Twilio (NYSE:TWLO) Announces Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Twilio (NYSE:TWLO) issued its earnings results on Thursday. The technology company reported $1.47 EPS for the quarter, beating analysts’ consensus estimates of $1.32 by $0.15, FiscalAI reports. The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.43 billion. Twilio had a return on equity of 5.28% and a net margin of 20.61%.Twilio’s quarterly revenue was up 22.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.19 earnings per share. 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 Trading Up 24.7%

Shares of NYSE:TWLO traded up $47.78 during mid-day trading on Friday, hitting $240.99. The stock had a trading volume of 8,122,194 shares, compared to its average volume of 1,926,502. The company’s 50 day moving average is $203.77 and its 200-day moving average is $161.63. Twilio has a 12-month low of $91.84 and a 12-month high of $254.50. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.66 and a current ratio of 4.66. The company has a market cap of $36.57 billion, a PE ratio of 33.56, a P/E/G ratio of 3.84 and a beta of 1.37.

Twilio News Roundup

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.

Wall Street Analyst Weigh In

A number of research firms have issued reports on TWLO. Zacks Research raised shares of Twilio from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Morgan Stanley reissued an “overweight” rating and issued a $261.00 price objective on shares of Twilio in a report on Friday. Monness Crespi & Hardt raised their target price on Twilio from $246.00 to $270.00 and gave the company a “buy” rating in a research report on Friday. The Goldman Sachs Group reissued a “buy” rating and set a $330.00 price target on shares of Twilio in a report on Friday. Finally, UBS Group reaffirmed a “buy” rating and issued a $285.00 price objective on shares of Twilio in a report on Friday. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $248.32.

Insider Activity

In other news, Director Erika Rottenberg sold 2,000 shares of the firm’s stock in a transaction 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 completion of the sale, the director owned 30,995 shares of the company’s stock, valued at $6,168,314.95. This trade represents a 6.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aidan Viggiano sold 8,528 shares of the company’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $205.43, for a total value of $1,751,907.04. Following the transaction, the chief financial officer directly owned 109,724 shares in the company, valued at $22,540,601.32. The trade was a 7.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,802,480 shares of company stock valued at $341,620,487 in the last 90 days. Company insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Twilio

Several institutional investors have recently bought and sold shares of TWLO. Zions Bancorporation National Association UT acquired a new position in Twilio during the fourth quarter valued at approximately $29,000. Aster Capital Management DIFC Ltd acquired a new position in Twilio in the 4th quarter valued at $29,000. GW&K Investment Management LLC grew its stake in Twilio by 78.1% in the 4th quarter. GW&K Investment Management LLC now owns 513 shares of the technology company’s stock valued at $73,000 after buying an additional 225 shares during the last quarter. Wilmington Savings Fund Society FSB raised its holdings in Twilio by 46.8% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 612 shares of the technology company’s stock worth $61,000 after acquiring an additional 195 shares during the period. Finally, Headlands Technologies LLC acquired a new position in Twilio during the 2nd quarter worth $77,000. 84.27% of the stock is currently owned by institutional investors.

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.