Twist Bioscience Posts 12th Straight Quarter of Growth, Fueled by AI-Driven Biotech Demand
Twist Bioscience (NASDAQ: TWST) kicked off its fiscal 2026 with robust first-quarter earnings, underscoring a sustained trajectory of growth and operational discipline. The company notched its twelfth consecutive quarter of revenue expansion, with executives pointing to the burgeoning intersection of artificial intelligence and biotechnology as a key catalyst.
Revenue for the quarter reached $103.7 million, a 17% increase from the prior year. Gross margin impressed at 52.0%, surpassing internal expectations. While operating expenses rose to support commercial and digital investments, the adjusted EBITDA loss narrowed to $13.4 million, improving by $2.8 million year-over-year. The company ended the quarter with a solid cash position of $197.9 million.
The earnings call narrative was dominated by the company's strategic positioning within the AI-enabled therapeutics discovery landscape. CEO Dr. Emily Leproust reported that orders specifically tied to AI discovery exceeded $25 million in fiscal 2025, with momentum carrying into the new year. "We're seeing customers with prior large orders return with additional ones," Leproust noted, adding that Twist is attracting more large pharmaceutical firms and well-funded startups.
President and COO Dr. Patrick Finn detailed how Twist's platform has evolved from DNA synthesis into a broader suite of protein and antibody services. This expansion aims to address a critical bottleneck in AI-driven biology: the need for vast amounts of high-quality experimental data. "The constraint shifts to the speed and economics of data generation," Finn stated, positioning Twist to move clients "from design to data in days, not months."
Revenue from DNA synthesis and protein solutions (DSPS) surged 27% to $51.1 million, directly fueled by AI-related projects. Next-generation sequencing (NGS) revenue was $52.6 million, with management noting a resolved issue concerning a single large customer and forecasting strong sequential growth ahead.
Bolstered by this performance, Twist raised its full-year revenue guidance to a range of $435 million to $440 million. Crucially, management reaffirmed its target of achieving adjusted EBITDA breakeven in the fourth quarter of fiscal 2026, a milestone closely watched by investors. CFO Adam Laponis explained that the decision to maintain annual gross margin guidance above 52% reflects a strategic choice to prioritize top-line growth over near-term margin maximization.
The company plans to host an Investor Day in May to elaborate on its long-term roadmap as it looks beyond the breakeven target.
Market Voices: Analyst & Investor Reactions
Dr. Anya Sharma, Biotech Equity Analyst at Horizon Capital: "Twist is executing flawlessly on its pivot to become the essential data generation partner for AI biotech. The 27% growth in DSPS is a clear validation of this strategy. Their platform's ability to accelerate the 'wet lab' side of the AI loop is a formidable moat."
Michael Thorne, Portfolio Manager at Steadfast Funds: "The raised guidance and consistent margin performance are encouraging. However, the path to profitability remains a quarter-by-quarter proof point. The market needs to see that the heavy investment in commercial ops translates into sustained, high-margin revenue, not just top-line growth."
"Skeptical Sam" (pseudonym), frequent contributor on investor forums: "Twelfth quarter of growth, but twelfth consecutive quarter of losses. The 'AI gold rush' narrative is doing heavy lifting here. Every biotech is now an 'AI biotech.' What happens when that hype cycle cools? Their cash burn is still substantial, and 'breakeven by Q4' has been the mantra for a while. I'll believe it when I see it."
Rebecca Chen, Managing Partner at SynBio Ventures: "The detail on unit economics—$50 for a fragment, $200+ for an antibody—provides much-needed transparency. It shows a scalable, platform-based pricing model, not just custom projects. This, combined with their automation roadmap, is what will ultimately drive the margin expansion needed for long-term valuation re-rating."