Why Twist Bioscience (TWST) Is Poised for Strong 2026 Outperformance in a Rebounding Genomics Sector

The genomics sector is entering a phase of unprecedented momentum, driven by technological breakthroughs, surging demand for precision medicine, and the integration of artificial intelligence (AI) into genomic workflows. As the global genomics market is projected to expand from USD 50.1 billion in 2025 to USD 304.8 billion by 2035 at a compound annual growth rate (CAGR) of 19.8%, companies positioned at the intersection of innovation and scalability are set to outperform. Twist Bioscience (NASDAQ: TWST) stands out as a prime beneficiary of this trend, combining robust financial performance, strategic partnerships, and tools-driven biotech innovation to capitalize on the sector's renaissance.

Sector Momentum: A Perfect Storm for Growth

The genomics sector's acceleration is underpinned by three key forces: advancements in sequencing technologies, expanding applications in personalized medicine, and AI-driven data analysis. According to a report by Grand View Research, the global genomics market is expected to grow at a CAGR of 16.5% from 2024 to 2030, fueled by rising demand for gene therapy and drug discovery. North America, which accounts for 42.65% of the market, remains the epicenter of innovation, while the Asia Pacific region is emerging as a high-growth frontier.

A critical catalyst is the integration of AI into genomic pipelines. For instance, the Illumina-Vanderbilt collaboration leveraged AI models to identify RNA-based therapies in nine months-a process that traditionally takes years. Similarly, synthetic biology, a subsector where Twist operates, is expanding at a CAGR of 22.5%, with the market projected to reach USD 90.73 billion by 2032. Twist's silicon-based DNA synthesis platform aligns directly with this trajectory, enabling high-throughput, cost-effective production of oligonucleotides essential for NGS, drug discovery, and biopharma applications.

Twist Bioscience: Financial Resilience and Analyst Confidence

Twist's Q3 2025 results underscore its financial resilience and operational efficiency. Revenue rose 18% year-over-year to USD 96.1 million, driven by a 27% increase in NGS tools to USD 55.3 million and a 7% growth in synthetic biology revenue to USD 35.2 million. Gross margin expanded by 10.1 percentage points to 53.4%, reflecting improved factory utilization and process optimizations. Notably, the company achieved profitability with GAAP diluted earnings per share of USD 0.33, a stark turnaround from a prior-year net loss. While a one-time gain from the sale of its Atlas Data Storage business contributed USD 48.85 million to the bottom line, the core business's strength is evident in its recurring revenue streams and margin expansion.

Analyst sentiment reinforces this optimism. As of late 2025, TWST holds a "Moderate Buy" consensus rating from 10 Wall Street analysts, with 8 "Buy" ratings and 2 "Sell" ratings. The average 12-month price target of USD 44.88 implies a 47.63% upside from its current price of USD 30.40, with targets ranging from USD 33.00 to USD 62.00. This confidence stems from Twist's leadership in tools-driven biotech innovation, particularly in NGS and synthetic biology, which are central to the sector's growth narrative.

Strategic Partnerships and Product Innovations: A Competitive Edge

Twist's recent collaborations and product launches position it to dominate key segments of the genomics value chain. In a pivotal partnership with Element Biosciences, Twist expanded its end-to-end workflows for hybrid capture processes on Element's AVITI platform, enhancing sequencing quality and flexibility. This collaboration grants Twist exclusive access to develop workflows compatible with Element's Trinity sequencing technology, further solidifying its role in the NGS ecosystem.

Simultaneously, Twist's partnership with Microsoft on AI-driven biosecurity screening highlights its proactive approach to addressing ethical and regulatory challenges. A peer-reviewed study published in demonstrated how AI-generated protein sequences could evade standard biosecurity protocols, prompting the development of improved detection methods. This initiative not only strengthens Twist's reputation as a responsible innovator but also aligns with the sector's growing emphasis on AI safety and governance.

On the product front, Twist's launch of research-grade Plasmid DNA Preps in Q4 2025 underscores its commitment to supporting pre-clinical nucleic acid therapeutics research. These offerings cater to biotech and pharmaceutical companies seeking animal-origin-free and transfection-grade materials, positioning Twist as a critical supplier in the drug discovery pipeline. Additionally, the company's Q4 2025 earnings report highlighted a gross margin of 50.7%, reflecting its ability to balance innovation with financial discipline.

Conclusion: A Strong Case for 2026 Outperformance

Twist Bioscience's confluence of sector tailwinds, financial strength, and strategic innovation makes it a compelling candidate for 2026 outperformance. As the genomics sector accelerates, driven by AI integration and synthetic biology advancements, Twist's tools-driven approach-spanning NGS, biopharma, and biosecurity-positions it to capture market share across multiple high-growth segments. With analyst confidence reflected in a 47.63% price target upside and a robust pipeline of partnerships and product launches, TWST is well-positioned to deliver outsized returns in a sector poised for a multiyear rebound.