The latest analyst coverage could presage a bad day for Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the two analysts covering Ginkgo Bioworks Holdings provided consensus estimates of US$83m revenue in 2026, which would reflect a concerning 38% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$106m in 2026. The consensus view seems to have become more pessimistic on Ginkgo Bioworks Holdings, noting the sizeable cut to revenue estimates in this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Ginkgo Bioworks Holdings' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 61% to the end of 2026. This tops off a historical decline of 17% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.9% annually. So while a broad number of companies are forecast to grow, unfortunately Ginkgo Bioworks Holdings is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Ginkgo Bioworks Holdings going forwards.

Looking to learn more? We have estimates for Ginkgo Bioworks Holdings from its two analysts out until 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.