Twist Bioscience (NASDAQ:TWST) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• Twist Bioscience reported a quarterly loss of $0.32 per share, beating the $0.39 loss analysts expected. Revenue rose 26.7% year over year to $126.64 million, topping estimates of $123.55 million.
• For fiscal 2027, the company forecast revenue of $550 million–$560 million and positive adjusted EBITDA for the full year. AI drug discovery revenue grew 175% to $59.1 million in fiscal 2026, with the company including $100 million from the business in its next-year outlook.
• Shares fell $11.76 to $110.83 after the results. Planned capital spending of about $75 million in fiscal 2027 is expected to support capacity expansion, but related costs may limit gross-margin improvement.

Twist Bioscience (NASDAQ:TWST - Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.32) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.39) by $0.07, FiscalAI reports. Twist Bioscience had a negative net margin of 31.66% and a negative return on equity of 28.64%. The firm had revenue of $126.64 million for the quarter, compared to the consensus estimate of $123.55 million. The business's revenue was up 26.7% on a year-over-year basis.

Here are the key takeaways from Twist Bioscience's conference call:

• Fiscal 2026 revenue grew 22% to $459.4 million, while fourth-quarter revenue rose 28% year over year to $126.6 million. Full-year gross margin improved to 52.4%, and Twist achieved positive adjusted EBITDA of $2.2 million in the fourth quarter.
• Twist guided to fiscal 2027 revenue of $550 million–$560 million, about 21% growth at the midpoint, and positive adjusted EBITDA for the full year. The company expects continued sequential growth in both DNA Synthesis and Protein Solutions and NGS.
• AI drug discovery revenue climbed 175% to $59.1 million in fiscal 2026; management expects triple-digit order growth in fiscal 2027 and sees further upside as customer programs expand. Its initial fiscal 2027 revenue outlook includes $100 million from AI drug discovery, which management said reflects programs it can forecast with high confidence.
• NGS revenue grew 24% in the fourth quarter, driven by diagnostics, and Twist expects its newly launched MRD Express product to support growth. Management also highlighted expanding demand for personalized tumor-informed testing and said MRD could contribute more revenue as adoption scales.
• Twist plans about $75 million in fiscal 2027 capital expenditures and roughly $150 million across fiscal 2027 and 2028 to expand capacity and automation. Management expects depreciation and costs from bringing new capacity online to temper gross-margin expansion in fiscal 2027, although it still expects modest improvement.

Twist Bioscience Stock Performance

Shares of TWST traded down $11.76 on Thursday, reaching $110.83. The company's stock had a trading volume of 3,044,742 shares, compared to its average volume of 1,777,465. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.67 and a quick ratio of 2.38. The stock has a market capitalization of $6.95 billion, a P/E ratio of -49.92 and a beta of 2.25. The stock's 50 day simple moving average is $150.90 and its two-hundred day simple moving average is $92.37. Twist Bioscience has a 12-month low of $23.30 and a 12-month high of $219.71.

Latest Twist Bioscience News

Investors following TWST have been watching these news items:

• Positive Sentiment: Fiscal Q4 revenue rose 26.7% year over year to $126.64 million, topping estimates, while the $0.32-per-share loss was narrower than consensus forecasts. Article
• Positive Sentiment: Management forecast Q1 fiscal 2027 revenue of $130 million–$132 million, above the $126.3 million consensus estimate. Full-year revenue guidance of $550 million–$560 million also modestly exceeded the $549 million consensus. Article
• Negative Sentiment: Despite those headline beats, coverage described the FY2027 outlook as underwhelming, suggesting it did not meet investor expectations. Continued losses and cost pressure may also have weighed on sentiment, helping explain the stock’s decline. Article

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Leerink Partners raised their target price on shares of Twist Bioscience from $160.00 to $190.00 and gave the stock an "outperform" rating in a report on Tuesday, September 29th. Weiss Ratings reissued a "sell (d-)" rating on shares of Twist Bioscience in a report on Monday, September 21st. Barclays increased their price target on Twist Bioscience from $112.00 to $215.00 and gave the company an "overweight" rating in a report on Wednesday, October 7th. Guggenheim lifted their price objective on Twist Bioscience from $107.00 to $212.00 and gave the stock a "buy" rating in a report on Thursday, October 1st. Finally, Jefferies Financial Group assumed coverage on Twist Bioscience in a report on Thursday, October 8th. They issued a "hold" rating and a $150.00 price objective for the company. Seven analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $153.00.

Insider Activity at Twist Bioscience

In other Twist Bioscience news, SVP Paula Green sold 1,007 shares of the stock in a transaction that occurred on Tuesday, November 3rd. The shares were sold at an average price of $135.40, for a total value of $136,347.80. Following the transaction, the senior vice president directly owned 105,625 shares in the company, valued at approximately $14,301,625. This trade represents a 0.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Robert Werner sold 1,482 shares of the stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $188.88, for a total transaction of $279,920.16. Following the completion of the transaction, the chief accounting officer owned 42,917 shares in the company, valued at $8,106,162.96. The trade was a 3.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 495,279 shares of company stock valued at $80,489,387 in the last three months. Corporate insiders own 3.08% of the company's stock.

Twist Bioscience Company Profile

Twist Bioscience Corporation is a biotechnology company that uses a silicon-based platform to manufacture synthetic DNA. Its technology supports the production of many DNA sequences in parallel for research and commercial applications. The company provides synthetic genes, gene fragments and oligonucleotide pools, as well as tools for next-generation sequencing, including target-enrichment products. Through its biopharma business, Twist also offers antibody discovery and related services to support the development of therapeutics.

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