Twist Bioscience Reports Fiscal Fourth Quarter and Full Year Fiscal 2026 Financial Results
Twist Bioscience Corp (TWST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Twist Bioscience Reports Fiscal Fourth Quarter and Full Year Fiscal 2026 Financial Results — Record revenue of $459.4 million in Fiscal 2026; Increase of 22% over $376.6 million in Fiscal 2025 — — Record revenue of $126.6 million in 4QFY26 ; Increase of approximately
How this was made
The 30-second read
Why it matters
The results show robust top‑line growth, margin expansion, and a move to positive adjusted EBITDA, which may re‑price the stock.
Market read
First‑hand earnings and guidance release provides fresh data for traders to adjust positions.
What to watch
Potential supply chain constraints or slower adoption of new AI‑driven services.
Record fiscal 2026 revenue of $459.4 million, up 22%; fourth-quarter revenue of $126.6 million, up 28%; fiscal 2027 revenue guidance of $550M to $560M
Revenue grew 22% for the full year and 28% in the fourth quarter, gross margin rose to 52.4% for the year, and adjusted EBITDA was positive in the fourth quarter at $2.2 million. The company still reported a full-year GAAP net loss of $130.2 million, and the release gives no quarter-on-quarter total revenue figure.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, fiscal 2026 (twelve months ended Sep 30, 2026)GAAP | $459.4M | – | 22% |
| Total revenues, Q4 FY2026 (three months ended Sep 30, 2026)GAAP | $126.6M | – | 28% |
| DSPS revenue, fiscal 2026 (twelve months)GAAP | $221.9M | – | 31.7% |
| NGS Applications revenue, fiscal 2026 (twelve months)GAAP | $237.5M | – | 14.1% |
| DSPS revenue, Q4 FY2026 (three months)GAAP | $61M | 8% | 33% |
| NGS Applications revenue, Q4 FY2026 (three months)GAAP | $65.7M | 6% | 24% |
| Cost of revenues, fiscal 2026 (twelve months)GAAP | $218.6M | – | – |
| Cost of revenues, Q4 FY2026 (three months)GAAP | $59.4M | – | – |
| Gross margin, fiscal 2026 (twelve months)GAAP | 52.4% | – | +1.7 margin points |
| Gross margin, Q4 FY2026 (three months)GAAP | 53.1% | – | – |
| Research and development expenses, fiscal 2026 (twelve months)GAAP | $71.8M | – | – |
| Research and development expenses, Q4 FY2026 (three months)GAAP | $17M | – | – |
| Selling, general and administrative expenses, fiscal 2026 (twelve months)GAAP | $301.2M | – | – |
| Selling, general and administrative expenses, Q4 FY2026 (three months)GAAP | $74.7M | – | – |
| Litigation settlement costs, net of recoveries, fiscal 2026 (twelve months, as printed in statement of operations)GAAP | $7.21M | – | – |
| Loss from operations, fiscal 2026 (twelve months, as printed in thousands)GAAP | −$139.5M | – | – |
| Loss from operations, Q4 FY2026 (three months, as printed in thousands)GAAP | −$24.41M | – | – |
| Gain on sale of business, fiscal 2026 (twelve months; prior-year column is fiscal 2025)GAAP | — | – | – |
| Interest income, fiscal 2026 (twelve months)GAAP | $8.80M | – | – |
| Interest income, Q4 FY2026 (three months)GAAP | $3.42M | – | – |
| Income tax expense line as printed, fiscal 2026 (twelve months)GAAP | −406K | – | – |
| Income tax expense line as printed, Q4 FY2026 (three months)GAAP | 201K | – | – |
| Net loss, fiscal 2026 (twelve months)GAAP | $130.2M | – | – |
| Net loss, Q4 FY2026 (three months)GAAP | $20.6M | – | – |
| Net loss per diluted share, fiscal 2026 (twelve months)GAAP | $(2.08) | – | – |
| Net loss per diluted share, Q4 FY2026 (three months)GAAP | $(0.32) | – | – |
| Adjusted EBITDA, fiscal 2026 (twelve months)non-GAAP | −$35.9M | – | – |
| Adjusted EBITDA, Q4 FY2026 (three months)non-GAAP | $2.2M | – | – |
| Cash, cash equivalents and short-term investments, as of Sep 30, 2026other | approximately $582 million | – | – |
| Total assets, as of Sep 30, 2026GAAP | $1.12B | – | – |
| Total liabilities, as of Sep 30, 2026GAAP | $233.8M | – | – |
| Total stockholders' equity, as of Sep 30, 2026GAAP | $888.0M | – | – |
| Customers shipped to, fiscal 2026 (approximately)other | approximately 4,100 customers | – | – |
| Genes physically shipped, fiscal 2026 (approximately)other | approximately 1.3 million genes | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| DSPS (DNA Synthesis and Protein Solutions), fiscal 2026 (twelve months)The release does not state a driver for this segment's revenue change. | $221.9M | – | 31.7% |
| NGS Applications, fiscal 2026 (twelve months)The release does not state a driver for this segment's revenue change. | $237.5M | – | 14.1% |
| DSPS (DNA Synthesis and Protein Solutions), Q4 FY2026 (three months)The release does not state a driver for this segment's revenue change. | $61M | 8% | 33% |
| NGS Applications, Q4 FY2026 (three months)The release does not state a driver for this segment's revenue change. | $65.7M | 6% | 24% |
FY2027 (full fiscal year) outlook
- Revenueapproximately $550 million to $560 million, growth of approximately 21% year over year at the midpoint
- Gross marginapproximately 52.5% to 53%
- NoteAdjusted EBITDA positive
- NoteCapital expenditures of approximately $75 million as part of our two-year investment plan, excluding landlord-funded tenant improvements
- NoteInitial full year revenue guidance assumes $100 million in revenue for AI drug discovery and sequential growth across both DNA Synthesis and Protein Solutions and NGS Applications
- NoteQ1 FY2027 total revenue of approximately $130 million to $132 million, growth of approximately 26% year over year at the midpoint and continued sequential growth
Capital returns
- The release reports no share repurchases or dividends for fiscal 2026.
- The company raised net proceeds of approximately $425 million through an equity offering and at-the-market sales (listed under Recent Highlights; period not further specified).
What drove it
- The CEO attributes the top-line growth to strong demand and states that AI and personalized medicine are increasing demand for customization at scale; this is management's explanation.
- Management states that the company is investing in capacity, automation and new products, and that fiscal 2027 guidance includes $100 million of revenue for AI drug discovery.
- Customers shipped to rose to approximately 4,100 in fiscal 2026 from approximately 3,800 in fiscal 2025, and genes physically shipped rose to approximately 1.3 million from approximately 938,000.
- The release states that gross margin improved 1.7 margin points for fiscal 2026. The release does not state the cause of this change.
- Management reports a 15th consecutive quarter of sequential growth in revenue.
- The release lists new products and partnerships: Lilly TuneLab antibody characterization services, Twist Express Screening Antibodies, and Twist MRD Express.
Concerns
- Full-year GAAP net loss of $130.2 million ($2.08 per diluted share) compared with $77.7 million ($1.30) in fiscal 2025.
- Selling, general and administrative expenses rose to $301.2 million from $247.0 million for fiscal 2026, while the release describes R&D as decreasing to $71.8 million from $80.3 million.
- Full-year loss from operations widened to $(139,455) thousand from $(136,259) thousand, and the prior year included a $48,847 thousand gain on sale of business.
- Fiscal 2027 guidance assumes $75 million of capital expenditures and a $100 million contribution from AI drug discovery; the release notes that demand from AI-enabled drug discovery customers may not continue at current rates.
- The forward-looking statements section lists dependence on one supplier for a critical component, changes in U.S. trade policies, and the ability to expand manufacturing capacity as risks.
- The release provides no quarter-on-quarter total revenue figure and no operating cash flow figure.
What to watch
- Delivery against fiscal 2027 revenue guidance of $550M to $560M and first quarter fiscal 2027 revenue guidance of $130M to $132M.
- Gross margin against the fiscal 2027 range of approximately 52.5% to 53%.
- Whether adjusted EBITDA stays positive, as guided for fiscal 2027.
- Execution of the approximately $75 million capital expenditure plan and the capacity expansion it supports.
- Whether the AI drug discovery contribution assumed in guidance ($100 million) materializes.
- The Form 10-K, which the release says is expected to be filed on November 16, 2026.
Balance sheet and cash flow
- Cash, cash equivalents and short-term investments were approximately $582 million as of September 30, 2026.
- Balance sheet at September 30, 2026: cash and cash equivalents $533,992 thousand (September 30, 2025: $183,049 thousand); short-term investments $47,915 thousand (2025: $49,385 thousand); inventories $46,411 thousand (2025: $28,309 thousand); property and equipment, net $122,323 thousand (2025: $102,283 thousand).
- Liability related to the sale of future revenue: $15,000 thousand at September 30, 2026 and $15,000 thousand at September 30, 2025.
- Operating lease liability, net of current portion: $86,537 thousand (2026) versus $61,750 thousand (2025).
- Operating cash flow and free cash flow are not presented in the release.
Analysis
Twist reported record full-year fiscal 2026 revenue of $459.4 million, up 22% from $376.6 million, and fourth-quarter revenue of $126.6 million, up 28% from $99.0 million. Both reported segments grew on a year-over-year basis: DSPS rose 31.7% to $221.9 million for the year and 33% to $61.0 million in the quarter, while NGS Applications rose 14.1% to $237.5 million for the year and 24% to $65.7 million in the quarter. In the fourth quarter, DSPS grew 8% and NGS grew 6% sequentially. The release does not give a driver for either segment's change beyond management's general comments on AI-enabled discovery and personalized medicine.
Gross margin was 52.4% for fiscal 2026, against 50.7% a year earlier, an improvement the release describes as 1.7 margin points. Fourth-quarter gross margin was 53.1% against 51.3% in the same quarter of fiscal 2025. Cost of revenues rose to $218.6 million for the year and $59.4 million for the quarter. Operating expenses moved differently: R&D fell to $71.8 million from $80.3 million for the year, while selling, general and administrative expenses rose to $301.2 million from $247.0 million. Fourth-quarter R&D was flat at $17.0 million and SG&A rose to $74.7 million from $63.8 million. The release also reports a $7,205 thousand litigation settlement cost in fiscal 2026.
Profitability is still negative on a GAAP basis. The full-year net loss was $130.2 million, or $2.08 per diluted share, compared with $77.7 million, or $1.30, in fiscal 2025. The fourth-quarter net loss narrowed to $20.6 million, or $0.32 per diluted share, from $27.1 million, or $0.45. Adjusted EBITDA, a non-GAAP measure, was $(35.9) million for the year against $(46.9) million, and $2.2 million in the fourth quarter against $(7.8) million. Interest income fell to $8,803 thousand for the year from $11,364 thousand, and the prior-year column includes a $48,847 thousand gain on sale of business that does not recur in fiscal 2026.
The balance sheet expanded. Management reports net proceeds of approximately $425 million from an equity offering and at-the-market sales, and cash, cash equivalents and short-term investments were approximately $582 million at September 30, 2026. Total assets rose to $1,121,808 thousand from $641,861 thousand and stockholders' equity to $888,016 thousand from $472,958 thousand. The release does not present operating or free cash flow.
Fiscal 2027 guidance calls for revenue of approximately $550 million to $560 million, about 21% growth at the midpoint, gross margin of approximately 52.5% to 53%, positive adjusted EBITDA, and capital expenditures of approximately $75 million excluding landlord-funded tenant improvements. The guidance includes $100 million of revenue for AI drug discovery. First-quarter fiscal 2027 revenue is guided to $130 million to $132 million, about 26% growth at the midpoint. No prior outlook was supplied, so the guidance cannot be compared with earlier expectations.
Management, verbatim
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,
Emily M. Leproust, Ph.D., CEO and co-founder
AI is expanding what scientists can design, and personalized medicine is increasing the demand for unique molecules.
Emily M. Leproust, Ph.D., CEO and co-founder
Not in the filing
stated, not guessed- Quarter-on-quarter change and prior-quarter (Q3 FY2026) total revenue, total gross margin, operating expenses, net loss and EPS are not printed.
- Year-over-year percentage changes for cost of revenues, gross margin in the quarter, R&D, SG&A, operating loss, net loss, EPS and adjusted EBITDA are not printed.
- Prior-year cash, cash equivalents and short-term investments combined figure is not printed.
- Operating cash flow, free cash flow, share repurchases and dividends (none reported) are not printed.
- Operating expense guidance and tax rate guidance for fiscal 2027 are not printed.
- Prior outlook for fiscal 2026 was not provided, so vs_prior_guidance is empty.
- Segment drivers for DSPS and NGS Applications are not stated in the release.
- Consensus estimates and share price reaction are not provided in the documents.
- Sign convention of the income tax expense line is printed without a clear sign in the statement of operations; values are copied as printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a primary SEC 8‑K disclosure of Twist Bioscience's FY2026 earnings and FY2027 outlook.
Ticker impact
Twist Bioscience reported FY2026 results and issued FY2027 revenue guidance of $550M-$560M, a 21% YoY increase.
potential upside as market prices in issued guidance
Revenue growth and improved margins, combined with guidance above prior year, suggest better earnings outlook.
Market effects
Strengthens the synthetic biology and biotech services sector outlook.
Positive for US biotech and healthcare innovation stocks.
Highlights growing demand for AI‑driven drug discovery worldwide.
Counterpoint
If guidance is overly optimistic, the stock could face pressure if execution falls short.
Key entities
- ExecutiveEmily M. Leproust
CEO and co‑founder of Twist Bioscience, quoted on growth strategy.
