Twist Bioscience Corporation (NASDAQ:TWST) released its financial results for the first quarter of fiscal 2026, posting a net loss of 50 cents per share, which met Wall Street analysts' expectations. The company reported total revenues of $103.7 million during the quarter, representing a 17% increase compared to the same period last year and exceeding both the consensus estimate of $102.72 million and management's previously provided guidance range of $100 million to $101 million.
Adjusted EBITDA losses improved notably to $13.4 million from a $16.3 million loss reported in the first quarter of the prior year. This reduction in operating losses highlights progressive cost management and operational efficiencies gained across the business segments.
Customer reach expanded as Twist shipped products to approximately 2,538 customers in Q1, up from around 2,376 customers a year earlier, signaling broader market penetration. In terms of product volume, the company delivered approximately 271,000 genes within the quarter, up from roughly 205,000 genes in the year-ago period. Notably, over 50,000 genes were manufactured specifically for data characterization purposes, indicating increased focus on product development and quality assurance.
Financial performance exhibited gross margin improvement as well, with margins rising to 52% for the quarter, compared to 48.3% during the first quarter of fiscal 2025. This enhanced margin contributes positively to the company’s journey toward profitability.
On the liquidity front, as of December 31, 2025, Twist Bioscience held about $198 million in cash, cash equivalents, and short-term investments, providing a solid financial foundation to support ongoing investments and operational needs.
Emily Leproust, the CEO and co-founder of Twist Bioscience, emphasized the company’s strategic priorities: "Our ongoing efforts are centered on achieving profitability through consistent revenue expansion, maintaining gross margins above 50%, and prudent spending. We continue to pursue scalable and sustainable growth by broadening our customer base, launching new products, and tapping into larger market opportunities."
Fiscal 2026 Guidance Update
Building on its quarterly results, Twist Bioscience revised its full-year fiscal 2026 revenue guidance upwards, now forecasting sales between $435 million and $440 million, improved from the prior range of $425 million to $435 million. This updated forecast surpasses the consensus analyst expectation of approximately $431.39 million.
The revenue uplift is expected to be broadly distributed across the company’s distinct product platforms, including DNA synthesis platforms (DSPS) and next-generation sequencing (NGS) applications. The anticipated gross margin for the full fiscal year is projected to remain above 52%, reflecting continued operational efficiencies and product mix optimization.
Furthermore, Twist Bioscience reaffirmed its goal to achieve adjusted EBITDA breakeven by the fourth quarter of fiscal 2026, a significant milestone that reflects progress toward sustainable profitability.
For the second quarter of fiscal 2026, the company expects revenues in the range of $107 million to $108 million, slightly above the consensus analyst estimate of $105.84 million, implying steady momentum in sales growth moving forward.
Analyst Commentary and Market Response
Market analysts have expressed positive views regarding Twist Bioscience’s trajectory. William Blair analysts underscored their confidence in the company’s long-term revenue growth prospects, noting aggressive investments aimed at penetrating multiple high-potential markets. This approach is believed to position the company for sustained growth exceeding 20% annually, alongside diverse opportunities for upside performance.
Analyst Matt Larew highlighted the company's moderate investment strategy in scaling manufacturing capacity and advancing toward adjusted EBITDA breakeven as sensible, which, if executed effectively, could enhance the stock’s appeal among investors.
Reflecting this optimism, William Blair has assigned an Outperform rating to Twist Bioscience’s shares.
Responding to the earnings release and guidance update, Twist Bioscience’s stock saw significant appreciation, advancing by 10.59% to trade at $45.42 as of the time reported on Monday, according to real-time market data provider Benzinga Pro.
Key Points
- First-quarter fiscal 2026 sales increased 17% year-over-year to $103.7 million, surpassing both consensus estimates and prior guidance.
- Adjusted EBITDA losses narrowed to $13.4 million from $16.3 million in the previous year, demonstrating improving operational efficiency.
- Customer base expanded to approximately 2,538 in the quarter, along with growth in gene shipments to approximately 271,000 units.
- Gross margin improved to 52%, up from 48.3% a year ago, indicating better cost management and product mix.
- Full-year sales outlook was raised to $435 million to $440 million, with adjusted EBITDA breakeven targeted in Q4 2026.
Risks and Uncertainties
- Despite narrowing losses, the company has yet to achieve profitability, with substantial adjusted EBITDA deficits persisting.
- Fiscal 2026 gross margin targets require sustained execution on cost control and product mix optimizations, which may face operational challenges.
- Revenue growth depends heavily on broad adoption across diverse markets, which carries inherent market penetration risks.
- Meeting the forecasted sales guidance, including second-quarter projections, will be critical to maintaining investor confidence.