Twist Bioscience (NASDAQ: TWST) Posts Record $118.4M Q3 Revenue, Raises Full-Year Guidance

Twist Bioscience (NASDAQ: TWST) reported its fourteenth consecutive quarter of sequential revenue growth in Q3 FY2026, with total revenue of $118.4 million up 23.2% year-over-year from $96.1 million. Despite that top-line record, net loss widened materially to $35.1 million, driven by a $17.3 million increase in SG&A expenses and the absence of a one-time $48.8 million gain that had inflated the prior-year comparison. Shares rose 10.39% on Monday, August 3, while the S&P 500 gained 1.42%.

Q3 FY2026 Results

• Revenue: $118.4 million, up 23.2% year-over-year from $96.1 million, marking the company's fourteenth consecutive quarter of sequential growth.
• Segment performance: DNA Synthesis and Protein Solutions (DSPS) revenue grew 39% year-over-year to $56.6 million; NGS Applications revenue grew 12% year-over-year to $61.8 million.
• Gross margin: 52.8% in Q3 FY2026, up 120 basis points sequentially from 51.6% in Q2 FY2026.
• GAAP EPS: $(0.56) per diluted share, missing the $(0.50) consensus estimate; net loss of $35.1 million compared to net income of $20.4 million in Q3 FY2025.
• Adjusted EBITDA: $(11.3) million, compared to $(8.0) million in Q3 FY2025.
• Cash position: Approximately $167 million in cash, cash equivalents, and short-term investments as of June 30, 2026.

What Drove the Results

GAAP EPS of $(0.56) missed the $(0.50) consensus estimate by 11.2%. The year-over-year net income swing from $20.4 million in income to a $35.1 million loss reflects two compounding factors: SG&A expenses rose to $80.7 million from $63.4 million, a $17.3 million increase of 27.3% year-over-year, while cost of revenues increased to $55.9 million from $44.8 million. The prior-year quarter also included a non-recurring $48.8 million gain from the spin-out of Atlas Data Storage, a one-time item that does not repeat in Q3 FY2026 and makes the net income comparison especially unfavorable on a reported basis.

R&D expenses held flat at $18.0 million year-over-year, while the gross margin expansion of 120 basis points sequentially to 52.8% reflects improving unit economics in both DSPS and NGS Applications. The company shipped products to approximately 2,650 customers in Q3 FY2026, up from approximately 2,480 in Q3 FY2025, and physically shipped approximately 369,000 genes compared with approximately 237,000 in the prior-year period.

Operational highlights included the launch of Twist Complex Genes for broad commercial access following an early access period, and the use of the Twist Comprehensive Viral Research Panel by researchers in the Democratic Republic of the Congo to identify a rare Ebola strain that PCR tests had missed.

Guidance

Twist raised its full fiscal year 2026 revenue guidance to a range of $456 million to $457 million, representing approximately 21% year-over-year growth and an increase of $12 million at the midpoint from prior guidance of $442 million to $447 million. For Q4 FY2026, the company guided for total revenue of approximately $123 million to $124 million, with sequential growth expected in both DSPS and NGS Applications. Twist reiterated its target of achieving adjusted EBITDA breakeven in Q4 FY2026, with full-year gross margin expected to remain above 52%.

Wall Street View

Wall Street analyst sentiment on TWST remains broadly constructive heading into Q4, with the most recent consensus reflecting strong buy and buy ratings across the majority of covering analysts. Twist's guidance raise and reiterated EBITDA breakeven target for Q4 provide the near-term milestones the market will use to assess execution.

Investor Takeaway

The revenue record and guidance raise confirm that Twist's growth engine is intact, but investors will watch whether the SG&A trajectory moderates as the company approaches adjusted EBITDA breakeven in Q4 FY2026. The absence of the prior-year Atlas Data Storage gain obscures the underlying operating trend in reported net income comparisons, making the adjusted EBITDA line the more relevant profitability gauge for the next several quarters. CEO Emily Leproust framed the Q4 breakeven not as the destination but as the foundation for profitable growth into fiscal 2027, a framing that shifts investor focus toward margin sustainability rather than the top-line growth rate alone.