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Schrodinger Inc (NASDAQ:SDGR) is among the best medical AI stocks to buy now. Schrodinger Inc (NASDAQ:SDGR)’s management presented at the 2026 KeyBanc Capital Markets Healthcare Forum on March 17. The presentation covered the company’s strategic direction, with the management discussing a shift to hosted software contracts and leveraging AI to expand the user base.

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The forum heard that Schrodinger aims to shift 75% of its software contracts to hosted models within three years. The 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 its platform. It says adding AI features will help enhance user efficiency.

For Q4 2025, Schrodinger delivered revenue of $87.2 million, which declined 1.2% YoY and beat the forecast of $83.65 million. Drug discovery revenue more than doubled YoY to $18 million, even as software revenue decreased 13% due to a shift in recognition.

Schrodinger is using AI to give biotech companies better software tools to speed up 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 arrangement involved Schrodinger integrating Lilly’s AI-driven 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 draw on many years of research data. With this arrangement, Schrodinger clients can now access TuneLab capabilities directly on the LiveDesign platform.

Schrodinger Inc (NASDAQ:SDGR) develops software and computational tools used in drug discovery and material science. Its solutions help pharmaceutical, biotech, and industrial companies to accelerate their programs and cut costs. Schrodinger is headquartered in New York but serves clients worldwide.

While we acknowledge the potential of SDGR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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