Twilio (NYSE:TWLO) Updates Q3 2026 Earnings Guidance

Twilio (NYSE:TWLO) issued an update on its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 1.420-1.470 for the period, compared to the consensus earnings per share estimate of 1.250. The company issued revenue guidance of $1.5 billion-$1.5 billion, compared to the consensus revenue estimate of $1.5 billion. Twilio also updated its FY 2026 guidance to EPS.

Twilio Stock Performance

Shares of Twilio stock traded up $47.78 during trading hours on Friday, hitting $240.99. 8,122,194 shares of the company’s stock traded hands, compared to its average volume of 1,926,502. The stock has a market capitalization of $36.57 billion, a price-to-earnings ratio of 33.56, a PEG ratio of 3.84 and a beta of 1.37. 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 current ratio of 4.66 and a quick ratio of 4.66. The company has a fifty day simple moving average of $203.77 and a 200-day simple moving average of $161.63.

Twilio (NYSE:TWLO) last issued its quarterly earnings results on Thursday, August 6th. The technology company reported $1.47 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.15. The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.43 billion. Twilio had a net margin of 20.61% and a return on equity of 5.28%. The firm’s quarterly revenue was up 22.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.19 EPS. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. Equities research analysts anticipate that Twilio will post 2.79 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. The Goldman Sachs Group reaffirmed a “buy” rating and set a $330.00 price target on shares of Twilio in a research report on Friday. UBS Group restated a “buy” rating and issued a $285.00 price objective on shares of Twilio in a research report on Friday. Wolfe Research raised shares of Twilio to a “buy” rating in a report on Friday. TD Cowen boosted their price target on shares of Twilio from $245.00 to $260.00 and gave the company a “buy” rating in a research report on Friday. Finally, BTIG Research upped their price target on shares of Twilio from $245.00 to $285.00 and gave the stock a “buy” rating in a report on Friday. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $248.32.

Insider Transactions at Twilio

In related news, Director Erika Rottenberg sold 2,000 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $199.01, for a total transaction of $398,020.00. Following the transaction, the director directly owned 30,995 shares of the company’s stock, valued at approximately $6,168,314.95. This trade represents a 6.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through 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 business’s stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $205.43, for a total value of $1,751,907.04. Following the completion of the sale, the chief financial officer owned 109,724 shares of the company’s stock, valued at $22,540,601.32. The trade was a 7.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 1,802,480 shares of company stock worth $341,620,487. 0.21% of the stock is currently owned by company insiders.

More Twilio News

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.

Institutional Investors Weigh In On Twilio

Hedge funds have recently made changes to their positions in the business. Compound Planning Inc. raised 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 worth $1,118,000 after purchasing an additional 716 shares during the period. Invesco Ltd. boosted its position in Twilio by 56.9% during the fourth quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company’s stock valued at $448,276,000 after buying an additional 1,142,309 shares during the period. Corient Private Wealth LLC increased its holdings in shares of Twilio by 317.3% in 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 period. Mercer Global Advisors Inc. ADV lifted its stake in shares of Twilio by 53.3% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 13,448 shares of the technology company’s stock valued at $1,913,000 after acquiring an additional 4,678 shares during the last quarter. Finally, Vident Advisory LLC lifted its stake in shares of Twilio by 22.4% in the 4th quarter. Vident Advisory LLC now owns 56,024 shares of the technology company’s stock valued at $7,969,000 after acquiring an additional 10,250 shares during the last quarter. 84.27% of the stock is currently owned by institutional investors.

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.