NASDAQ · 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 2 AI consumers· 1 recurring
Per the valuechain.wiki graph, Schrodinger is directly linked to 2 companies (2 supply, 0 revenue relationships) and reaches 37 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 | -7.8 |
| Amazon | benef1 | +2.4 | -49.6 | +80.9 | +44.4 | +5.2 | +6.3 |
| SanDisk | benef2 | · | · | · | · | · | +707.1 |
| Seagate Technology | benef2 | +87.5 | -51.4 | +69.1 | +4.1 | +225.3 | +231.4 |
| Marvell | benef2 | +84.6 | -57.5 | +63.7 | +83.8 | -22.8 | +177.8 |
| Astera Labs | benef2 | · | · | · | · | +25.6 | +148.2 |
| Corning | benef2 | +5.9 | -11.6 | -1.2 | +60.6 | +87.8 | +118.8 |
| Ciena | benef2 | +45.6 | -33.8 | -11.7 | +88.4 | +175.8 | +97 |
| Credo Technology | benef2 | · | · | +46.3 | +245.2 | +114.1 | +79.2 |
| GE Vernova | benef2 | · | · | · | · | +99 | +67.3 |
| Caterpillar | benef2 | +16 | +18.6 | +25.9 | +24.7 | +60.3 | +67 |
| Wiwynn | benef2 | +24.7 | -22.3 | +206.4 | +3.5 | +64.4 | +45.1 |
| Jabil | benef2 | +66.4 | -2.5 | +87.4 | +13.3 | +58.7 | +44.9 |
| Arista Networks | benef2 | +97.9 | -15.6 | +94.1 | +87.7 | +18.5 | +42.7 |
| Alchip Technologies | benef2 | +14.3 | -8.7 | +365.1 | -18.9 | +0.8 | +34.7 |
| Quanta Computer | benef2 | +22.2 | -12.8 | +254.5 | +12.7 | +8.9 | +33.4 |
| Cummins | benef2 | -1.7 | +14.1 | +1.7 | +48.9 | +49.4 | +33.3 |
| Globalstar | benef2 | +241.2 | +14.7 | +45.9 | +6.7 | +96.6 | +31.2 |
| Eaton | benef2 | +46.7 | -7.2 | +56.2 | +39.5 | -2.8 | +28.6 |
| ABB | benef2 | +23.9 | +7.3 | +18.9 | +39 | +36.1 | +27.2 |
| Celestica | benef2 | +37.9 | +1.3 | +159.8 | +215.2 | +220.3 | +21.7 |
| Digital Realty | benef2 | +30.7 | -41 | +39.9 | +35.9 | -10.1 | +18.2 |
| Schneider Electric | benef2 | +25.9 | +1.6 | +25.8 | +36.1 | +0.5 | +13 |
| Foxconn (Hon Hai) | benef2 | -5.1 | +2.8 | +7.8 | +80.1 | +26.9 | +10.9 |
| Exelon | benef2 | +41.5 | +8.3 | -14 | +9.2 | +20 | +9.3 |
| Procter & Gamble | benef2 | +20.5 | -5 | -0.9 | +17.3 | -12.3 | +4.1 |
| Fabrinet | benef2 | +52.7 | +8.2 | +48.4 | +15.5 | +107.1 | +3.5 |
| Talen Energy | benef2 | · | · | · | +214.8 | +86.1 | +2.9 |
| Vistra | benef2 | +19.6 | +5.1 | +70.7 | +261.5 | +17.7 | -1.3 |
| IonQ | benef2 | · | -79.3 | +259.1 | +237.1 | +7.4 | -4.5 |
| Amorepacific | benef2 | -30.1 | -5.7 | -18.4 | +9.9 | +8.2 | -10.5 |
| Quantum Computing Inc | benef2 | -75.8 | -55.7 | -39.5 | +1712.7 | -38 | -15.6 |
| D-Wave Quantum | benef2 | · | -85.3 | -38.9 | +854.5 | +211.3 | -23.2 |
| Nike | benef2 | +18.7 | -29 | -6 | -29.1 | -13.8 | -29.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
A leading drug-discovery software platform fusing physics-based simulation with machine learning, where subscription software licensing (ACV $198M) is the predictable core and the in-house pipeline is a high-variance upside option. The credibility of 2025's +23% growth comes from large pharma making long-term bets on the platform, as in Novartis's $2.4B multi-target license. Risks are that in-house pipeline trial costs weigh on profit and keep the stock weak, and the compute cost of running large-scale simulation on AWS and NVIDIA GPUs. Upstream on the graph sit AWS (cloud) and NVIDIA (GPU acceleration), and this node is an application demand layer buying compute to sell predictive simulation.
Analysis generated from returns as of 2026-07-09Analyst ratings
Consensus: Buy 1 · Hold 2 · Sell 0 · Avg. target $17 · Price $16.49 (07-10) · Upside +3%
| 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