Twist Bioscience (NASDAQ:TWST) Issues Earnings Results, Misses Expectations By $0.05 EPS

Twist Bioscience (NASDAQ:TWST) posted its quarterly earnings results on Monday. The company reported ($0.56) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.51) by ($0.05), FiscalAI reports. The business had revenue of $118.38 million during the quarter, compared to analyst estimates of $114.55 million. Twist Bioscience had a negative return on equity of 28.40% and a negative net margin of 31.66%.The business’s revenue for the quarter was up 23.2% on a year-over-year basis. During the same period last year, the company earned $0.33 EPS.

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

• Record revenue and raised guidance: Fiscal Q3 revenue rose 23% year over year to $118.4 million, marking 14 consecutive quarters of growth. Management raised fiscal 2026 revenue guidance to $456–$457 million and expects Q4 revenue of $123–$124 million, up approximately 25% year over year.
• AI-enabled drug discovery is accelerating: Twist expects to meet or exceed its target for triple-digit order growth in AI-enabled discovery in fiscal 2026 and believes it can deliver triple-digit growth again in fiscal 2027. Executives cited repeat orders, new customers, expanding modalities, and better visibility from larger, more collaborative customer programs.
• Strong therapeutics and NGS momentum: Therapeutics revenue grew 49% year over year, driven largely by pharma, biotech, and technology companies using AI-supported discovery, while NGS Applications revenue increased 12%. Management highlighted growing diagnostic demand, especially for molecular residual disease testing and proprietary enzyme-enabled workflows.
• Operational improvements are strengthening margins and product capabilities: Gross margin expanded to 52.8%, while the company reported major three-year reductions in manufacturing costs, waste, and turnaround time. Early access customers ordered more than 1,800 Complex Genes, and the offering has now been broadly launched.
• Profitability remains a near-term execution item: Adjusted EBITDA was negative $11.3 million in Q3, although management reiterated its expectation to reach adjusted EBITDA breakeven in Q4 and continue improving profitability in fiscal 2027. Cash and short-term investments declined to $166.8 million from $171.7 million at the end of the prior quarter.

Twist Bioscience Stock Down 1.6%

Shares of NASDAQ TWST opened at $99.44 on Wednesday. Twist Bioscience has a 12-month low of $23.30 and a 12-month high of $106.58. The firm’s 50-day simple moving average is $86.49 and its 200 day simple moving average is $62.98. The company has a quick ratio of 2.42, a current ratio of 2.70 and a debt-to-equity ratio of 0.03. The company has a market cap of $6.19 billion, a price-to-earnings ratio of -74.77 and a beta of 2.14.

Insider Transactions at Twist Bioscience

In other Twist Bioscience news, CEO Emily M. Leproust sold 18,880 shares of the business’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $95.00, for a total value of $1,793,600.00. Following the completion of the transaction, the chief executive officer directly owned 824,039 shares of the company’s stock, valued at approximately $78,283,705. The trade was a 2.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Adam Laponis sold 2,399 shares of the company’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $94.33, for a total transaction of $226,297.67. Following the transaction, the chief financial officer owned 110,276 shares in the company, valued at $10,402,335.08. The trade was a 2.13% 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. In the last ninety days, insiders have sold 50,211 shares of company stock worth $4,199,331. Corporate insiders own 3.08% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Royal Bank of Canada boosted its holdings in Twist Bioscience by 11.8% in the first quarter. Royal Bank of Canada now owns 40,373 shares of the company’s stock valued at $1,585,000 after acquiring an additional 4,254 shares during the last quarter. Benjamin Edwards Inc. raised its stake in shares of Twist Bioscience by 10.9% during the second quarter. Benjamin Edwards Inc. now owns 23,913 shares of the company’s stock worth $880,000 after buying an additional 2,343 shares during the last quarter. Norges Bank acquired a new position in Twist Bioscience in the second quarter valued at approximately $737,000. CIBC Bancorp USA Inc. bought a new position in Twist Bioscience in the third quarter valued at approximately $685,000. Finally, Odyssean LLC bought a new stake in shares of Twist Bioscience during the 4th quarter valued at $601,000.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on TWST shares. Guggenheim increased their target price on Twist Bioscience from $60.00 to $107.00 and gave the stock a “buy” rating in a report on Monday, June 29th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Twist Bioscience in a research note on Wednesday, June 24th. UBS Group set a $89.00 price target on Twist Bioscience in a research report on Monday, June 15th. TD Cowen reiterated a “buy” rating on shares of Twist Bioscience in a research note on Monday. Finally, Canaccord Genuity Group lifted their price objective on Twist Bioscience from $90.00 to $120.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Eight investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $95.30.

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.