Twist Expects $100 Million From AI Drug Discovery in 2027
Key Facts
Twist Bioscience set AI drug discovery revenue at $100 million in its preliminary guidance for fiscal 2027, after the business’s revenue rose 175% in fiscal 2026. Management said the estimate is based on customer programs, the opportunity pipeline and delivery schedules it can forecast with a high degree of confidence. The figure follows revenue growth from $21.5 million in 2025 to $59.1 million in 2026. The company announced its fiscal 2026 results and outlook on November 12, 2026. These figures allow a comparison between the business’s previous growth and the company’s estimate for the following year.
The company said annual revenue reached a record $459.4 million in fiscal 2026, up 22% from $376.6 million in fiscal 2025. Fourth-quarter revenue rose 28% to $126.6 million from $99 million in the same period a year earlier. Twist thus recorded its 15th consecutive quarter of sequential revenue growth. Gross margin for the fiscal year also improved to 52.4% from 50.7% a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization turned positive in the quarter, according to the company’s results reported by Investing.com.
Twist forecast total revenue of $550 million to $560 million for fiscal 2027 and set expected gross margin at 52.5% to 53%. It also said it expects to achieve positive adjusted earnings before interest, taxes, depreciation and amortization for the full fiscal year. The outlook puts annual revenue above the record level reported in 2026. The $100 million estimate for AI drug discovery revenue represents part of the year’s overall revenue guidance and is based on business that management said it can forecast with confidence. The company did not say that the estimate fully includes all potential opportunities in the business.
Management said the $100 million figure reflects customer programs, the opportunity pipeline and delivery schedules it currently knows with a high degree of confidence. The chief executive said the company is confident it can achieve triple-digit growth in orders related to AI drug discovery during fiscal 2027. But she did not equate order growth with revenue growth, as the preliminary revenue guidance remains based on what the company can currently forecast. She said expanding capacity and adding workflows could create further opportunities beyond the guidance. She said: "We are very confident in our ability to achieve triple-digit growth in the percentage of orders during fiscal 2027 in AI drug discovery."
In its nearer-term outlook, Twist set first-quarter fiscal 2027 revenue at $130 million to $132 million, with a midpoint of $131 million. That midpoint exceeds analysts’ estimate of $126.5 million, according to figures reported by Investing.com. The first-quarter guidance comes ahead of the annual forecast of $550 million to $560 million in revenue. The company’s estimate for the AI-related business covers the full fiscal year and reflects programs and delivery schedules it expects with a high degree of confidence. The quarterly and annual figures make it possible to track whether total revenue growth keeps pace with the announced outlook.
Investing.com reported that the company’s shares fell 5.42% in premarket trading on November 12, following the results announcement, while the November 11 close was $122.59. The premarket move came after the quarterly results and new guidance were released, not before. The company ended fiscal 2026 with about $582 million in cash, cash equivalents and short-term investments. Investor relations had scheduled the results call for November 12, 2026, at 8:00 a.m. Eastern time. This context brings together the new financial outlook and the liquidity the company reported at the end of the fiscal year.