Schrödinger's third quarter revenue of $64.5M beat estimates as the company raised full-year 2026 guidance

Schrödinger reported third quarter 2026 results that significantly exceeded analyst expectations on both the top and bottom lines. Growth was primarily driven by a 17% increase in Annual Contract Value (ACV) and the recognition of a substantial milestone payment in the drug discovery segment. The company's strategic shift toward a hosted software model remains a key operational focus, with hosted revenue now representing 45% of total software sales.

Key Highlights

• Total revenue reached $64.5 million, a 19% year-over-year increase, fueled by $24.2 million in drug discovery revenue following a milestone payment from Structure Therapeutics.
• Software Annual Contract Value (ACV) grew 17% to $44.7 million, while ACV excluding contribution cohorts increased 24% over the same period last year.
• Management raised its full-year 2026 ACV guidance to a range of $222 million to $232 million and increased its drug discovery revenue outlook to $75 million - $85 million.