Schrödinger Inc (NASDAQ:ODSG) is among the best medical AI stocks to buy now. Schrodinger Inc (NASDAQ:SDGR) management was presented at the 2026 KeyBanc Capital Markets Healthcare Forum on March 17. The presentation covered the company’s strategic direction, with management discussing a shift toward hosted software contracts and leveraging AI to expand the user base.
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The forum heard that Schrodinger intends to move 75% of its software contracts to hosted models within three years. Management explained that the shift to hosted contracts is a response to customer demand for cloud-based solutions. At the same time, Schrodinger is working with Anthropic and other AI companies to integrate AI into their platform. It says adding AI features will help improve user efficiency.
For the fourth quarter of 2025, Schrodinger reported revenue of $87.2 million, which decreased 1.2% year-over-year and exceeded the forecast of $83.65 million. Drug discovery revenue more than doubled year over year to $18 million, even as software revenue declined 13% due to a shift in recognition.
Schrodinger is using AI to provide biotech companies with better software tools to accelerate drug discovery and reduce drug research costs. As part of this effort, Schrodinger announced on January 9 a partnership with Eli Lilly to offer an AI-powered biotech software platform. This deal involved Schrodinger integrating Lilly’s AI-powered TuneLab platform into its cloud-based LiveDesign platform.
TuneLab is used by biotech companies to develop drugs as it provides AI-powered drug discovery models that are based on many years of research data. With this agreement, Schrodinger customers can now access TuneLab’s capabilities directly on the LiveDesign platform.
Schrodinger Inc (NASDAQ:SDGR) develops software and computational tools used in drug discovery and materials science. Its solutions help pharmaceutical, biotechnology and industrial companies accelerate their programs and reduce costs. Schrodinger is headquartered in New York but serves clients around the world.
While we recognize SDGR’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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