Twist Bioscience Beats Sales Forecast, Widens Loss on AI Demand
Twist Bioscience reported second-quarter sales of $110.72 million, exceeding analyst consensus of $107.66 million and the company's own guidance of $107 million to $108 million. The life science company's adjusted loss widened to 59 cents per share, missing the expected loss of 48 cents.
The miss on profitability reflects the company's investment strategy. CEO Emily Leproust said the company expects to "chart toward profitability while simultaneously building on the strong momentum we are seeing across the portfolio."
Revenue Growth Driven by AI-Enabled Drug Discovery
The DNA Synthesis and Protein Solutions segment grew 28% to $53.3 million. NGS Applications revenue increased 12% to $57.4 million, driven by continued strength in AI-enabled drug discovery.
Customer acquisition accelerated. Twist shipped products to approximately 2,583 customers in the quarter, up from 2,431 a year ago. Gene shipments reached approximately 300,000, compared to 227,000 in the prior-year period.
Academic research and government revenue totaled $12.8 million for the quarter, with strength coming from U.S. accounts.
Raised Guidance and New Product Launch
Twist raised its fiscal 2026 sales guidance to $442 million to $447 million from the prior range of $435 million to $440 million. The company expects third-quarter sales of $114 million to $115 million versus analyst consensus of $111.37 million.
Management maintains its target to reach adjusted EBITDA breakeven in the fourth quarter of fiscal 2026 while holding gross margin above 52% for the year.
On Monday, the company launched Complex Genes in early access, expanding its clonal genes portfolio. The new synthesis capabilities target AI-enabled drug discovery and nucleic acid therapeutics applications.
Litigation Settlement and Stock Movement
Twist reached a settlement in principle on a securities class action lawsuit for approximately $17.1 million. The company booked $7.2 million in litigation settlement costs for the quarter.
Twist shares fell 4.21% to $57.86 on the earnings announcement.
For sales professionals, understanding how AI adoption drives customer acquisition can inform strategy. AI for Sales resources cover how companies leverage AI to accelerate revenue growth-a pattern Twist's results illustrate.
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