Twilio (NYSE:TWLO) Issues Earnings Results

Twilio (NYSE:TWLO) issued its quarterly earnings data on Thursday. The technology company reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.24 by $0.09, FiscalAI reports. Twilio had a net margin of 0.67% and a return on equity of 3.91%. The firm had revenue of $1.37 billion for the quarter, compared to analysts’ expectations of $1.32 billion. During the same period in the prior year, the firm earned $1.00 earnings per share. The company’s quarterly revenue was up 14.3% compared to the same quarter last year. Twilio updated its Q1 2026 guidance to 1.210-1.260 EPS.

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

• Twilio reported record Q4 revenue of $1.4 billion, Q4 non‑GAAP operating income of $256 million, Q4 free cash flow of $256 million, and full‑year revenue of $5.1 billion, marking its first full year of GAAP profitability.
• Voice and Voice AI were major growth drivers—Voice accelerated to the high‑teens growth rate in Q4, Voice AI revenue rose >60% YoY, Branded Calling revenue grew roughly 6x YoY, and RCS volumes increased ~5x quarter‑over‑quarter.
• Management issued bullish targets: Q1 revenue of $1.335–$1.345 billion (10–11% organic) and full‑year 2026 organic growth of 8–9%, with 2026 non‑GAAP operating income and free cash flow each guided to $1.04–$1.06 billion, and a 2027 non‑GAAP operating income target of at least $1.23 billion (fee‑adjusted).
• Carrier A2P fee increases are a headwind to margins—Twilio expects ~$190 million of incremental pass‑through revenue in 2026 that it says will reduce 2026 non‑GAAP gross margin by ~170 basis points (and operating margin ~60–70 bps), even though the fees don’t reduce dollar profits.
• Execution and capital returns remain strong—non‑GAAP operating margin expanded, 2025 free cash flow was $945 million with $855 million in share buybacks (90% of FCF), share count down ~18%, and continued reductions in stock‑based comp and net burn.

Twilio Trading Up 2.3%

Twilio stock traded up $2.54 during trading hours on Friday, reaching $112.95. 6,475,131 shares of the company’s stock traded hands, compared to its average volume of 2,828,931. The firm has a market capitalization of $17.33 billion, a price-to-earnings ratio of 594.48, a PEG ratio of 2.16 and a beta of 1.32. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.68 and a current ratio of 4.68. Twilio has a fifty-two week low of $77.51 and a fifty-two week high of $145.90. The firm’s 50 day moving average is $129.42 and its 200-day moving average is $118.97.

Trending Headlines about Twilio

Here are the key news stories impacting Twilio this week:

• Positive Sentiment: Q4 beat — Twilio beat consensus on both EPS ($1.33 vs. $1.24) and revenue ($1.37B vs. $1.32B), with revenue up ~14% year-over-year and improved margins. This result supports the narrative of accelerating growth and improving profitability. Twilio Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Stronger-than-expected 2026 outlook — management guided to mid-teens reported revenue growth (roughly 11.5–12.5% reported growth cited in some summaries), raised EPS/Q1 and set material free cash flow targets, which lifted forward earnings expectations. That guidance is the primary bullish driver today. Twilio: Buy These Strong Results
• Positive Sentiment: Analyst support and price-target activity — several firms reiterated buys and set above-current price targets (Rosenblatt $180 PT; BTIG trimmed but kept a buy). Upgrades/reiterates help underpin upside after the beat. Forecasting The Future: 9 Analyst Projections For Twilio
• Neutral Sentiment: Mixed analyst takeaways — while some highlight durable profitability and FCF, others noted the outlook and fee/usage dynamics require close monitoring; expect divergent analyst notes and volatility as the story is digested. Twilio’s outlook draws mixed reactions from analysts
• Negative Sentiment: Sector/sentiment headwinds — some investors are rotating away from software and scrutinizing software valuations; a bearish note argues Twilio still faces downside risk amid broader software weakness. That skepticism is limiting the post-earnings rally. With Software Slumping, Twilio Has Further To Fall
• Negative Sentiment: Volatility despite beat — several headlines note shares have been volatile after the print as investors parse execution risks, fee pressure, and whether AI/voice growth will sustainably accelerate revenue and margins. Short-term swings are likely. What’s going on with Twilio stock Friday?

Analyst Ratings Changes

A number of equities research analysts recently commented on TWLO shares. Rosenblatt Securities restated a “buy” rating and set a $180.00 price target on shares of Twilio in a research report on Friday. TD Cowen restated a “hold” rating on shares of Twilio in a research note on Friday, October 31st. Bank of America upped their price target on shares of Twilio from $100.00 to $110.00 and gave the stock an “underperform” rating in a research report on Friday, October 31st. UBS Group increased their price objective on shares of Twilio from $135.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, October 31st. Finally, Monness Crespi & Hardt boosted their target price on shares of Twilio from $165.00 to $175.00 and gave the stock a “buy” rating in a research note on Friday, October 31st. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Twilio presently has an average rating of “Moderate Buy” and a consensus price target of $144.58.

Insider Transactions at Twilio

In other Twilio news, Director Andrew Stafman sold 1,000,000 shares of Twilio stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $129.00, for a total transaction of $129,000,000.00. Following the completion of the sale, the director owned 2,295,000 shares of the company’s stock, valued at approximately $296,055,000. The trade was a 30.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Khozema Shipchandler sold 13,336 shares of the stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $134.28, for a total value of $1,790,758.08. Following the completion of the transaction, the chief executive officer directly owned 193,781 shares in the company, valued at approximately $26,020,912.68. This trade represents a 6.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,043,438 shares of company stock worth $135,022,770 in the last quarter. 0.21% of the stock is owned by company insiders.

Institutional Investors Weigh In On Twilio

A number of institutional investors have recently made changes to their positions in TWLO. Zions Bancorporation National Association UT bought a new stake in shares of Twilio during the fourth quarter worth $29,000. Wilmington Savings Fund Society FSB increased its holdings in Twilio by 46.8% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 612 shares of the technology company’s stock worth $61,000 after purchasing an additional 195 shares in the last quarter. GW&K Investment Management LLC increased its holdings in Twilio by 78.1% during the 4th quarter. GW&K Investment Management LLC now owns 513 shares of the technology company’s stock worth $73,000 after purchasing an additional 225 shares in the last quarter. Headlands Technologies LLC acquired a new stake in shares of Twilio in the 2nd quarter valued at about $77,000. Finally, CIBC Private Wealth Group LLC lifted its holdings in shares of Twilio by 38.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 726 shares of the technology company’s stock valued at $103,000 after purchasing an additional 202 shares in the last quarter. 84.27% of the stock is owned by institutional investors and hedge funds.

About Twilio

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.