Schrödinger (SDGR) Q2 2026 earnings summary

Executive summary

• Achieved strong momentum in Q2 2026 with 27% ACV growth year-over-year, total revenue of $58.9M (up 8%), and net income of $6.0M, reversing a net loss in Q2 2025.

• Launched early access for Bunsen, an AI co-scientist, expanding platform capabilities and user base, with strategic deployments at Bristol Myers Squibb and collaborations with Simcere Pharmaceuticals.

• Drug discovery revenue surged 65% to $23.0M, driven by a $10M milestone from Ajax Therapeutics and multiple collaborations.

• Advanced Predictive Toxicology and new products contributed to ACV growth and attracted extended funding.

• Significant other income realized from Eli Lilly’s acquisition of Ajax Therapeutics, including a $48.9M gain.

Financial highlights

• Q2 2026 ACV was $29.6M, up 27% year-over-year; trailing four-quarter ACV reached $208M.

• Total revenue for Q2 2026 was $58.9M (up 8% YoY); software revenue was $32.5M (down 10% YoY), hosted revenue at $15.2M (47% of software total), and drug discovery revenue was $23.0M (up 65% YoY).

• Operating expenses decreased 6% year-over-year to $74.0M.

• Net income was $6.0M, compared to a net loss of $43.2M in Q2 2025.

• Ended the quarter with $418.8M in cash and marketable securities.

Outlook and guidance

• Full-year 2026 ACV expected at $218M–$228M, representing 10%–15% growth over 2025.

• Drug discovery revenue guidance raised to $65M–$75M for 2026, reflecting milestone achievements.

• Q3 2026 ACV (excluding contribution) expected at $41M–$45M, up from $38.3M in Q3 2025.

• Operating expenses for 2026 projected to be lower than 2025.

• 2028 objectives include durable ACV growth of 10–15% annually, gross margin returning to high 70s, and positive adjusted EBITDA by year-end 2028.