tripled from a March low near ~$10.95 to a 52-week high of ~$30.41 on 17 September 2026, with the sharpest leg coming in a single week on broad enthusiasm for AI-assisted drug discovery rather than a company-specific disclosure.

The core software business is decelerating at precisely the moment the stock is being repriced for acceleration, and net dollar retention of ~100% means the installed base is no longer expanding on its own. General-purpose AI models and cheaper machine-learning tooling create genuine pricing pressure on specialised computational chemistry licences, a risk management has not quantified. On the therapeutics side, the pipeline shrank to two clinical assets after the SGR-2921 deaths, and both survivors now depend on finding a partner, which removes a large piece of the optionality investors once paid for. Drug discovery revenue is milestone-driven and can fall sharply in any quarter where nothing triggers, while equity-stake gains are non-cash until an acquirer appears. With roughly ~7x trailing revenue on an enterprise value basis and a stock that nearly tripled off its March low, a single guidance cut or a lost large customer could unwind a meaningful share of the move.

7 analysts publish price targets on SDGR, averaging $21.43 against a $30.24 price as of September 2026, or -29.1%. The published targets run from $17.00 to $30.00, a moderate spread, and the ratings split 5 buy, 2 hold, 0 sell. Over the last six months there have been 0 raises and 2 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full SDGR forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Schrödinger, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Bunsen and the agentic AI product cycle. Schrödinger launched early access to Bunsen, an agentic AI co-scientist that chains its physics engines into large-scale discovery workflows, with NVIDIA and Google Cloud supplying compute and the BioNeMo Agent Toolkit. The most optimistic published target, $30.00, assumes this works close to its best case.

The case against. The core software business is decelerating at precisely the moment the stock is being repriced for acceleration, and net dollar retention of ~100% means the installed base is no longer expanding on its own. The most pessimistic target, $17.00, is roughly what SDGR is worth if this bites instead.

Read the full bull and bear case on SDGR, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Schrödinger, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$260 million
• Q2 2026 revenue: ~$58.9 million, up ~8% year over year
• Software revenue (Q2 2026): ~$32.5 million, down ~10%
• Cash and marketable securities: ~$418.8 million
• Market capitalisation: ~$2.3 billion at ~$30 a share
• Enterprise value / TTM revenue: ~7x

Full-year 2025 revenue was ~$256 million, up ~23%, so the trailing-twelve-month figure of roughly ~$260 million represents near-flat growth over the last four quarters even as ACV climbed. GAAP profitability is not a useful signal here: quarterly net income swings between a ~$43.2 million loss and a ~$6.0 million profit depending on how the equity stakes are marked, while adjusted EBITDA ran at about negative $114.9 million for 2025. Backing out the cash pile leaves roughly ~$1.9 billion of enterprise value, which the market is applying to a software franchise that generated ~$200 million in 2025 and shrank last quarter.

If you want SDGR exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

Other names that sit close to SDGR: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get SDGR exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (ARKG), which spreads the position across many companies. Or build it into a focused thematic portfolio, so SDGR sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where SDGR fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

A genuine computational chemistry franchise with a decelerating core, an unusual portfolio of biotech equity stakes, and a valuation that has run well ahead of both.

Whether SDGR is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is SDGR a buy or a sell?, and where the stock could go from here in the SDGR stock forecast.

For income investors, whether SDGR pays a dividend and how the payout looks is covered in does SDGR pay a dividend? And to weigh SDGR against a peer, read the full side-by-side comparisons: SDGR vs RXRX and SDGR vs TEM.