Twist Bioscience Shares Down On Soft Forecast

What happened

Twist Bioscience shares fell 8.4% to $112.27 on Thursday after it forecast fiscal 2027 revenue of $550 million to $560 million. The midpoint implies 21% growth, below 2026’s 22% pace, while its gross-margin forecast was also below analyst estimates.

Confirmed

Global impact / market context

Investors had expected faster growth after the stock’s strong rise, according to Evercore ISI analysts. The slower outlook could pressure expectations for future revenue, while the below-estimate gross margin—which measures revenue left after direct production costs—raises questions about how profitable AI-related sales will be.

Analyst inference

The forecast midpoint was slightly above analysts’ $548.6 million estimate, but the growth rate would still slow. Analysts said guidance includes $100 million from AI drug discovery; without it, baseline growth would be 14%, suggesting that this business is important to the outlook.

Analyst inference

What to watch

1. Compare fiscal 2027 reported revenue with the $550 million to $560 million forecast range; results below it could weaken confidence in the company’s growth outlook. Analyst inference
2. Watch whether AI drug-discovery revenue approaches the included $100 million and whether management clarifies the order-growth outlook behind that contribution. Analyst inference
3. Track gross margin against the 52.5% to 53% forecast, since a lower result could indicate that production costs are absorbing more revenue than expected. Analyst inference

Evidence

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