Twist Bioscience (NASDAQ:TWST) Posts Earnings Results, Beats Estimates By $0.07 EPS

Twist Bioscience (NASDAQ:TWST) issued its quarterly earnings results on Thursday. The company reported ($0.32) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.39) by $0.07, FiscalAI reports. The business had revenue of $126.64 million for the quarter, compared to the consensus estimate of $123.55 million. Twist Bioscience had a negative net margin of 31.66% and a negative return on equity of 28.64%. The business’s revenue for the quarter 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 Trading Down 7.2%

TWST stock traded down $8.84 during midday trading on Thursday, hitting $113.75. 3,308,428 shares of the company’s stock were exchanged, compared to its average volume of 1,779,262. Twist Bioscience has a one year low of $23.30 and a one year high of $219.71. The stock’s fifty day moving average price is $150.90 and its 200-day moving average price is $92.37. The company has a market cap of $7.13 billion, a PE ratio of -51.24 and a beta of 2.25. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.38 and a current ratio of 2.67.

Key Stories Impacting Twist Bioscience

These are some of the TWST stories that stood out recently:

• 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

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on TWST shares. Barclays lifted their target price on Twist Bioscience from $112.00 to $215.00 and gave the company an “overweight” rating in a research note on Wednesday, October 7th. UBS Group assumed coverage on Twist Bioscience in a research note on Wednesday, September 9th. They set a “neutral” rating and a $144.00 price target on the stock. Jefferies Financial Group started coverage on Twist Bioscience in a research note on Thursday, October 8th. They set a “hold” rating and a $150.00 price target on the stock. Canaccord Genuity Group lifted their price objective on Twist Bioscience from $120.00 to $205.00 and gave the stock a “buy” rating in a research report on Monday, October 12th. Finally, Robert W. Baird lifted their price target on shares of Twist Bioscience from $113.00 to $115.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 4th. Seven research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Twist Bioscience presently has an average rating of “Hold” and an average price target of $153.00.

Insiders Place Their Bets

In related news, CEO Emily M. Leproust sold 356,546 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $157.99, for a total value of $56,330,702.54. Following the completion of the transaction, the chief executive officer directly owned 620,589 shares in the company, valued at approximately $98,046,856.11. The trade was a 36.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Paula Green sold 10,088 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 value of $1,905,421.44. Following the sale, the senior vice president directly owned 106,632 shares of the company’s stock, valued at approximately $20,140,652.16. The trade was a 8.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 495,279 shares of company stock worth $80,489,387. Company insiders own 3.08% of the company’s stock.

About Twist Bioscience

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.