Twist Bioscience (TWST) Q4 2025: AI-Driven Orders Add $25M, Pushing DNA Synthesis Momentum

November 14, 2025 | By EarningsIQ Research

AI-enabled drug discovery demand added $25 million in orders, highlighting Twist’s expanding role in next-gen therapeutics and diagnostics workflows. Gross margin surpassed 50% for the year, reflecting operational leverage, while segment reporting shifts will clarify growth drivers. Management guides to further margin expansion and breakeven EBITDA by fiscal year-end 2026, with NGS growth expected to reaccelerate as customer transitions resolve.

Summary

• AI Discovery Orders Surged: Orders linked to AI-enabled drug discovery grew more than $25 million, accelerating SynBio and Biopharma convergence.
• Margin Expansion Realized: Gross margin exceeded 50%, demonstrating operational leverage and improved cost discipline.
• Segment Realignment to Drive Visibility: New reporting structure will clarify DNA Synthesis, Protein Solutions, and NGS Applications performance for investors.

Performance Analysis

Twist Bioscience delivered a record quarter, with revenue up 17% year-over-year, driven by both SynBio and NGS segments. The company’s SynBio revenue, which includes gene synthesis and related services, grew 17% year-over-year, led by the Express portfolio’s speed and scalability. NGS (Next-Generation Sequencing) revenue rose 16%, underpinned by diagnostic customers and new product traction in population genetics and agbio.

Gross margin for the year reached 50.7%, up from 42.6% in fiscal 2024, as higher volume leveraged fixed costs and process improvements. Operating expenses remained relatively flat for the third consecutive year, underscoring cost discipline even as revenue expanded. The Biopharma segment, though smaller, posted 22% growth and saw a material AI-driven order that contributed to a record $11.5 million in Q4 bookings. Geographic mix showed EMEA outpacing other regions at 35% growth, while the Americas and APAC delivered single-digit gains.

• AI Order Impact: AI-driven drug discovery orders contributed a step-change in SynBio and Biopharma, validating Twist’s integrated platform approach.
• NGS Customer Transition: A major diagnostic customer’s transition created a temporary “air pocket” in NGS, with sequential growth expected to resume in Q2 2026.
• Cost Control: Three years of flat operating expenses, despite double-digit revenue growth, highlight underlying operational efficiency gains.

Adjusted EBITDA loss narrowed significantly year-over-year, with management reiterating a path to breakeven by Q4 2026. Cash flow improved, and the company ended the year with $232 million in liquidity, supporting continued investment in growth initiatives.

Executive Commentary

Strategic Positioning

1. AI-Enabled Drug Discovery as a Growth Engine

AI-driven projects are now a central driver of both product and service demand, with over $25 million in incremental orders this year. Twist’s platform enables rapid, scalable synthesis for customers lacking wet labs, positioning the company as an essential partner for next-gen therapeutic discovery.

2. Segment Realignment for Investor Clarity

Twist will consolidate SynBio and Biopharma into “DNA Synthesis and Protein Solutions,” and rebrand NGS as “NGS Applications.” This move reflects the operational reality that customers increasingly purchase across the full workflow, and will provide investors with clearer visibility into end-market performance starting Q1 2026.

3. Margin Expansion and Cost Discipline

Gross margin crossed the 50% threshold, nearly 20 points above two years ago, as scale and process improvements took hold. Three years of flat opex despite revenue growth signal a scalable, disciplined cost structure. Management expects further margin gains as volumes rise and product mix shifts toward higher-value offerings.

4. New Product Pipeline and MRD Express Launch

Twist is finalizing an “MRD Express” product for minimal residual disease diagnostics, promising 12-hour turnaround for personalized cancer panels. This leverages Twist’s proprietary synthesis platform and automation, targeting a high-growth segment within NGS and supporting both clinical and research customers.

5. Global and Channel Expansion

EMEA growth outpaced other regions, and the company is seeing increasing business with global supply partners (distributors and OEMs) who resell under their own brands. This channel will be reported as a separate revenue line, highlighting Twist’s embedded role in broader genomics workflows.

Key Considerations

This quarter marked a strategic inflection as AI-driven orders and operational leverage combined to drive both top-line and margin expansion. The realignment of segments and new industry group disclosures will offer investors more actionable transparency into the business model and end-market traction.

Key Considerations:

• AI Demand as a Multiyear Catalyst: AI-enabled drug discovery is fueling both near-term revenue and longer-term pipeline depth, validating the platform’s scalability.
• NGS Transition Dynamics: Temporary softness from a major customer transition is expected to reverse, with 20% NGS growth targeted by Q4 2026.
• Margin Sustainability: Management expects to sustain >50% gross margin, with incremental margin expansion as scale and mix improve.
• Segment Reporting Enhancements: New revenue groupings (Therapeutics, Diagnostics, Industry/Applied, Academic/Government, Global Supply Partners) will clarify growth sources and reduce investor confusion.
• Product Innovation Pace: A robust pipeline, including MRD Express and FlexPrep, positions Twist to capture future demand surges in both diagnostics and research.

Risks

Execution risk remains around the timing of large customer ramps, especially in NGS, which could impact sequential growth and progress toward breakeven if delayed. Competitive intensity in DNA synthesis and NGS tools, pricing dynamics in academic markets, and customer funding variability (particularly in pharma and biotech) also create uncertainty. Regulatory and reimbursement shifts in diagnostics could alter market trajectories.

Forward Outlook

For Q1 2026, Twist guided to:

• $100–101 million in revenue (13–14% YoY growth)

For full-year 2026, management guided:

• Total revenue of $425–435 million (13–15.5% YoY growth)
• DNA Synthesis & Protein Solutions: $194–199 million (15–18% growth)
• NGS Applications: $231–236 million (11–13.5% growth)
• Gross margin above 52% for the year
• Adjusted EBITDA breakeven by Q4 2026

Management cited:

• NGS growth reacceleration in Q2 2026 as customer transitions complete
• AI-driven orders and new product launches as growth drivers
• Only modest MRD revenue contribution in 2026, with ramping in late 2026 and beyond

Takeaways

Twist’s platform is now seeing tangible revenue impact from AI-driven discovery, which is reshaping demand patterns and accelerating segment convergence. The business is structurally more profitable, with cost discipline and segment realignment setting the stage for clearer investor visibility and sustained growth.

• AI Orders Redefine Demand: The $25 million AI order surge signals a secular shift in how Twist’s platform is used, with implications for pipeline and recurring revenue.
• Margin and Cost Structure Transform: Gross margin above 50% and flat opex show Twist has built a scalable, leverageable business model.
• Watch for NGS Ramp and Product Launches: NGS growth will hinge on customer transitions and MRD Express adoption, with Q2 and Q4 2026 as key inflection points.

Conclusion

Twist Bioscience exits 2025 with expanding AI-fueled demand, operational leverage, and a clearer reporting structure. The company’s ability to serve both traditional and next-gen discovery customers positions it for durable growth, though execution around customer ramps and new product launches will be critical in the coming year.

Industry Read-Through

Twist’s results underscore the accelerating adoption of AI in drug discovery workflows, with tools providers increasingly serving as outsourced wet labs for both pharma and tech entrants. Margin expansion in genomics tools signals that scale and process automation are differentiators, while customer mix volatility (especially in NGS) remains a sector-wide challenge. Segment realignment and transparency trends are likely to be echoed by peers seeking to help investors track end-market exposure and recurring revenue opportunities. Rapid product cycles and diagnostic innovation (e.g., MRD Express) will remain key battlegrounds for competitive advantage in genomics and synthetic biology.

TWST Healthcare Biotechnology AI Drug Discovery NGS DNA Synthesis Margin Expansion Segment Reporting