Twist Bioscience stock came into this earnings print already heated after a strong run over the past quarter. The market pushed the share price up another 10.4% to about US$101 by the close after Q3 numbers hit. That kind of one day move suggests emotion may be in the driver’s seat.

The key focus today is revenue momentum. Twist Bioscience reported Q3 revenue of US$118.4m and raised full year sales guidance to a range of US$456m to US$457m. At the same time the company is still reporting losses. The rest of this report considers whether that trade off justifies the rally.

Is Twist Bioscience a genuine bargain or just expensive revenue growth with ongoing losses and insider selling in the background? Compare the current share price against detailed cash flow assumptions in the valuation analysis for Twist Bioscience

Q3 2026 Earnings Summary

• Revenue, Q3 2026 vs. Q3 2025: US$118.4m vs. US$96.1m (revenue increased year on year)
• Net Income, Q3 2026 vs. Q3 2025: loss of US$35.1m vs. profit of US$20.4m (moved from profit to loss)
• Basic EPS, Q3 2026 vs. Q3 2025: loss of US$0.56 per share vs. earnings of US$0.34 per share (moved from earnings to loss)
• Gross Margin, Q3 2026 vs. Q2 2026: 52.8% vs. 51.6% (margin improved quarter on quarter)

Prefer clear visuals instead of another wall of earnings tables and raw figures? Get a full picture of Twist Bioscience with easy to read charts that highlight its valuation in our company report for Twist Bioscience.

Twist Bioscience’s Growth Story Meets Hard Milestones

Bulls argue Twist Bioscience is becoming core infrastructure for AI driven drug discovery and genomics, with recurring revenue and better margins as the payoff. Q3 adds concrete proof points. Revenue grew 23% to US$118.4m and management raised full year guidance to a range of US$456m to US$457m. That lines up with the claim of sustained demand rather than one off wins.

The thesis leans heavily on AI related customers and higher value applications. Therapeutics revenue of US$40.4m grew 49% and DNA Synthesis & Protein Solutions reached US$56.6m, up 39%, which supports the idea that AI enabled and complex sequence work is becoming a larger driver. Gross margin reached 52.8% and more than half of incremental revenue flowed through to gross profit, which is the type of operating milestone bulls have been looking for, even as the company still reports a net loss.

Access the earnings models and revenue timelines in the analyst estimates for Twist Bioscience to see where the consensus trajectory for Twist Bioscience holds together and where the street quietly expects the next major break in the story.

Twist Bioscience Bears Still Have Ammo After Q3

The core worry on Twist Bioscience is that high growth in AI focused DNA and protein work will not translate into real earnings because costs stay too high and customer concentration keeps revenue lumpy. Q3 does not put that fear to bed. Revenue of US$118.4m grew strongly and gross margin reached 52.8%, yet the company moved from profit a year ago to a net loss of US$35.1m. Basic EPS missed expectations at a loss of US$0.56 per share versus a loss of US$0.50 per share that analysts expected.

Bears also highlight execution and concentration risk. Management still targets adjusted EBITDA breakeven in Q4, but Q3 adjusted EBITDA loss was US$11.3m and required one off transition costs and planned OpEx cuts to keep that goal in play. Top 10 NGS customers representing 48% of NGS revenue keeps the volatility argument alive.

After a sharp swing from profit to loss and with profitability still not forecast soon, it is worth asking whether these issues are isolated or part of a broader pattern. Review the full risk scorecard that flags structural concerns and potential blind spots in our risk analysis for Twist Bioscience which shows 2 important warning signs.

Stay Ahead With Simply Wall St

If the sharp swing in Twist Bioscience between profit and loss has your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch how the story evolves after this Q3 move. Once you are invested, use the Portfolio Command Center to cut through market noise and keep on top of only the most important developments for your holdings. For a broader view, the Community helps you tap into shared insights and different investor angles around Twist Bioscience and related stocks. By surfacing potential catalysts and risks early, Simply Wall St can help you stay ahead of the market and act with more confidence.

Seeking Alternatives Beyond Twist Bioscience?

Fresh stock ideas can move fast. Some are already building momentum while others stay under the radar for now. Check these screens before the crowd catches up and get in early.

• Target rock solid balance sheets and stable fundamentals by scanning the curated list of solid balance sheet and fundamentals stocks (46 results) before the strongest balance driven stories start flying.
• Spot early breakout potential by filtering for 18 high quality undiscovered gems that still sit under most radars while their numbers are doing the quiet heavy lifting.
• Explore structural themes with staying power by focusing on 36 power grid technology and infrastructure stocks that could benefit if grid upgrades move from idea stage to execution across key markets.

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.