Genscript Biotech Corporation

GenScript reported first-half 2026 revenue of USD 404.2 million, up 27.3% year over year. Group gross profit was USD 206.7 million, up 48% year over year, and adjusted net profit was USD 62.5 million, up 203.3% year over year. Life Science revenue was USD 319 million, up 28.8%; ProBio revenue was USD 61.1 million, up 34.2%; and Bestzyme revenue was USD 30.4 million, up 7.4%. Life Science adjusted gross margin was 57.8% or 55.4% excluding U.S. tariff refunds, and adjusted operating margin was 29.5% or 27.1% on the same basis. ProBio adjusted gross profit was USD 8.3 million, and adjusted EBITDA loss narrowed to USD 6.5 million from USD 16.8 million. Bestzyme adjusted gross profit was USD 13 million. For the full year, Life Science revenue growth is now expected at 25% to 30%, with adjusted gross margin above 55% and adjusted operating margin above 25%. ProBio revenue growth guidance was raised to 25% to 30%, and Bestzyme revenue growth is expected at 8% to 10% with adjusted gross margin over 43%. The company also said first-half CapEx was USD 48.4 million and full-year CapEx should be approximately USD 130 million.

Sherry Shao framed GenScript as a critical infrastructure provider for AI-driven drug discovery, emphasizing the company’s gene-to-protein platform, AI-enabled validation workflows, and global footprint. She said the industry bottleneck is shifting from generating AI designs to validating them, and argued GenScript is positioned to “close the loop” with a 4-day AI-to-biology validation engine. Her tone was strongly optimistic and strategic, focused on long-term structural demand rather than short-term cycle trends.

Phil Zhao highlighted that profitability is scaling faster than revenue, with group gross profit up 48% year over year and adjusted net profit up 203.3% to USD 62.5 million. He noted Life Science’s adjusted gross margin of 57.8% (55.4% excluding tariff refunds) and adjusted operating margin of 29.5% (27.1% on the same basis), calling the near-30% operating margin an important milestone. On balance sheet and capital allocation, he said the company had about USD 830 million in cash and cash equivalents, spent USD 48.4 million on CapEx in the first half, expects about USD 130 million for full-year CapEx, and does not see a need for equity financing.

Analysts focused on the upward revision to Life Science guidance, the role of AIDD demand, and whether more upside could follow. Management said growth was driven by AIDD demand, a higher-quality customer mix, and years of platform investment, and added that AIDD is still early, with order size, customer depth, and recurring complex projects all pointing in the same direction. Questions on competition versus Twist Bioscience drew a detailed response from Ray Chen, who said GenScript competes on speed to data, data quality, and value per delivery rather than commodity volume, and claimed meaningfully higher throughput and faster turnaround. Analysts also asked about ProBio’s AI-discovery pipeline and financing needs; management said ProBio signed USD 9.7 million of AIDD-related orders in the first half, delivered about USD 2.5 million in revenue from them, and that current liquidity and cash generation are sufficient, so no equity financing is needed.