Twist Bioscience (NASDAQ:TWST) shares fell 4.2% in pre-market trading after the synthetic biology company reported fiscal third-quarter results that exceeded revenue expectations but fell short of Wall Street’s earnings forecast.
The mixed performance prompted investors to focus on the company’s continued profitability challenges despite solid top-line growth.
Revenue Beats Expectations, but Earnings Disappoint
Twist Bioscience reported a quarterly loss of $0.56 per share, missing analysts’ consensus estimate of a $0.48 loss.
Revenue reached $118.4 million during the quarter, surpassing the market forecast of $114.54 million and highlighting continued demand for the company’s DNA synthesis products and related services.
Bottom-Line Performance Remains a Concern
The latest earnings miss continues a pattern seen earlier in fiscal 2026, with Twist also reporting weaker-than-expected earnings in both the first and second quarters.
Leading into the results, analyst sentiment had become increasingly mixed.
Evercore ISI downgraded the stock from Outperform to In Line in early July, while both Leerink and Canaccord raised their price targets later in the month, reflecting confidence in the company’s long-term growth prospects despite near-term profitability concerns.
The absence of upward earnings estimate revisions during the 90 days preceding the report also suggested analysts remained cautious about the company’s ability to improve margins.
Revenue Growth Continues to Support Long-Term Outlook
Despite the earnings disappointment, Twist Bioscience continues to demonstrate solid commercial momentum.
The revenue beat reinforces demand across its core DNA synthesis business and related life sciences markets, although investors remain focused on the pace at which revenue growth can translate into improved profitability.
Investors Await Further Commentary
The stock remains well above its 52-week low of $23.30 following a strong rally over the past year.
However, Monday’s pre-market decline reflects investor concerns that continued earnings shortfalls are overshadowing the company’s healthy sales growth, with market participants looking to management’s earnings call for additional clarity on its path toward stronger margins and sustainable profitability.
Twist Bioscience Corporation stock price
