Drug-discovery software · Physics-based AI simulation
Schrodinger
A leader in drug-discovery software that fuses physics-based molecular simulation with machine learning: subscription software licensing to pharma (software $200M, ACV $198M) is the stable core, while its own drug pipeline is the upside option. The quality of 2025 revenue of $256M (+23%) lies in large pharma adopting the platform — as in the Novartis multi-target license worth up to $2.4B ($150M upfront). But a cost base that runs simulation on AWS compute and NVIDIA GPUs, plus losses from the in-house pipeline, weigh on profit — so the watch point is the balance between software-subscription growth and pipeline milestones.
SDGR Updated Jul 12, 2026 3 AI consumers· 2 recurring
Per the valuechain.wiki graph, Schrodinger is directly linked to 2 companies (2 supply, 0 revenue relationships) and reaches 44 companies within two hops; the links are backed by 5 dated sources, 1 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · 2025 revenue $256M (+23%)
- Customer concentration · Software ACV $198M; pharma licensing.
- Segments · Software licensing ($200M) · Drug discovery/pipeline
Revenue from
- Pharma (physics-based drug discovery SW licensing) High confidence
Physics-based simulation software licensing to pharma (software $200M, ACV $198M).Confirms KO BioSpectator Published Nov 15, 2024: Novartis strikes $2.4B non-oncology drug discovery pact with SchrodingerConfirms EN Schrodinger Published Nov 12, 2024: Schrödinger Announces Multi-Target Collaboration and Expanded Software Licensing Agreement with Novartis - Drug discovery collaboration · in-house pipeline Medium confidence
Collaboration and own-pipeline milestones — large upside on success, but trial costs drive losses.
Pays to
- Amazon Medium confidence
Runs large-scale molecular simulation on AWS cloud — compute is the key upstream cost of revenue. - NVIDIA Medium confidence
NVIDIA for GPU-accelerated free-energy (FEP) calculations — the upstream that governs simulation accuracy and speed. - R&D & personnel (undisclosed) Low confidence
R&D and scientist headcount.
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Schrodinger | node | -56 | -46.3 | +91.5 | -46.1 | -7.3 | +12.4 |
| Amazon | benef1 | +2.4 | -49.6 | +80.9 | +44.4 | +5.2 | +12 |
| SanDisk | benef2 | · | · | · | · | · | +633 |
| Seagate Technology | benef2 | +87.5 | -51.4 | +69.1 | +4.1 | +225.3 | +209.1 |
| Marvell | benef2 | +84.6 | -57.5 | +63.7 | +83.8 | -22.8 | +163.4 |
| Wiwynn | benef2 | +24.7 | -22.3 | +206.4 | +3.5 | +64.4 | +120.2 |
| Astera Labs | benef2 | · | · | · | · | +25.6 | +86.6 |
| Corning | benef2 | +5.9 | -11.6 | -1.2 | +60.6 | +87.8 | +77.2 |
| Arista Networks | benef2 | +97.9 | -15.6 | +94.1 | +87.7 | +18.5 | +47.9 |
| Occidental Petroleum | benef2 | +67.7 | +119.1 | -4.1 | -15.9 | -14.9 | +47.4 |
| GE Vernova | benef2 | · | · | · | · | +99 | +44.4 |
| Caterpillar | benef2 | +16 | +18.6 | +25.9 | +24.7 | +60.3 | +42.9 |
| FedEx | benef2 | +0.7 | -31.6 | +49.1 | +13.5 | +5.1 | +39.6 |
| Ciena | benef2 | +45.6 | -33.8 | -11.7 | +88.4 | +175.8 | +37.3 |
| Jabil | benef2 | +66.4 | -2.5 | +87.4 | +13.3 | +58.7 | +36.3 |
| Alchip Technologies | benef2 | +14.3 | -8.7 | +365.1 | -18.9 | +0.8 | +36.1 |
| Globalstar | benef2 | +241.2 | +14.7 | +45.9 | +6.7 | +96.6 | +34.9 |
| Eaton | benef2 | +46.7 | -7.2 | +56.2 | +39.5 | -2.8 | +30.1 |
| Quanta Computer | benef2 | +22.2 | -12.8 | +254.5 | +12.7 | +8.9 | +28.5 |
| Digital Realty | benef2 | +30.7 | -41 | +39.9 | +35.9 | -10.1 | +23.4 |
| Schneider Electric | benef2 | +25.9 | +1.6 | +25.8 | +36.1 | +0.5 | +20.7 |
| Foxconn (Hon Hai) | benef2 | -5.1 | +2.8 | +7.8 | +80.1 | +26.9 | +19.6 |
| Credo Technology | benef2 | · | · | +46.3 | +245.2 | +114.1 | +18.5 |
| ABB | benef2 | +23.9 | +7.3 | +18.9 | +39 | +36.1 | +18.4 |
| Entergy | benef2 | +17.1 | +3.6 | -6.1 | +56 | +25.3 | +18.2 |
| Norfolk Southern | benef2 | +27.3 | -15.6 | -1.6 | +1.6 | +25.6 | +15.6 |
| Colgate-Palmolive Company | benef2 | +2.1 | -5.4 | +3.8 | +16.6 | -11 | +14.4 |
| Cummins | benef2 | -1.7 | +14.1 | +1.7 | +48.9 | +49.4 | +11 |
| United Parcel Service, Inc. | benef2 | +30 | -16.2 | -6 | -15.9 | -15.9 | +8 |
| Celestica | benef2 | +37.9 | +1.3 | +159.8 | +215.2 | +220.3 | +5.7 |
| Procter & Gamble | benef2 | +20.5 | -5 | -0.9 | +17.3 | -12.3 | +4.5 |
| Amorepacific | benef2 | -30.1 | -5.7 | -18.4 | +9.9 | +8.2 | +4.1 |
| Exelon | benef2 | +41.5 | +8.3 | -14 | +9.2 | +20 | +1.9 |
| Vistra | benef2 | +19.6 | +5.1 | +70.7 | +261.5 | +17.7 | -7.2 |
| Fabrinet | benef2 | +52.7 | +8.2 | +48.4 | +15.5 | +107.1 | -10.5 |
| IonQ | benef2 | · | -79.3 | +259.1 | +237.1 | +7.4 | -11.9 |
| Abbott Laboratories | benef2 | +30.5 | -20.7 | +2.3 | +4.8 | +12.9 | -11.9 |
| Talen Energy | benef2 | · | · | · | +214.8 | +86.1 | -15.4 |
| Quantum Computing Inc | benef2 | -75.8 | -55.7 | -39.5 | +1712.7 | -38 | -21.9 |
| D-Wave Quantum | benef2 | · | -85.3 | -38.9 | +854.5 | +211.3 | -36.6 |
| Nike | benef2 | +18.7 | -29 | -6 | -29.1 | -13.8 | -38.1 |
YTD as of 2026-09-04 · source: Yahoo Finance
Schrodinger operates across NASDAQ, Drug-discovery software, Physics-based AI simulation. It is +12.4% in 2026. The stock (+12.4%) and its supply side (avg +17.9%) are moving in step. Among connected nodes the furthest ahead is NVIDIA (+23.7%) and the furthest behind is Amazon (+12%). If chain logic explains the gap, the laggard is the next propagation candidate; if not, the link itself deserves a second look. But a cost base that runs simulation on AWS compute and NVIDIA GPUs, plus losses from the in-house pipeline, weigh on profit — so the watch point is the balance between software-subscription growth and pipeline milestones.
Analysis generated from returns as of 2026-09-04Analyst ratings
Consensus: Buy 1 · Hold 2 · Sell 0 · Avg. target $17 · Price $20.09 (09-04) · Upside -15%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| Morgan Stanley | Equal-Weight | $17 | May 14, 2026 | Report ↗ |
| KeyBanc Capital Markets | Overweight | $20 | Apr 8, 2026 | Report ↗ |
| UBS | Neutral | $13 | Mar 17, 2026 | Report ↗ |
Morgan Stanley, UBS and KeyBanc all trimmed price targets in H1 2026 on slower software monetization assumptions, though the street consensus remains Buy-tilted.
Analyses covering this node
- The application is still a story, the infrastructure demand is already measured: techbio as the first case Jun 23, 2026