Shares of Twist Bioscience Corp (TWST) plummeted 10.72% in Monday's trading session, despite the company reporting better-than-expected fiscal third-quarter results. The significant drop appears to be driven by the biotechnology firm's disappointing forward guidance, which fell short of analyst expectations.

For the fiscal third quarter ended June 30, Twist Bioscience reported a surprising net income of $20.4 million, or $0.33 per diluted share, a substantial improvement from a loss of $1.47 per share in the same period last year. This result significantly outperformed analysts' expectations, who had forecast a loss of $0.55 per share. Revenue for the quarter came in at $96.1 million, slightly above the consensus estimate of $95.6 million and representing a year-over-year increase from $81.5 million.

However, the company's forward-looking statements seem to have spooked investors. Twist Bioscience narrowed its fiscal 2025 revenue guidance to a range of $374 million to $376 million, down from its previous forecast of $372 million to $379 million. This new outlook falls short of the $376.5 million analysts were expecting. Furthermore, for the fourth quarter, the company projects revenue between $96 million and $98 million, below the consensus estimate of $99 million. These projections suggest a potential slowdown in growth, which appears to be the primary driver behind the stock's sharp decline, overshadowing the positive Q3 results.