Twilio (NYSE:TWLO) Releases Earnings Results, Beats Estimates By $0.15 EPS

Twilio (NYSE:TWLO) issued its quarterly earnings results on Thursday. The technology company reported $1.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.32 by $0.15, FiscalAI reports. Twilio had a net margin of 20.61% and a return on equity of 5.28%. The firm had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the previous year, the company earned $1.19 EPS. The company’s revenue for the quarter was up 22.0% on a year-over-year basis. Twilio updated its Q3 2026 guidance to 1.420-1.470 EPS.

Here are the key takeaways from Twilio’s conference call:

• Q2 results exceeded expectations, with revenue of $1.5 billion up 22% reported and 17% organically, non-GAAP gross profit up 18%, operating income of $285 million, and record free cash flow of $353 million.
• Twilio raised its full-year outlook, now expecting 13%–13.5% organic revenue growth, 18%–18.5% reported growth, and non-GAAP operating income and free cash flow of $1.135 billion–$1.155 billion.
• AI-related demand is strengthening, particularly in voice, with broad-based adoption among AI-native startups, large ISVs, and enterprises; customers are increasingly expanding from voice into messaging and software add-ons.
• Product expansion and customer engagement improved, including 116% dollar-based net expansion, 30%+ self-serve growth, 25%+ ISV growth, and accelerating multi-product adoption supported by the new Conversations Layer and redesigned Console.
• Higher U.S. carrier pass-through fees are pressuring reported margins, contributing $71 million of incremental costs in Q2 and expected to reduce full-year non-GAAP gross margin by roughly 210 basis points, although management said they do not affect gross profit, operating-income, or free-cash-flow dollars.

Twilio Stock Up 24.7%

NYSE:TWLO traded up $47.78 during trading hours on Friday, reaching $240.99. The company had a trading volume of 8,122,194 shares, compared to its average volume of 1,926,502. Twilio has a twelve month low of $91.84 and a twelve month high of $254.50. The company has a quick ratio of 4.66, a current ratio of 4.66 and a debt-to-equity ratio of 0.13. The firm has a market cap of $36.57 billion, a price-to-earnings ratio of 33.56, a P/E/G ratio of 3.84 and a beta of 1.37. The business’s 50-day simple moving average is $203.77 and its two-hundred day simple moving average is $161.63.

Insider Activity at Twilio

In related news, CFO Aidan Viggiano sold 9,093 shares of the business’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $201.25, for a total value of $1,829,966.25. Following the completion of the sale, the chief financial officer directly owned 118,252 shares of the company’s stock, valued at $23,798,215. The trade was a 7.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Erika Rottenberg sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $199.01, for a total value of $398,020.00. Following the transaction, the director directly owned 30,995 shares in the company, valued at approximately $6,168,314.95. This trade represents a 6.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,802,480 shares of company stock worth $341,620,487 over the last three months. 0.21% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Twilio

Several hedge funds and other institutional investors have recently modified their holdings of TWLO. Compound Planning Inc. grew its position in Twilio by 10.0% in the 4th quarter. Compound Planning Inc. now owns 7,861 shares of the technology company’s stock valued at $1,118,000 after purchasing an additional 716 shares during the period. Invesco Ltd. raised its holdings in Twilio by 56.9% during the fourth quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company’s stock worth $448,276,000 after buying an additional 1,142,309 shares during the last quarter. Corient Private Wealth LLC raised its holdings in Twilio by 317.3% during the fourth quarter. Corient Private Wealth LLC now owns 61,219 shares of the technology company’s stock worth $8,708,000 after buying an additional 46,549 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of Twilio by 53.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 13,448 shares of the technology company’s stock valued at $1,913,000 after buying an additional 4,678 shares in the last quarter. Finally, Vident Advisory LLC grew its holdings in shares of Twilio by 22.4% during the fourth quarter. Vident Advisory LLC now owns 56,024 shares of the technology company’s stock valued at $7,969,000 after buying an additional 10,250 shares during the last quarter. Institutional investors own 84.27% of the company’s stock.

Key Stories Impacting Twilio

Here are the key news stories impacting Twilio this week:

• Positive Sentiment: Q2 results exceeded expectations: Twilio reported adjusted earnings of $1.47 per share, above the $1.32 consensus estimate, while revenue rose 22% year over year to $1.50 billion, beating the $1.43 billion forecast. Twilio’s Q2 Earnings Surpass Expectations, Revenues Rise Year Over Year
• Positive Sentiment: Upbeat guidance strengthened the investment case: Management forecast third-quarter EPS of $1.42 to $1.47, well above the $1.25 analyst estimate, and projected full-year revenue of approximately $6.0 billion versus the prior consensus of $5.8 billion. Reports also cited cost discipline, record profitability and strong cash generation. Twilio Delivers Strong Q2 Numbers
• Positive Sentiment: AI adoption is emerging as a growth catalyst: Investors and analysts highlighted increasing traction for Twilio’s voice-based AI tools and broader AI-powered customer-engagement services. Management described the business as entering a “powerful new chapter,” although the opportunity remains in its early stages. Twilio Makes Gains From AI Adoption
• Positive Sentiment: Analysts raised price targets: BTIG, Oppenheimer, Citizens JMP, Needham, Rosenblatt and Monness Crespi & Hardt increased their targets, generally to $270-$285, with several maintaining “buy” or “outperform” ratings. Unusually heavy call-option activity also reflected bullish short-term positioning.
• Neutral Sentiment: Valuation and expectations are elevated: The rally lifted Twilio near its 12-month high and increased its market capitalization above $36 billion. Piper Sandler raised its target to $247 but retained a “neutral” rating, suggesting that strong execution may already be partly reflected in the stock.

Analyst Ratings Changes

Several research firms recently issued reports on TWLO. Citigroup restated an “outperform” rating on shares of Twilio in a report on Monday, July 20th. Morgan Stanley reissued an “overweight” rating and issued a $261.00 price objective on shares of Twilio in a research report on Friday. Oppenheimer upped their target price on Twilio from $235.00 to $275.00 and gave the company an “outperform” rating in a research report on Friday. Tigress Financial raised their target price on Twilio from $170.00 to $255.00 and gave the stock a “buy” rating in a research note on Thursday, June 11th. Finally, Wells Fargo & Company lifted their target price on Twilio from $225.00 to $275.00 and gave the stock an “overweight” rating in a report on Friday. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $248.32.

Twilio Company Profile

Twilio Inc (NYSE: TWLO) is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio’s platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.

The company’s product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.