Twist Bioscience
TWST
$101.06
+10.39%
Twist Bioscience Corporation is a synthetic biology company that has developed a proprietary semiconductor-based DNA synthesis platform, enabling the production of high-quality synthetic DNA at scale for applications in healthcare, industrial biotechnology, and academic research. As a market leader in silicon-based DNA synthesis, the company differentiates itself through its ability to industrialize biology, offering faster, more affordable, and higher-throughput synthesis compared to traditional methods. The current investor narrative centers on the company's robust revenue growth, driven by its NGS tools and antibody discovery segments, alongside a strategic pivot toward profitability as evidenced by a recent quarter's positive net income, despite ongoing operating losses. The stock has also captured attention due to its inclusion in ARK Invest's disruptive technology portfolio, which has outperformed the S&P 500, fueling optimism about its long-term growth potential.…
TWST
Twist Bioscience
$101.06
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Investment Opinion: Should I buy TWST Today?
Rating & Thesis: We rate TWST as a Hold. The stock has strong growth momentum, with revenue up 19.3% YoY and a 'Buy' consensus rating, but the current price of $91.55 is near the average analyst target of $92.50, leaving limited upside. The thesis is that Twist is a high-quality growth company, but the risk-reward is balanced at current levels.
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TWST 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Twist's revenue growth and margin expansion are positive, but the company's persistent losses and high valuation create uncertainty. The stock's recent 1-month decline of -10.5% suggests momentum is fading. If the company can demonstrate a clear path to profitability, the stance would upgrade to bullish. Conversely, if revenue growth slows or losses widen, a bearish stance would be warranted.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Twist Bioscience's 12-month outlook, with a consensus price target around $92.50 and implied upside of -8.5% versus the current price.
Average Target
$92.50
0 analysts
Implied Upside
-8.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$36 - $120
Analyst target range
The target price range spans from a low of $36.00 to a high of $120.00, with the high target suggesting a potential 31.1% upside, likely assuming continued revenue acceleration and successful margin expansion. The low target implies a 60.7% downside, which could materialize if the company fails to achieve profitability or faces competitive pressures. Recent institutional actions show a mix of reaffirmations and one downgrade (Evercore ISI from Outperform to In Line on July 6, 2026), indicating some divergence in opinion. The wide spread between the low and high targets (a 233% difference) signals high uncertainty about the company's future performance, which is typical for high-growth, pre-profit biotech companies.
Bulls vs Bears: TWST Investment Factors
Twist Bioscience presents a classic high-growth, high-risk investment profile. The bull case is anchored by accelerating revenue growth (19.3% YoY), improving gross margins (51.6%), and a diversified product portfolio, supported by a 'Buy' consensus and a high target of $120. The bear case highlights persistent operating losses (-41.4% operating margin), a rich valuation (4.47x sales), and extreme volatility (beta 2.1), with a low target of $36 implying significant downside. Currently, the bull case has stronger evidence given the revenue momentum and margin expansion, but the key tension is whether the company can achieve profitability before the market's patience runs out. The single most important factor is the trajectory of operating margins—if they continue to improve toward breakeven, the stock could re-rate higher; if they stagnate, the valuation could compress sharply.
Bullish
- Accelerating Revenue Growth: Q2 FY2026 revenue grew 19.3% YoY to $110.7M, up from $92.8M, with sequential acceleration from $103.7M in Q1. This marks the fifth consecutive quarter of revenue expansion, demonstrating strong market demand for Twist's synthetic DNA products.
- Diversified Revenue Streams: Revenue is split between NGS Tools ($57.4M) and Antibody Discovery ($53.3M), reducing concentration risk. The antibody segment is showing particularly strong demand, indicating broad-based growth across key applications.
- Improving Gross Margins: Gross margin expanded to 51.6% in Q2 FY2026, up from 49.6% in the year-ago quarter and 45.1% in Q4 FY2024. This trend reflects operating leverage and cost efficiencies from the silicon-based platform.
- Positive EPS Surprise in Q3 FY2025: In Q3 FY2025, Twist reported EPS of $0.34, driven by a one-time gain, but it demonstrates the potential for profitability. Analysts estimate EPS of $1.38 for the next fiscal year, implying a significant turnaround.
Bearish
- Persistent Operating Losses: Despite revenue growth, Twist posted an operating loss of -$45.9M in Q2 FY2026, with an operating margin of -41.4%. TTM net margin is -20.6%, indicating the company is still far from sustainable profitability.
- High Valuation with Negative Earnings: The stock trades at 4.47x sales and a forward P/E of -107.7x, reflecting high expectations. The negative forward P/E, despite positive estimated EPS, suggests the market is pricing in a dramatic turnaround that may not materialize.
- Extreme Volatility and Overextension: With a beta of 2.115, the stock is highly volatile. After a 172.7% surge from its 52-week low, it sits near the high end of its range, raising concerns about a pullback. The 1-month decline of -10.5% shows recent weakness.
- Wide Analyst Target Range: The low analyst target of $36 implies a 60.7% downside from the current price, while the high is $120. This 233% spread signals high uncertainty and risk, with some analysts (e.g., Evercore ISI) downgrading the stock.
TWST Technical Analysis
Twist Bioscience has exhibited a powerful sustained uptrend over the past year, with the stock price surging 172.7% from its 52-week low of $23.30 to a current price of $91.55, representing 86.8% of the 52-week range (high of $105.47). This positioning near the upper end of its range indicates strong momentum and investor confidence, though it also raises concerns about potential overextension. The stock's 1-year relative strength versus the S&P 500 is an impressive 154.5 percentage points, underscoring its exceptional outperformance in a market that gained only 18.2% over the same period.
Beta
2.16
2.16x market volatility
Max Drawdown
-38.2%
Largest decline past year
52-Week Range
$23-$105
Price range past year
Annual Return
+200.1%
Cumulative gain past year
| Period | TWST Return | S&P 500 |
|---|---|---|
| 1m | +1.8% | +1.7% |
| 3m | +78.2% | +4.7% |
| 6m | +110.0% | +10.4% |
| 1y | +200.1% | +21.9% |
| ytd | +212.0% | +11.1% |
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TWST Fundamental Analysis
Twist Bioscience's revenue trajectory is robustly growing, with the most recent quarter (Q2 FY2026, ended March 31, 2026) reporting revenue of $110.7 million, a 19.3% year-over-year increase from $92.8 million in the prior-year quarter. This growth is accelerating, as sequential revenue increased from $103.7 million in Q1 FY2026, and the company has consistently expanded revenue over the past five quarters, from $84.7 million in Q4 FY2024 to the current level. The growth is driven by both the NGS Tools segment ($57.4 million) and Antibody Discovery ($53.3 million), with the latter showing particularly strong demand, indicating a diversified revenue base that supports the company's expansion.
Quarterly Revenue
$110715000.0B
2026-03
Revenue YoY Growth
+19.3%
YoY Comparison
Gross Margin
51.6%
Latest Quarter
Free Cash Flow
$-95140000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is TWST Overvalued?
Given Twist Bioscience's negative net income over the trailing twelve months (TTM), the price-to-sales (PS) ratio is the most appropriate valuation metric, as earnings-based multiples are not meaningful. The current PS ratio stands at 4.47x, while the forward PE is -107.7x, reflecting the market's expectation of future profitability. The negative forward PE, despite positive estimated EPS of $1.38 for the next fiscal year, suggests that the market is pricing in a significant turnaround, which is a key driver of the stock's valuation.
PE
-21.6x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-31.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: Twist's most significant financial risk is its ongoing unprofitability. The company reported an operating loss of -$45.9M in Q2 FY2026, with an operating margin of -41.4%, and TTM net margin of -20.6%. While gross margins are improving (51.6%), operating expenses remain high, particularly SG&A ($76.1M in Q2), which is 68.7% of revenue. The company's negative free cash flow of -$95.1M TTM indicates cash burn, though a current ratio of 3.64 provides near-term liquidity. Revenue concentration is moderate, with NGS and Antibody segments each contributing roughly half, but any slowdown in either could impact growth. The company's reliance on continued growth to justify its valuation is a key risk, as any deceleration could trigger a de-rating.
FAQ
The key risks are: (1) Financial risk: The company is unprofitable with an operating margin of -41.4% and negative free cash flow of -$95.1M, which could lead to dilution if cash runs low. (2) Competitive risk: Intense competition from IDT and GenScript could pressure pricing and market share. (3) Macro risk: With a beta of 2.1, the stock is highly sensitive to market downturns, as seen in the recent 1-month decline of -10.5%. (4) Company-specific risk: The wide analyst target range (low $36, high $120) indicates high uncertainty about the company's future performance. The most severe risk is a failure to achieve profitability, which could drive the stock down to the low target of $36, a -60.7% downside.
The 12-month forecast is based on three scenarios: Bull case (30% probability) targets $105-$120, driven by sustained growth and profitability. Base case (50% probability) targets $80-$100, with moderate growth and continued losses. Bear case (20% probability) targets $36-$60, if growth decelerates and losses persist. The most likely scenario is the base case, with the stock trading around the average analyst target of $92.50. The key assumption is that revenue growth remains in the mid-teens to 20% range, and the company makes gradual progress toward profitability.
TWST trades at 4.47x sales, which is high for a company with negative earnings, but not unreasonable for a growth company with 19.3% revenue growth. Compared to its own history, the stock is near the high end of its valuation range, as it has surged 172.7% over the past year. The forward P/S of ~1.9x based on estimated revenue of $868.5M suggests the market is pricing in significant growth. The stock appears fairly valued relative to its growth prospects, but the lack of profitability and high volatility make it a risky hold. If the company fails to achieve profitability, the valuation could compress significantly.
TWST is a high-growth stock with strong revenue momentum (19.3% YoY) and improving gross margins (51.6%), but it is still unprofitable and trades at a premium valuation (4.47x sales). The average analyst target of $92.50 is only 1% above the current price, suggesting limited upside in the near term. The stock is suitable for investors with a high risk tolerance who believe in the long-term potential of synthetic biology. However, given the high volatility (beta 2.1) and the wide target range (low $36, high $120), it is not a 'buy' for conservative investors. A better entry point might be below $70, offering a margin of safety.
TWST is more suitable for long-term investment due to its high volatility (beta 2.1) and speculative nature. The company is in a growth phase, with revenue growing 19.3% YoY, but it is not yet profitable. Short-term trading is risky due to the stock's 1-month decline of -10.5% and the potential for sharp swings. For long-term investors, a minimum holding period of 3-5 years is recommended to allow the company to achieve profitability and realize the potential of its DNA synthesis platform. The stock offers no dividend, so returns depend on capital appreciation, which is uncertain. Investors should be prepared for significant drawdowns, as the stock has a max drawdown of -38.24% over the past year.