Schrödinger (SDGR) has opened 2026 with Q1 revenue of US$58.6 million, a basic EPS loss of US$0.81 and a net loss of US$60.0 million, while on a trailing twelve month basis revenue stands at US$254.9 million with a basic EPS loss of US$1.40 and a net loss of US$103.5 million. Over recent quarters, revenue has moved between US$54.3 million and US$88.3 million, with quarterly basic EPS ranging from a profit of US$0.44 to a loss of US$0.82, which leaves investors weighing top line scale against persistent losses and pressured margins.

See our full analysis for Schrödinger.

With the latest figures on the table, the next step is to see how these results line up with the widely followed growth and risk narratives that have built up around Schrödinger over the past year.

Losses Stick Around On TTM Basis

• On a trailing twelve month basis, Schrödinger recorded US$254.9 million in revenue and a net loss of US$103.5 million, with basic EPS at a loss of US$1.40.
• Bulls point to revenue growth forecasts of about 13.3% a year as support for a long term growth story, yet the current trailing twelve month loss of US$103.5 million keeps the company firmly unprofitable.
  • Consensus narrative highlights growing demand for AI driven software and collaborations, while trailing twelve month losses and negative EPS show that higher spend is still outweighing that revenue base.
  • Supporters arguing for long term earnings potential need to balance those forecasts against the fact that analysts do not expect profitability over the next three years in the data provided.

Quarterly Swings Between Profit And Loss

• Over the last six reported quarters, basic EPS moved between a profit of US$0.44 in Q4 2025 and a loss of US$0.82 in Q1 2025, while net income ranged from a profit of US$32.5 million in Q4 2025 to a loss of US$60.0 million in Q1 2026.
• Bears focus on this pattern of inconsistent profitability, arguing that reliance on large pharma clients and ongoing high R&D spend keeps earnings volatile even when individual quarters, like Q4 2025, show a profit.
  • The return to a US$60.0 million loss in Q1 2026 after a US$32.5 million profit in Q4 2025 aligns with the cautious view that earnings remain heavily exposed to milestone timing and cost intensity.
  • This volatility fits the bearish concern that milestone and royalty payments can make reported profits lumpy, with no sustained trend toward positive EPS in the recent six quarter run.

Stay alert to how future quarters handle this earnings volatility, because it is central to the cautious view laid out by skeptics about Schrödinger's path to steadier profits. 🐻 Schrödinger Bear Case

Valuation Gap Versus Mixed Signals

• At a current share price of US$12.98, the stock screens on a P/S of 3.8x versus 2.3x for the US Healthcare Services industry and 1.5x for peers, while an internal DCF fair value of US$32.26 suggests a sizeable gap to that model, and analysts have an allowed consensus price target of US$21.13.
• Supporters argue the difference between the US$12.98 share price, the US$32.26 DCF fair value and the US$21.13 analyst target points to upside, yet the same data flags a higher P/S multiple and continued losses as clear constraints.
  • The revenue growth forecast of about 13.3% a year is higher than the 11.3% US market forecast, which helps explain why some bullish narratives focus on long term potential despite current unprofitability.
  • At the same time, losses having grown around 17.6% annually over five years and expectations of ongoing unprofitability mean any case built on that valuation gap has to factor in both the premium P/S and the lack of near term earnings.

If you want to see how bullish investors connect this valuation gap to their growth story in more detail, 🐂 Schrödinger Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Schrödinger on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Mixed signals on growth, losses and valuation can feel confusing, so review the numbers yourself, weigh the trade offs and check out the 2 key rewards and 1 important warning sign

See What Else Is Out There

Schrödinger's persistent trailing twelve month losses, uneven quarterly EPS and premium P/S multiple all highlight that earnings quality and risk remain key concerns.

If you want ideas where risk looks more contained and financial profiles aim for steadier performance, check out the 74 resilient stocks with low risk scores today and see how they compare.

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.