8-K: Twist Bioscience Reports Record FY26 Revenue, Guides for Continued Growth

Twist Bioscience announced record fiscal year 2026 revenue of $459.4 million, a 22% increase, and provided strong guidance for fiscal year 2027.

Summary

• Twist Bioscience reported record revenue of $459.4 million for fiscal year 2026, a 22% increase from $376.6 million in fiscal year 2025.
• Fourth quarter fiscal 2026 revenue reached a record $126.6 million, up 28% year-over-year, marking the 15th consecutive quarter of sequential growth.
• Gross margin improved to 52.4% in fiscal 2026 from 50.7% in fiscal 2025.
• The company reported a net loss of $130.2 million for fiscal 2026, an increase from $77.7 million in fiscal 2025.
• Adjusted EBITDA for fiscal 2026 was $(35.9) million, an improvement from $(46.9) million in fiscal 2025.
• Fourth quarter fiscal 2026 Adjusted EBITDA was positive at $2.2 million, compared to $(7.8) million in the prior year period.
• Fiscal 2027 revenue guidance is projected between $550 million and $560 million, representing 21% year-over-year growth at the midpoint.
• First quarter fiscal 2027 revenue guidance is set between $130 million and $132 million, indicating 26% year-over-year growth at the midpoint.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, with strong revenue growth, improving gross margins, and a positive adjusted EBITDA in the latest quarter, alongside optimistic future guidance.

Positives

• Record total revenues of $459.4 million in Fiscal 2026, a 22% increase over Fiscal 2025.
• Record fourth quarter revenue of $126.6 million, up 28% year-over-year, with 15 consecutive quarters of sequential growth.
• Improved gross margin to 52.4% in fiscal 2026 from 50.7% in fiscal 2025.
• Positive Adjusted EBITDA of $2.2 million in the fourth quarter of fiscal 2026, a significant improvement from $(7.8) million in the prior year period.
• Fiscal 2027 revenue guidance of $550M-$560M, projecting 21% year-over-year growth.
• First quarter fiscal 2027 revenue guidance of $130M-$132M, indicating 26% year-over-year growth.
• Shipped products to approximately 4,100 customers in fiscal 2026, up from 3,800 in fiscal 2025.
• Physically shipped approximately 1.3 million genes in fiscal 2026, compared to 938,000 in fiscal 2025.

Negatives

• Net loss for fiscal 2026 was $130.2 million, an increase from $77.7 million in fiscal 2025.
• Selling, general and administrative expenses increased to $301.2 million in fiscal 2026 from $247.0 million in fiscal 2025.
• Adjusted EBITDA for the full fiscal year 2026 was $(35.9) million, indicating continued losses on an adjusted basis.

Risks

• The ability to attract new customers and retain and grow sales from existing customers.
• The ability to sustain demand from customers pursuing AI-enabled drug discovery and the risk that such demand may not continue at current rates.
• The ability to expand manufacturing capacity.
• The ability of Twist to achieve sufficient revenue to achieve or maintain positive cash flow from operations or profitability in any given period.
• Risks and uncertainties of rapidly changing technologies and extensive competition in the life sciences industry.
• Dependence on one supplier for a critical component.
• Additional regulations that could increase costs and delay commercialization efforts.
• Changes in U.S. trade policies and other trade actions that could result in increased costs and supply chain disruptions.

Future Outlook

For fiscal year 2027, Twist Bioscience expects total revenue to be in the range of $550 million to $560 million, representing approximately 21% year-over-year growth at the midpoint. This guidance assumes $100 million in revenue for AI drug discovery and sequential growth across both DNA Synthesis and Protein Solutions and NGS Applications segments. Gross margin is projected to be approximately 52.5% to 53%, and the company anticipates positive Adjusted EBITDA. Capital expenditures are expected to be approximately $75 million as part of a two-year investment plan. For the first quarter of fiscal 2027, revenue is projected between $130 million and $132 million, with continued sequential growth.

Management Comments

• "Fiscal 2026 demonstrated what Twist can deliver: strong top line revenue growth, expanded gross margin and positive adjusted EBITDA in the fourth quarter, all while continuing to broaden our capabilities and strengthen our balance sheet."
• "We enter fiscal 2027 with a stronger business and the capital to invest in our next phase of growth."
• "AI is expanding what scientists can design, and personalized medicine is increasing the demand for unique molecules. Both play directly to our strength of customization at scale."
• "We are building the infrastructure for where this industry is going, investing in capacity, automation and new products that enable customers to do more with Twist."
• "Our ambition is to make Twist indispensable to the next generation of discovery, diagnostics and therapeutics."

Industry Context

StockSavvy.ai notes that Twist Bioscience's results align with broader industry trends in synthetic biology, particularly the increasing demand driven by AI in drug discovery and personalized medicine. The company's focus on customization at scale positions it to capitalize on these growth areas.

Comparison to Industry Standards

• The reported revenue growth of 22% for FY26 and projected 21% for FY27 is strong within the life sciences tools and synthetic biology sector, which can experience variable growth rates depending on R&D spending cycles and specific market demands.
• The improvement in gross margin to 52.4% is competitive, though specific benchmarks vary widely by sub-sector within life sciences. Companies like Thermo Fisher Scientific or Illumina, while larger and more diversified, often operate with gross margins in the 40-60% range depending on the product line.
• Achieving positive Adjusted EBITDA in the fourth quarter is a key milestone, indicating progress towards profitability. Many growth-oriented companies in this sector prioritize revenue expansion and market share over immediate profitability, making this a positive sign.

Legal Proceedings

• Litigation settlement costs, net of recoveries, were $7.205 million for the twelve months ended September 30, 2026.

Stakeholder Impact

• Shareholders: Positive impact from strong revenue growth, improving margins, and optimistic future guidance, offset by continued net losses.
• Employees: Potential for growth and investment in new products and capacity may lead to expanded opportunities.
• Customers: Continued expansion of capabilities and new product launches (e.g., Twist MRD Express) benefit customers by enabling more advanced research and development.
• Suppliers: Increased production volume may lead to greater demand for raw materials and components.

Next Steps

• Continue investing in capacity, automation, and new products.
• Enable customers to do more with Twist's offerings.
• Make Twist indispensable to the next generation of discovery, diagnostics, and therapeutics.
• File Annual Report on Form 10-K for fiscal year 2026 by November 16, 2026.

Key Dates

Recommendation

The company demonstrates strong revenue growth and operational improvements, including positive quarterly adjusted EBITDA and improving gross margins. However, the increasing net loss for the full year and the significant SG&A expenses, coupled with the inherent risks in the rapidly evolving life sciences sector, suggest a 'hold' rating. The optimistic guidance is a positive factor, but the path to consistent profitability requires further demonstration.

Keywords

DNA Synthesis, NGS Applications, Revenue Growth, Gross Margin, Adjusted EBITDA, Fiscal 2026 Results, Fiscal 2027 Guidance, Gene Synthesis