Twist Bioscience (TWST) AI Stock Analysis

• Market Cap: $2.98B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: 20.32%
• EPS Growth: 63.81%
• Country: US
• Employees: 923
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.50
• Shares Outstanding: 61,311,703
• 10 Day Avg. Volume: 1,409,032
• 30 Day Avg. Volume: 1,413,617
• PEG Ratio: 0.34
• Price to Book (P/B): 3.56
• Price to Sales (P/S): 4.47
• P/FCF Ratio: -22.25
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 7.44
• Enterprise Value/Gross Profit: 14.41
• Enterprise Value/Ebitda: -56.92
• 1Y Price Target: $52.00
• Price Target Upside: 10.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -1.78
• Revenue Forecast (FY): $437.98M

• Rating: 55 Neutral
• Price Target: $54.00 ▲(15.09% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by still-negative cash flow and ongoing losses despite improving margins and a reasonable balance sheet. Offsetting this are strong technical momentum and a constructive earnings outlook with raised FY2026 guidance and a stated path to adjusted EBITDA breakeven, while valuation remains challenging given the negative earnings profile.

Positive Factors

Sustained revenue growth

Multi-year top-line growth and consecutive quarterly gains indicate durable demand for Twist’s synthetic DNA and services across end markets. A 24% three‑year CAGR and consistent quarter-to-quarter expansion point to scalable product-market fit and continued runway for organic revenue growth.

Expanding gross margins & operational leverage

High incremental margin conversion implies strong operating leverage as volumes rise—most incremental revenue drops to gross profit. Sustained >52% gross margins reduce the revenue threshold for profitability and support durable margin improvement as process automation and scale continue.

Strategic partnerships and product expansion

A co-exclusive license plus equity and governance rights with Invenra creates a structural revenue channel in antibody discovery and strengthens service offerings. This deal diversifies revenue streams, broadens addressable markets, and embeds Twist deeper into drug discovery value chains long-term.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow means the business continues to consume cash as it scales. Even with improvement versus prior years, ongoing cash burn necessitates external financing or drawdown of cash reserves until operating cash turns positive, posing execution and liquidity risk.

Ongoing adjusted EBITDA losses and higher operating spend

Management’s explicit decision to front-load operating spend to capture growth increases near-term losses and cash use. If revenue acceleration or margin gains underperform, elevated OpEx raises the risk that the company misses its planned adjusted EBITDA breakeven timeline and needs additional funding.

Customer concentration risk in NGS segment

Meaningful revenue concentration among a few NGS customers creates structural volatility and bargaining risk. Large customer pauses or procurement changes can produce outsized quarter-to-quarter swings in revenue, complicating forecasting and undermining stability until the customer base broadens.

Twist Bioscience Business Overview & Revenue Model

Company Description

Twist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. The company's DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium. The company has collaboration agreements with Victorian Clinical Genetic Services; Vivlion GmbH.; Kyowa Kirin Pharmaceutical Research, Inc.; deepCDR Biologics AG; and Centogene N.V to develop advanced sequencing tools. It also has a research collaboration with Boehringer Ingelheim International GmbH to use proprietary antibody libraries to discover therapeutic antibodies against multiple targets. Twist Bioscience Corporation was incorporated in 2013 and is headquartered in South San Francisco, California.

How the Company Makes Money

Twist Bioscience generates revenue primarily through the sale of synthetic DNA products, which are utilized by customers in genetic research, drug development, and various industrial applications. The company's revenue model is based on a combination of direct product sales, service contracts, and partnerships with pharmaceutical and biotechnology companies. Key revenue streams include sales of custom gene synthesis, oligonucleotides, and other DNA-related products. Additionally, Twist has formed strategic collaborations with leading organizations in the life sciences sector to expand its market reach and enhance its product offerings, which further contributes to its earnings. The company's innovative approach and scalable technology platform enable it to meet the growing demand for synthetic biology solutions, positioning it for continued growth in the biotechnology market.

Twist Bioscience Financial Statement Overview

Summary

Revenue has grown strongly over multiple years and margins/losses are improving, but the company remains unprofitable with negative operating and free cash flow. Balance-sheet leverage is manageable, though debt has risen, increasing risk if the path to breakeven slips.

Income Statement

Top-line momentum is solid, with revenue rising from $132.3M (2021) to $376.6M (FY 2025) and $391.6M in TTM (Trailing-Twelve-Months). Profitability is improving meaningfully: gross margin has expanded to ~51.6% in TTM (Trailing-Twelve-Months) from ~36.6% (2023), and net losses have narrowed sharply (net margin ~-19.6% in TTM vs. ~-66.7% in 2024). However, the company remains loss-making with negative operating profitability (EBIT margin still negative), and growth decelerated in the latest annual period (revenue growth ~20% in 2025 vs higher rates earlier).

Balance Sheet

Leverage looks manageable, with debt-to-equity around ~0.19 in FY 2025 and ~0.21 in TTM (Trailing-Twelve-Months), and equity remains sizable (~$456M–$473M recently). That said, returns remain negative due to ongoing losses (return on equity around -16% in FY 2025/TTM), and debt has stepped up versus prior years (roughly ~$94.1M in 2023 to ~$183.9M in TTM), which increases financial risk if profitability improvements stall.

Cash Flow

Cash generation remains a key weakness: operating cash flow is negative in both FY 2025 (-$47.6M) and TTM (Trailing-Twelve-Months) (-$51.0M), and free cash flow is also negative (-$75.6M in FY 2025; -$86.7M in TTM). A positive is that cash burn has generally improved versus earlier periods (e.g., operating cash flow -$142.5M in 2023), and the net loss is narrowing—but the business still relies on external funding until operating cash flow turns positive.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	391.56M	376.57M	312.97M	245.11M	203.56M	132.33M
Gross Profit	202.13M	191.00M	133.35M	89.73M	84.23M	51.71M
EBITDA	-51.16M	-52.10M	-176.71M	-174.15M	-211.68M	-143.91M
Net Income	-76.58M	-77.67M	-208.73M	-204.62M	-217.86M	-152.10M
Balance Sheet
Total Assets	638.09M	641.86M	614.32M	776.40M	961.38M	702.10M
Cash, Cash Equivalents and Short-Term Investments	197.95M	232.43M	276.40M	336.41M	504.97M	477.86M
Total Debt	183.86M	137.32M	85.03M	94.07M	94.91M	62.92M
Total Liabilities	181.99M	168.90M	141.63M	152.97M	171.99M	121.28M
Stockholders Equity	456.10M	472.96M	472.69M	623.43M	789.38M	580.82M
Cash Flow
Free Cash Flow	-86.72M	-75.63M	-69.17M	-170.25M	-226.24M	-139.31M
Operating Cash Flow	-51.01M	-47.63M	-64.09M	-142.47M	-124.39M	-112.24M
Investing Cash Flow	-33.16M	-24.76M	-3.07M	50.61M	-232.93M	156.16M
Financing Cash Flow	10.89M	28.54M	6.89M	911.00K	270.53M	329.18M

Twist Bioscience Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWST, the sentiment is Neutral. The current price of 46.92 is below the 20-day moving average (MA) of 48.62, above the 50-day MA of 41.71, and above the 200-day MA of 33.64, indicating a neutral trend. The MACD of 1.97 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 19.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TWST.

Twist Bioscience Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDNA	56 Neutral	$990.08M	-46.82	24.11%	―	14.46%	―
TWST	55 Neutral	$2.98B	-38.90	-16.79%	―	20.32%	63.81%
GRAL	54 Neutral	$1.96B	-4.63	-16.07%	―	20.53%	82.91%
NEO	52 Neutral	$1.25B	-11.64	-12.42%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FLGT	49 Neutral	$713.77M	-16.81	-3.80%	―	13.60%	74.64%
MYGN	48 Neutral	$412.94M	-1.21	-68.45%	―	0.21%	-233.51%

Twist Bioscience Corporate Events

Twist Bioscience Expands Invenra Stake Through Equity Transactions

On February 11, 2026, Twist Bioscience Corporation agreed to issue up to 632,328 shares of common stock as part of a series of transactions with Invenra Inc. and two of its investors, including up to 324,558 shares and $5 million in cash to Invenra for a license agreement and transfer of certain technology. Twist also committed to issue up to 307,770 shares to two Invenra investors in exchange for preferred stock representing about a 6% stake in Invenra and obtained the right to designate one director to Invenra’s board, while entering related registration rights arrangements to facilitate potential resale of the newly issued shares, strengthening its strategic position and governance influence in Invenra.

The most recent analyst rating on (TWST) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on Twist Bioscience stock, see the TWST Stock Forecast page.

Twist Bioscience Shareholders Back Directors and Governance Items

At its 2026 Annual Meeting of Stockholders, Twist Bioscience Corporation reported that approximately 91.81% of eligible shares were represented in person or by proxy, reflecting strong shareholder engagement. Stockholders elected three Class II directors—Keith Crandell, Jan Johannessen, and Trynka Shineman Blake—to three-year terms, approved on an advisory basis the compensation of the company’s named executive officers, and ratified the appointment of Ernst & Young LLP as independent registered public accounting firm for the fiscal year ending September 30, 2026, collectively signaling continued investor support for the company’s leadership, governance practices, and financial oversight.

The most recent analyst rating on (TWST) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on Twist Bioscience stock, see the TWST Stock Forecast page.