Analysts Are Updating Their Schrödinger, Inc. (NASDAQ:SDGR) Estimates After Its Third-Quarter Results

As you might know, Schrödinger, Inc. (NASDAQ:SDGR) just kicked off its latest third-quarter results with some very strong numbers. Results overall were solid, with revenues arriving 9.5% better than analyst forecasts at US$54m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.45 per share, were 9.5% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Schrödinger's nine analysts is for revenues of US$304.1m in 2026. This reflects a notable 18% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 33% to US$1.59. Before this earnings announcement, the analysts had been modelling revenues of US$307.7m and losses of US$1.89 per share in 2026. Although the revenue estimates have not really changed Schrödinger'sfuture looks a little different to the past, with a cut to the loss per share forecasts in particular.

See our latest analysis for Schrödinger

There's been no major changes to the consensus price target of US$27.33, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Schrödinger analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$19.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Schrödinger'shistorical trends, as the 14% annualised revenue growth to the end of 2026 is roughly in line with the 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So although Schrödinger is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$27.33, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Schrödinger going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Schrödinger .

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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.