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# Schrödinger Lifts 2026 Software And Drug Discovery Outlook After A Structure Therapeutics Milestone
- URL: https://www.bullished.co/schrodinger-lifts-2026-software-and-drug-discovery-outlook-after-a-structure-therapeutics-bfda0389/
- Published: 2026-11-04T23:13:42.000Z
- Updated: 2026-11-04T23:13:42.000Z
- Description: Third-quarter revenue rose 19% to $64.5 million, but the net loss widened to $37.7 million from $32.8 million.
- Author: Matteo Parrino
- Tags: Earnings, SDGR, Industry: Healthcare

[Schrödinger](https://www.bullished.co/tag/sdgr/), which sells physics-based molecular modeling software and runs drug discovery collaborations, raised its 2026 outlook for software contract value and drug discovery revenue, according to an [8-K filed Wednesday](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000075/sdgr-20261104.htm?ref=bullished.co). A milestone payment from Structure Therapeutics helped third-quarter revenue climb 19% to [$64.5 million](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000075/sdgr-20260930x8kxexx991.htm?ref=bullished.co), while the net loss widened.

## Guidance moves up on both lines

Annual contract value, the company's measure of yearly software billings, is now expected at [$222 million](https://www.businesswire.com/news/home/20261104302582/en/Schrdinger-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co) to $232 million for 2026, up from $218 million to $228 million. Schrödinger said that range represents 12-17% growth over 2025, against 10-15% previously.

Drug discovery revenue guidance rose to [$75 million](https://www.businesswire.com/news/home/20261104302582/en/Schrdinger-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co) to $85 million from $65 million to $75 million. The company also expects 2026 operating expenses to come in below 2025's level.

## A milestone carries the quarter

Drug discovery revenue was $24.2 million, against $13.0 million a year earlier, primarily because of the milestone payment from Structure Therapeutics, a company Schrödinger co-founded. The payment arrived in September and is tied to Structure's study of an oral obesity candidate.

Third-quarter annual contract value was $44.7 million, up 17%, and rose 24% excluding contribution revenue. Software revenue was $38.2 million, up 6%, with hosted software up 49% to $17.2 million, or 45% of software revenue. Software gross margin was 75%, down 2%, which the company tied to its shift toward hosted licenses.

CEO Ramy Farid said the software and drug discovery businesses "reinforce each other."

## Losses widen on equity markdowns

The net loss grew to $37.7 million from $32.8 million. Other expense of $11.4 million, primarily from changes in the market value of the company's equity positions, outweighed a 13% fall in operating expenses to $64.4 million.

Schrödinger held $373 million in cash, equivalents, restricted cash and marketable securities at the end of September.

## A corrected cancer-drug abstract

The [8-K](https://www.bullished.co/learn/8-k-items-explained/) also corrects an abstract the American Society of Hematology published Wednesday on SGR-1505, Schrödinger's MALT1 inhibitor. The abstract said a combination study in relapsed or refractory B cell malignancies was ongoing. The company said it has not initiated a combination study under its FDA-cleared protocol and, as previously disclosed, is exploring strategic opportunities to continue developing the drug.

Updated Phase 1 data for SGR-1505 will still be presented in an oral session at the ASH annual meeting in New Orleans.

The ASH meeting runs December 12-15, 2026, in New Orleans.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Schrodinger, Inc. (SDGR)](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000075/sdgr-20261104.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit sdgr-20260930x8kxexx991.htm — Schrodinger, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000075/sdgr-20260930x8kxexx991.htm?ref=bullished.co) — SEC EDGAR
- [Schrodinger Q3 2026 Earnings Call Transcript](https://www.benzinga.com/news/26/11/62896993/schrodinger-q3-2026-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [Schrödinger Reports Third Quarter 2026 Financial Results](https://www.businesswire.com/news/home/20261104302582/en/Schrdinger-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co) — businesswire.com

### More on Schrodinger

- [Schrodinger's AI Co-Scientist Bunsen Now Handles About 80% Of Its Internal Heavy Calculations](https://www.bullished.co/schrodingers-ai-co-scientist-bunsen-now-handles-about-80-of-its-internal-heavy-8bad4e05/)
- [Schrödinger Burned $96.5 Million In Nine Months While Its Contracted Backlog Shrank](https://www.bullished.co/schrodinger-burned-96-5-million-in-nine-months-while-its-contracted-backlog-shrank-7c00f0c5/)

[All Schrodinger (SDGR) coverage →](https://www.bullished.co/tag/sdgr/)