Twist Bioscience (TWST) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 FY26 revenue of $118.4 million, up 23% year-over-year, marking the 14th consecutive quarter of sequential growth and surpassing guidance.

• Gross margin improved to 52.8%, a sequential increase of 120 basis points.

• Net loss was $35.1 million, or $0.56 per diluted share, compared to net income of $20.4 million in the prior year, which included a $48.8 million gain from a business spin-out.

• Adjusted EBITDA loss narrowed to $(11.3) million, approaching breakeven expected in Q4 FY26.

• Cash, cash equivalents, and short-term investments totaled approximately $167 million as of June 30, 2026.

Financial highlights

• Q3 FY26 revenue: $118.4 million (+23% YoY), beating guidance of $114–115 million.

• DNA Synthesis and Protein Solutions revenue grew 39% YoY to $56.6 million; NGS Applications revenue increased 12% YoY to $61.8 million.

• Therapeutic revenue up 49% YoY to $40.4 million; diagnostics revenue up 15% to $43.8 million.

• Gross margin: 52.8% in Q3 FY26, up from 51.6% in Q2 FY26.

• Adjusted EBITDA loss: $(11.3) million for Q3 FY26.

Outlook and guidance

• FY26 revenue guidance raised to $456–$457 million, representing 21% YoY growth.

• Q4 FY26 revenue expected at $123–$124 million, up 25% YoY.

• Adjusted EBITDA breakeven anticipated in Q4 FY26 and profitability expected in FY27.

• Gross margin expected above 52% for FY26, with a long-term goal of over 60%.

• Triple-digit percentage order growth for AI-enabled drug discovery expected in FY26 and FY27.