Shares of Twist Bioscience fell after the company forecast an underwhelming revenue outlook.
Shares fell 8.4% to $112.27 on Thursday, though the stock has more than tripled year to date.
The biotechnology company expects fiscal 2027 revenue to come in between $550 million and $560 million, representing a 21% increase at the midpoint. Although that range was above Wall Street estimates of $548.6 million, the midpoint would represent a slowdown from 22% growth in 2026. According to a note from analysts at Evercore ISI, investors expected an acceleration given the significant recent stock run-up.
The analysts also said the revenue guidance includes $100 million in artificial-intelligence drug discovery, below management's prior triple-digit order growth commentary. When excluding that number, baseline revenue growth comes in at 14%, which represents a slowdown, the analysts said.
Twist Bioscience's 2027 gross-margin forecast of 52.5% to 53% is also below estimates and raises questions about AI margins, the analysts said.
Fiscal fourth-quarter revenue rose 28% to $126.6 million, above the $123.5 million analyst consensus, according to FactSet.
Twist on Thursday posted a loss of $20.6 million, or 32 cents a share, compared with a loss of $27.1 million, or 45 cents a share, a year earlier.
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