Schrödinger (SDGR) Bank of America Global Healthcare Conference 2026 summary

Financial performance and outlook

• Slightly exceeded Q1 guidance, with broad-based growth from both existing and new customers, and strong interest in new products.

• Operating expenses declined 4% quarter-over-quarter, supporting a path toward profitability over three years.

• Hosted revenue rose to 34% of total software revenue, up from 24% a year ago, with a target of 75% by 2028.

• Software ACV guidance for Q2 is $19M–$23M, representing 4%–27% growth year-over-year on a comparable basis.

• Three-year outlook includes 10%–15% annual software ACV growth and $150M in drug discovery revenue.

Business model transition and customer adoption

• Transition from on-premises to hosted solutions is progressing smoothly, with minimal customer resistance and increasing demand from large pharma.

• Hosted adoption is broad-based across large pharma, biotech, and material science, with new product sales often occurring off-cycle.

• New customer additions and improved funding environment are contributing to growth, reversing last year's customer losses.

• Customers are investing in efficiency, favoring computational solutions amid cautious spending.

• The company leverages its track record and ecosystem, with successful biotech exits reinforcing customer loyalty.

Product innovation and technology development

• Predictive toxicology product is being adopted earlier in drug discovery, with a growing panel of 100+ targets and plans to reach 150–200.

• FEP+ remains a core technology for affinity and solubility prediction, with ongoing advances in protein structure prediction and enterprise informatics (LiveDesign).

• LiveDesign Biologics launched for biologics R&D, with strong pilot interest from major pharma.

• Bunsen, a new agentic AI, is in early access and aims to multiply computational chemist productivity, aligning with commercial and scientific strategy.

• Internal use of new tools accelerates development and ensures commercial readiness before broader rollout.