A Look At Schrödinger (NasdaqGS:SDGR) Valuation After Q1 Earnings And Hosted AI Software Push

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Schrödinger (SDGR) is back in focus after first quarter earnings. Revenue held near prior year levels, and sales, net loss and per share figures gave investors fresh data on the company’s current spending profile.

See our latest analysis for Schrödinger.

The stock has seen an 11.14% 1 month share price return and a 5.15% 7 day share price return. However, the year to date share price return shows a 28.42% decline and the 1 year total shareholder return reflects a 45.37% loss, indicating that momentum has been fading over a longer horizon.

If Schrödinger’s recent moves have you reassessing the space, this can be a good moment to scan for other opportunities in AI focused healthcare, starting with 35 healthcare AI stocks

With analysts seeing room between the current US$12.87 share price and their targets, and the business still reporting losses, the real question is whether Schrödinger is undervalued today or if the market is already pricing in future growth.

Most Popular Narrative: 40% Undervalued

With Schrödinger’s most followed narrative pointing to a fair value of $21.38 against a last close of $12.87, the gap in expectations is clear and centers on how future growth and margins could reshape the earnings profile.

Strong pipeline advancement and early clinical success, such as positive Phase I data for SGR-1505, positions the company to secure additional milestone payments, royalties, and out-licensing deals, creating potential for substantial long-term revenue growth and more predictable future cash flows.

Read the complete narrative.

Curious what kind of revenue climb and margin shift are baked into that view? The narrative leans on a specific growth pace, a profit swing, and a punchy future earnings multiple. The exact mix behind that $21.38 figure might surprise you.

Result: Fair Value of $21.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on software margins and biotech demand. Pressure from hosted revenue mix shifts or weaker client budgets could quickly challenge that 40% undervalued narrative.

Find out about the key risks to this Schrödinger narrative.

Another View: Sales Ratios Flash A Different Signal

The 40% undervalued fair value hinges on future earnings, but the current P/S ratio tells a tougher story. At about 3.7x sales versus a fair ratio of 1.9x and a peer average of 1.5x, the stock screens as expensive today. Which signal do you put more weight on?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NasdaqGS:SDGR P/S Ratio as at May 2026

Next Steps

Mixed messages on value and risk so far? Act while the data is fresh and weigh it against the company's 2 key rewards and 1 important warning sign

Looking for more investment ideas?

If Schrödinger has sharpened your focus, do not stop here. Use fresh data while it is top of mind and line up your next watchlist candidates.

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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.

Companies discussed in this article include SDGR.

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