Twist Bioscience Shares Fall After Weaker-Than-Expected Revenue Outlook

what happened

Twist Bioscience stock dropped 8.4% to $112.27 on Thursday, even though it has more than tripled so far this year. The company expects fiscal 2027 revenue of $550 million to $560 million, roughly 21% growth at the midpoint. The range sits slightly above the Wall Street consensus of $548.6 million, yet the implied pace would be slower than the 22% recorded in 2026.

According to Dow Jones Newswires, Evercore ISI analysts said investors had been hoping for faster growth after the recent rally. Their calculation excludes $100 million tied to AI drug discovery, leaving baseline growth at 14%. The 2027 gross margin forecast of 52.5% to 53% also came in below estimates, raising doubts about profitability in the AI business.

Fourth-quarter revenue climbed 28% to $126.6 million, ahead of the $123.5 million analyst consensus according to FactSet. The company posted a quarterly loss of $20.6 million, or 32 cents per share, versus a loss of $27.1 million, or 45 cents, a year earlier.

why it matters

The market reaction focuses less on the quarter itself than on the gap between expectations and the outlook. After a strong run-up, a slowdown in growth forecasts tends to hit high-valuation growth stocks hardest, and the margin question adds pressure on the AI story.

market impact

Twist Bioscience shares: a weak growth and margin outlook pressures the stock

• ▼Twist Bioscience shares pressure down — the outlook implies slower growth and a lower margin than analysts had expected

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