Twist Bioscience (NASDAQ:TWST) Issues Quarterly Earnings Results, Misses Expectations By $0.17 EPS

Key Points

• Twist reported Q2 EPS of ($0.71), missing consensus by $0.17, but revenue beat at $110.7M, up about 19% year‑over‑year.
• The company saw strong product momentum—DNA synthesis & protein solutions +28% YoY and NGS +12% YoY—backed by partnerships (including Amazon Bio Discovery, MSK, Johns Hopkins) and management reiterated a goal of adjusted EBITDA breakeven in Q4 FY2026.
• Near‑term pressures remain: operating expenses rose to $95.8M, adjusted EBITDA was a $13.3M loss with a ~$17.1M securities‑settlement charge, cash fell to $171.7M, and insiders sold stock amid mixed analyst views (consensus: "Moderate Buy", PT ~$47.13).

Twist Bioscience (NASDAQ:TWST - Get Free Report) issued its quarterly earnings data on Monday. The company reported ($0.71) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.54) by ($0.17), Briefing.com reports. Twist Bioscience had a negative return on equity of 27.16% and a negative net margin of 19.56%.The company had revenue of $110.72 million for the quarter, compared to analysts' expectations of $107.64 million. Twist Bioscience's revenue for the quarter was up 19.3% on a year-over-year basis.

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

• Twist reported Q2 revenue of $110.7M (+19% YoY), 13th consecutive quarter of sequential revenue growth, gross margin of 51.6%, and reiterated the target to reach adjusted EBITDA breakeven in Q4 FY2026.
• DNA synthesis & protein solutions grew 28% YoY, driven by AI-enabled drug discovery demand and validated by a new wet-lab partnership with Amazon Bio Discovery and collaborations with MSK and Johns Hopkins.
• NGS applications revenue grew 12% YoY (9% sequentially) with particular strength in oncology diagnostics and MRD panels, and management expects NGS to drive H2 sequential growth and return to ~20% growth by Q4.
• Management is improving manufacturing acceptance rates (targeting ~99.5% of Clonal Genes and ~99.9% of all DNA products), a change expected to capture more orders, expand wallet share, and strengthen competitive differentiation.
• Operating expenses rose to $95.8M as the company invested in commercial and digital capabilities, adjusted EBITDA remained a $13.3M loss (albeit improved), a ~$17.1M securities settlement produced a $7.2M Q2 charge, and cash fell to $171.7M, indicating near-term cash and expense pressure.

Twist Bioscience Price Performance

NASDAQ TWST opened at $56.74 on Monday. The business's fifty day moving average price is $50.46 and its 200-day moving average price is $41.06. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.78 and a quick ratio of 3.37. The stock has a market capitalization of $3.48 billion, a price-to-earnings ratio of -44.76 and a beta of 2.22. Twist Bioscience has a 1-year low of $23.30 and a 1-year high of $66.06.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on TWST. Evercore increased their price target on shares of Twist Bioscience from $42.00 to $52.00 and gave the stock an "outperform" rating in a report on Tuesday, February 3rd. TD Cowen reissued a "buy" rating on shares of Twist Bioscience in a research note on Thursday, January 8th. Barclays boosted their price objective on shares of Twist Bioscience from $50.00 to $55.00 and gave the company an "overweight" rating in a research report on Tuesday, April 14th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Twist Bioscience in a report on Friday, March 27th. Finally, Guggenheim boosted their price target on Twist Bioscience from $50.00 to $55.00 and gave the company a "buy" rating in a report on Monday, March 30th. Seven analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $47.13.

Insider Buying and Selling

In related news, Director Robert Chess sold 10,000 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $47.00, for a total value of $470,000.00. Following the sale, the director owned 21,084 shares in the company, valued at approximately $990,948. The trade was a 32.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Robert F. Werner sold 7,000 shares of the firm's stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $45.65, for a total transaction of $319,550.00. Following the completion of the sale, the chief accounting officer directly owned 58,738 shares of the company's stock, valued at approximately $2,681,389.70. The trade was a 10.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 63,220 shares of company stock worth $3,265,601 in the last quarter. Company insiders own 3.08% of the company's stock.

Hedge Funds Weigh In On Twist Bioscience

A number of large investors have recently bought and sold shares of TWST. Stifel Financial Corp lifted its position in shares of Twist Bioscience by 3.6% during the fourth quarter. Stifel Financial Corp now owns 7,769 shares of the company's stock worth $246,000 after purchasing an additional 271 shares during the last quarter. California State Teachers Retirement System grew its stake in shares of Twist Bioscience by 0.8% during the second quarter. California State Teachers Retirement System now owns 54,187 shares of the company's stock worth $1,994,000 after acquiring an additional 442 shares during the last quarter. CANADA LIFE ASSURANCE Co increased its holdings in shares of Twist Bioscience by 3.4% during the third quarter. CANADA LIFE ASSURANCE Co now owns 20,485 shares of the company's stock valued at $553,000 after acquiring an additional 675 shares in the last quarter. Smartleaf Asset Management LLC raised its stake in Twist Bioscience by 83.1% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,955 shares of the company's stock worth $63,000 after acquiring an additional 887 shares during the last quarter. Finally, Quarry LP acquired a new stake in Twist Bioscience during the 3rd quarter worth about $28,000.

About Twist Bioscience

Twist Bioscience Corporation is a synthetic biology company specializing in the development and commercialization of DNA-based products and solutions. Founded in 2013 and headquartered in South San Francisco, California, the company has pioneered a proprietary silicon-based DNA synthesis platform designed for high-throughput production of synthetic genes and oligonucleotides. Twist leverages semiconductor manufacturing techniques to enable precise, scalable synthesis of DNA at speeds and volumes unattainable with traditional methods.

At the core of Twist's offering is its proprietary platform that automates the synthesis of custom DNA fragments, gene libraries, and long oligonucleotides.

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