February 3, 2026
Finance

Twist Bioscience Raises Revenue Forecast After Strong Q1 Performance

Company reports robust sales growth and updates guidance, prompting analyst target price increases

Summary

Twist Bioscience Corporation reported a stronger-than-anticipated sales performance for the first quarter, achieving a 17% year-over-year increase in revenue. The company maintained its expected loss per share but exceeded sales guidance, leading to a raised fiscal 2026 revenue forecast. Analysts responded with higher target prices while maintaining positive ratings.

Key Points

Twist Bioscience exceeded its Q1 sales expectations with $103.70 million in revenue, a 17% increase year over year.
The company reported a first-quarter loss of $0.50 per share, aligned with Wall Street forecasts.
Fiscal 2026 sales guidance was raised from a range of $425 million-$435 million to $435 million-$440 million, exceeding consensus estimates.
Analysts from Barclays and Evercore ISI raised their price targets for Twist Bioscience while maintaining positive ratings on the stock.

Twist Bioscience Corporation (NASDAQ:TWST) revealed its earnings for the first quarter on Monday, showcasing sales results that outperformed market expectations. The company's revenue for the quarter reached $103.70 million, marking a 17% increase compared to the previous year and surpassing both consensus estimates and management guidance. While the firm reported a loss of $0.50 per share, this figure was in line with analyst predictions.

Management had initially provided a sales guidance range between $100 million and $101 million for the quarter. However, the actual results eclipsed this forecast, reaffirming the company’s momentum in growing its business. CEO and co-founder Emily Leproust highlighted the company’s strategic priorities moving forward, emphasizing a clear focus on profitability coupled with consistent revenue growth and maintaining gross margins above 50%. Additionally, the company intends to exercise fiscal discipline to support scalable and sustainable expansion. This includes extending customer reach, introducing new product offerings, and widening accessible market segments.

Reflecting this confidence, Twist Bioscience updated its fiscal 2026 sales guidance, raising the projection from a previous range of $425 million to $435 million up to a new range of $435 million to $440 million. This adjustment is slightly above analyst consensus estimates of approximately $431.39 million. The anticipated increase in revenue is expected to be balanced between the company’s two main product lines: DNA synthesis products and services (DSPS) and next-generation sequencing (NGS) markets.

Following the earnings announcement, the shares of Twist Bioscience closed at $46.81 on Monday, reflecting market reactions to the encouraging results and outlook. Analyst firms also updated their valuations and stance. Barclays’ Luke Sergott reiterated an Overweight rating on the stock and simultaneously upgraded the price target from $39 to $50, citing confidence in the company’s growth trajectory and financial discipline.

Similarly, Evercore ISI Group’s analyst Vijay Kumar maintained an Outperform rating on Twist Bioscience and elevated the price target from $42 to $52. These adjustments indicate optimism about the company’s capacity to deliver value to shareholders while navigating evolving market conditions.

In summary, Twist Bioscience’s first-quarter financial results and enhanced fiscal guidance signal a positive outlook for the company’s ongoing growth and operational efficiency. Analysts have responded by adjusting their target prices upward while maintaining constructive ratings, highlighting the market’s anticipation of continued progress.

Risks
  • The company reported a net loss per share of 50 cents, indicating ongoing profitability challenges.
  • Future revenue growth depends on execution of strategies such as customer expansion and new product launches, which carry inherent uncertainties.
  • Market acceptance of expanded product offerings in DNA synthesis and next-generation sequencing remains an area of uncertainty.
  • Guidance assumes balanced revenue growth across distinct business segments, which may be impacted by market dynamics.
Disclosure
Education only / not financial advice
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