Schrodinger, Inc. (SDGR) Reports Q3 Loss, Tops Revenue Estimates

Core Insights - Schrodinger, Inc. reported a quarterly loss of $0.45 per share, better than the Zacks Consensus Estimate of a loss of $0.75, representing an earnings surprise of +40.00% [1] - The company posted revenues of $54.32 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 8.68% and showing a year-over-year increase from $35.29 million [2] - Schrodinger shares have increased by approximately 3.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 15.1% [3] Financial Performance - Over the last four quarters, Schrodinger has surpassed consensus EPS estimates two times and topped revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $89.1 million, while for the current fiscal year, it is -$2.18 on revenues of $251.99 million [7] Industry Context - Schrodinger operates within the Zacks Medical Info Systems industry, which is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Schrodinger's stock may be influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with management's commentary on the earnings call expected to provide insights [3][4] - The estimate revisions trend for Schrodinger was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]