• Schrödinger, Inc. reported full-year 2025 results, with sales of US$56.37 million and total revenue of US$255.87 million, while reducing its net loss to US$103.27 million and basic loss per share from continuing operations to US$1.41.
• The combination of strong revenue growth and a substantially smaller loss suggests the company is scaling its platform while exercising tighter cost control.
• We’ll now examine how this sharp revenue increase and narrower loss shape Schrödinger’s existing investment narrative and future expectations.

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Schrödinger Investment Narrative Recap

To own Schrödinger, you need to believe its physics-based and AI tools can become core infrastructure for drug discovery, eventually justifying today’s losses. The 2025 results, with revenue up to US$255.87 million and a sharply reduced net loss, support the idea that the business can grow while tightening costs. However, the most important near term catalyst remains progress on high value collaborations, and the biggest risk is still the company’s dependence on milestone and royalty revenue, which this update does not materially change.

Among recent announcements, the January 2026 collaboration with Lilly’s TuneLab stands out as most relevant. It reinforces the role of Schrödinger’s LiveDesign and AI capabilities with a major pharma partner, tying directly into the catalyst of expanding large scale collaborations. When viewed alongside stronger 2025 revenue, this agreement may strengthen confidence that the software platform is gaining depth within key accounts even as questions remain around profitability and margin pressure.

Yet, against this improving top line story, investors should be aware of how continued losses and reliance on milestone payments could still...

Schrödinger's narrative projects $396.6 million revenue and $34.8 million earnings by 2028.

Uncover how Schrödinger's forecasts yield a $27.30 fair value, a 126% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were already assuming about US$358.7 million of revenue and US$31.4 million of earnings by 2028, yet they still framed the story far more cautiously than consensus, highlighting ongoing margin pressure and dependence on big pharma contracts as core risks that could look different in light of Schrödinger’s latest 2025 results.

Explore 5 other fair value estimates on Schrödinger - why the stock might be worth just $27.30!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Schrödinger research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Schrödinger research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Schrödinger's overall financial health at a glance.

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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.