Twilio (NYSE:TWLO) Releases Earnings Results, Beats Estimates By $0.24 EPS

Twilio (NYSE:TWLO) announced its earnings results on Thursday. The technology company reported $1.50 earnings per share for the quarter, topping analysts’ consensus estimates of $1.26 by $0.24, FiscalAI reports. Twilio had a return on equity of 3.93% and a net margin of 0.67%.The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the previous year, the business earned $1.14 EPS. The company’s revenue was up 20.0% compared to the same quarter last year. Twilio updated its Q2 2026 guidance to 2.500-2.600 EPS.

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

• Twilio reported a strong Q1: $1.4B revenue (20% reported, 16% organic), 16% non?GAAP gross profit growth, $279M non?GAAP operating income, and $132M free cash flow.
• AI-driven demand is accelerating voice and software add?ons — voice revenue grew 20% (6th consecutive quarter of acceleration) and add?ons like Branded Calling and Conversational Intelligence grew >100% YoY as customers adopt voice AI and multi?channel agents.
• Rising carrier pass?through fees are compressing margins — Twilio incurred ~$46M incremental carrier fees in Q1, assumes $71M in Q2 and ~$235M for FY?2026, which the company says will reduce FY non?GAAP gross margin by roughly 200 basis points (fees pass through revenue but still pressure margin rates).
• Management raised FY guidance — full?year organic revenue growth tightened to 9.5%–10.5% (reported 14%–15%) and raised non?GAAP operating income and free cash flow outlook to $1.08B–$1.10B.
• Profitability and capital returns improving — non?GAAP operating margin hit a record ~19.8%, stock?based comp fell below 10% of revenue for the first time since IPO, and Twilio repurchased $253M of shares with ~ $900M remaining on the authorization.

Twilio Stock Performance

Twilio stock traded up $7.26 during trading on Thursday, hitting $148.17. The stock had a trading volume of 5,673,089 shares, compared to its average volume of 2,221,585. Twilio has a 1 year low of $91.84 and a 1 year high of $154.64. The company has a quick ratio of 4.03, a current ratio of 4.03 and a debt-to-equity ratio of 0.13. The stock’s 50 day moving average is $128.65 and its two-hundred day moving average is $126.34. The stock has a market cap of $22.45 billion, a price-to-earnings ratio of 779.88, a price-to-earnings-growth ratio of 5.56 and a beta of 1.28.

Insiders Place Their Bets

In other Twilio news, Director Erika Rottenberg sold 1,800 shares of the stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $149.02, for a total transaction of $268,236.00. Following the sale, the director owned 34,495 shares in the company, valued at $5,140,444.90. This represents a 4.96% decrease in their ownership of the stock. The transaction was disclosed in a legal 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 9,389 shares of the company’s stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $127.51, for a total transaction of $1,197,191.39. Following the completion of the transaction, the chief financial officer directly owned 130,341 shares in the company, valued at approximately $16,619,780.91. The trade was a 6.72% 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. Insiders have sold a total of 49,588 shares of company stock worth $6,336,644 over the last 90 days. Corporate insiders own 0.21% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in TWLO. State Street Corp increased its stake in Twilio by 47.8% in the third quarter. State Street Corp now owns 5,879,395 shares of the technology company’s stock valued at $588,469,000 after acquiring an additional 1,900,551 shares during the last quarter. SRS Investment Management LLC bought a new position in Twilio in the fourth quarter valued at $257,494,000. Invesco Ltd. increased its stake in Twilio by 225.0% in the third quarter. Invesco Ltd. now owns 2,009,237 shares of the technology company’s stock valued at $201,105,000 after acquiring an additional 1,391,013 shares during the last quarter. Alyeska Investment Group L.P. increased its stake in Twilio by 39.7% in the third quarter. Alyeska Investment Group L.P. now owns 2,643,859 shares of the technology company’s stock valued at $264,624,000 after acquiring an additional 750,951 shares during the last quarter. Finally, Atreides Management LP increased its stake in Twilio by 533.1% in the second quarter. Atreides Management LP now owns 730,300 shares of the technology company’s stock valued at $90,820,000 after acquiring an additional 614,943 shares during the last quarter. Institutional investors own 84.27% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on TWLO. UBS Group boosted their target price on Twilio from $150.00 to $180.00 and gave the stock a “buy” rating in a research note on Friday, April 24th. Rosenblatt Securities restated a “buy” rating and issued a $180.00 target price on shares of Twilio in a research note on Friday, February 13th. Mizuho boosted their target price on Twilio from $150.00 to $165.00 and gave the stock an “outperform” rating in a research note on Tuesday, April 21st. Royal Bank Of Canada boosted their target price on Twilio from $75.00 to $100.00 and gave the stock an “underperform” rating in a research note on Monday, January 5th. Finally, Jefferies Financial Group upgraded Twilio from a “hold” rating to a “buy” rating and boosted their target price for the stock from $125.00 to $160.00 in a research note on Monday, April 6th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Twilio has a consensus rating of “Moderate Buy” and a consensus price target of $154.09.

Key Twilio News

Here are the key news stories impacting Twilio this week:

• Positive Sentiment: Q1 EPS and revenue beat — Twilio reported non?GAAP EPS of $1.50 vs. consensus ~$1.26 and revenue of $1.41B, up 20% year/year, demonstrating continued top?line acceleration. Read More.
• Positive Sentiment: Strong quarter prompted an immediate bullish market reaction — multiple outlets note the share jump after the 20% revenue gain and beat on EPS, underscoring investor enthusiasm for the growth print. Read More.
• Positive Sentiment: Raised guidance and optimistic June-quarter outlook — Twilio set Q2 EPS guidance well above prior expectations and gave revenue guidance slightly above Street views (midpoint ~ $1.43B), supporting expectations for further upside. Read More.
• Positive Sentiment: Company lifts full?year growth outlook driven by AI demand — Management raised its annual revenue growth forecast, citing AI?driven demand for customer engagement tools as a tailwind. Read More.
• Neutral Sentiment: Official press release and materials available — The company published the full Q1 release, slide deck and conference call materials for investors to review details and management commentary. Read More.
• Neutral Sentiment: Analysts and previews highlighted margin focus going into the print — Some coverage flagged that margins remain an area investors will watch even as growth accelerates. Read More.

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.