Twilio (NYSE:TWLO) Issues Earnings Results

Twilio (NYSE:TWLO) issued its earnings results on Thursday. The technology company reported $1.47 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.15, FiscalAI reports. Twilio had a return on equity of 5.28% and a net margin of 20.61%.The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.43 billion. During the same period in the prior year, the firm earned $1.19 earnings per share. Twilio’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 Performance

NYSE TWLO traded up $47.78 on Friday, hitting $240.99. 8,122,194 shares of the stock traded hands, compared to its average volume of 1,926,502. 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 business’s fifty day moving average is $203.77 and its two-hundred day moving average is $161.63. Twilio has a 12 month low of $91.84 and a 12 month high of $254.50. The firm 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.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Wolfe Research raised shares of Twilio to a “buy” rating in a research report on Friday. Bank of America raised Twilio from an “underperform” rating to a “buy” rating and boosted their price objective for the stock from $110.00 to $190.00 in a report on Wednesday, April 22nd. Mizuho lifted their target price on Twilio from $200.00 to $240.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. Zacks Research raised Twilio from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 13th. Finally, Wells Fargo & Company lifted their price objective on shares of 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 assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $248.32.

Insider Transactions at Twilio

In related news, CFO Aidan Viggiano sold 8,528 shares of Twilio stock in a transaction dated 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 approximately $22,540,601.32. This trade represents a 7.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erika Rottenberg sold 2,000 shares of the business’s stock in a transaction dated Monday, June 1st. The shares were 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 in the company, valued at $6,168,314.95. This represents a 6.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,802,480 shares of company stock valued at $341,620,487. Corporate insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Twilio

Several large investors have recently modified their holdings of TWLO. Aster Capital Management DIFC Ltd bought a new position in Twilio in the 4th quarter worth approximately $29,000. Zions Bancorporation National Association UT bought a new stake in Twilio during the 4th quarter valued at $29,000. Wilmington Savings Fund Society FSB raised 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 valued at $61,000 after acquiring an additional 195 shares during the period. GW&K Investment Management LLC lifted its position in shares of Twilio by 78.1% during the fourth quarter. GW&K Investment Management LLC now owns 513 shares of the technology company’s stock worth $73,000 after acquiring an additional 225 shares in the last quarter. Finally, Headlands Technologies LLC purchased a new stake in shares of Twilio during the second quarter worth $77,000. Hedge funds and other institutional investors own 84.27% of the company’s stock.

Twilio News Summary

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.

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.