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

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

Shares of TWLO stock traded up $47.78 during mid-day trading on Friday, hitting $240.99. The company had a trading volume of 8,122,194 shares, compared to its average volume of 1,926,502. 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 stock’s 50 day moving average price is $203.77 and its 200-day moving average price is $161.63. Twilio has a 52-week low of $91.84 and a 52-week high of $254.50. The company has a market capitalization of $36.57 billion, a P/E ratio of 33.56, a P/E/G ratio of 3.84 and a beta of 1.37.

Trending Headlines about Twilio

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.

Insider Activity at Twilio

In other Twilio news, CFO Aidan Viggiano sold 9,093 shares of Twilio stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $201.25, for a total value of $1,829,966.25. Following the sale, the chief financial officer directly owned 118,252 shares in the company, valued at approximately $23,798,215. The trade was a 7.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 1,000,000 shares of the business’s stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $184.14, for a total transaction of $184,140,000.00. Following the completion of the sale, the director owned 620,000 shares in the company, valued at approximately $114,166,800. The trade was a 61.73% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,802,480 shares of company stock valued at $341,620,487. Insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Twilio

A number of hedge funds have recently made changes to their positions in TWLO. Compound Planning Inc. increased its stake 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 acquiring an additional 716 shares during the last quarter. Invesco Ltd. boosted its position in shares of Twilio by 56.9% during the 4th quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company’s stock valued at $448,276,000 after acquiring an additional 1,142,309 shares during the last quarter. Corient Private Wealth LLC boosted its position in shares of Twilio by 317.3% during the 4th quarter. Corient Private Wealth LLC now owns 61,219 shares of the technology company’s stock valued at $8,708,000 after acquiring an additional 46,549 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in shares of Twilio by 53.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 13,448 shares of the technology company’s stock valued at $1,913,000 after purchasing an additional 4,678 shares in the last quarter. Finally, Vident Advisory LLC grew its holdings in shares of Twilio by 22.4% in the fourth quarter. Vident Advisory LLC now owns 56,024 shares of the technology company’s stock valued at $7,969,000 after purchasing an additional 10,250 shares in the last quarter. 84.27% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on TWLO shares. KGI Securities started coverage on shares of Twilio in a research report on Thursday, July 2nd. They issued an “outperform” rating and a $250.00 price target for the company. UBS Group restated a “buy” rating and set a $285.00 target price on shares of Twilio in a research note on Friday. Jefferies Financial Group reiterated a “buy” rating and issued a $240.00 price target on shares of Twilio in a research note on Friday. Monness Crespi & Hardt raised their price target on Twilio from $246.00 to $270.00 and gave the company a “buy” rating in a report on Friday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Twilio in a research report on Monday. 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 given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $248.32.

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.