Schrodinger Inc (NASDAQ:SDGR) is one of the best long-term stocks to invest in according to Bill & Melinda Gates Foundation Trust. The stock is backed by 31 hedge funds. Schrodinger shares are up around 13% over the past month, and analysts see more upside in the stock.
On June 9, Schrodinger Inc (NASDAQ:SDGR) announced it had finalized a transition, separation, and release of claims agreement with Mannix Aklian, its former Chief Commercial Officer and Global Head of Software Sales and Marketing.
Schrodinger Inc is transitioning its platform to a hosted software licensing model, and the management has said good progress is being made on this front. In its Q1 2026 results, released on May 5, Schrodinger reported a 12% YoY increase in annual contract value (ACV) to $28.4 million. The company said the growth in contract value in that quarter was driven by new deployments and usage scale-ups.
Software revenue was down 21% as the transition to hosted software licensing accelerated. Drug discovery revenue more than doubled to $22.9 million due to continued progress in Schrodinger’s collaboration portfolio.
Looking ahead, the company anticipates Q2 2026 ACV in the range of $19 million to $23 million. For the full-year 2026, it expects ACV in the band of $218 million to $228 million, reflecting a growth of 10% to 15%. Schrodinger anticipates drug discovery revenue between $55 million and $65 million in 2026. The company said that Lilly’s planned acquisition of Ajax Therapeutics validates the strength of its platform.
Schrodinger Inc (NASDAQ:SDGR) provides software tools used in drug discovery and material science. These tools help pharmaceutical, biotech, chemicals, and energy companies to simulate and model the behavior of molecules. Schrodinger’s solutions help accelerate the design and development of new drugs and materials.
While we acknowledge the risk and potential of SDGR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SDGR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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