Can Schrödinger (SDGR) Sustain Its AI Edge in Drug Discovery as Q3 Results Approach?

  • Schrödinger announced it will release its third quarter 2025 financial results on November 5, 2025, followed by a live webcast and conference call for investors.

  • The company has attracted increasing industry attention as a pioneer in applying artificial intelligence to accelerate drug discovery and reshape biotechnology innovation.

  • We’ll explore how recognition of Schrödinger’s AI leadership amid growing sector focus may influence its long-term investment outlook.

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To be a shareholder of Schrödinger, you need to believe the company’s AI-driven software can become essential to drug discovery, leading to scalable, recurring revenues and clinical milestones. The upcoming third quarter 2025 results announcement and investor call, while relevant for short-term sentiment, does not materially change the main near-term catalyst, new clinical data for SGR-1505, nor does it resolve the biggest risk of sluggish new client acquisition amid biotech sector headwinds.

The most closely related recent announcement is Schrödinger’s update on initial clinical results for SGR-1505, a MALT1 inhibitor, which showed early efficacy and received FDA Fast Track designation this June. This progress in the clinic positions SGR-1505 as a primary driver for milestone payments and licensing, supporting management’s focus on revenue growth from drug discovery and anchoring the short-term investment outlook.

However, investors should also be mindful that, in contrast to the excitement around new clinical milestones, ongoing challenges in expanding the customer base persist and…

Read the full narrative on Schrödinger (it’s free!)

Schrödinger’s narrative projects $396.6 million revenue and $34.8 million earnings by 2028. This requires 18.6% yearly revenue growth and a $216.1 million increase in earnings from the current level of -$181.3 million.

Uncover how Schrödinger’s forecasts yield a $27.30 fair value, a 21% upside to its current price.

SDGR Community Fair Values as at Oct 2025

Six independent valuations from the Simply Wall St Community place fair value for Schrödinger between US$27.00 and US$43.20 per share. While some see upside, many remain focused on the risk that slow new client acquisition could constrain long-term revenue growth and influence market sentiment ahead of earnings; explore the range of outlooks shaping this debate.

Explore 6 other fair value estimates on Schrödinger – why the stock might be worth as much as 92% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SDGR.

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