Twilio (TWLO) Q3 2026 Earnings
Non-GAAP EPS excludes stock-based compensation of $153.9 million, share of losses from equity method investment of $25.5 million, amortization of acquired intangibles of $8.7 million, and income tax effects of non-GAAP adjustments of $(97.3) million; GAAP diluted EPS was $1.00.
How Did TWLO Stock React to Q3 2026 Earnings?
Did TWLO Beat Earnings? Q3 2026 Results
Yes. Twilio reported Q3 2026 earnings of $1.65 a share on Oct 29, 2026, beating the $1.47 consensus estimate by 12.4%. Revenue was $1.6B against a $1.5B estimate.
Twilio delivered a strong third quarter of 2026, beating Wall Street on both the top and bottom lines and extending its consensus EPS beat streak to six consecutive quarters. The cloud communications company posted adjusted EPS of $1.65, clearing the $1.47 consensus estimate by 12.37%, while revenue of $1.56 billion grew 19.9% year over year and came in 2.98% ahead of expectations. The standout driver was disciplined execution across a broadening product portfolio, with CEO Khozema Shipchandler framing Twilio as essential infrastructure for customer engagement in an AI-driven era. Profitability sharpened notably, with non-GAAP operating income rising 39% to $325.73 million and the non-GAAP operating margin expanding to 21% from 18% a year ago. Dollar-Based Net Expansion Rate climbed to 114% from 109%, reflecting deepening customer relationships. Free cash flow reached $369.63 million, representing a 24% margin. Looking ahead, Twilio raised its full-year 2026 outlook, now guiding to 20% reported revenue growth and free cash flow of $1.19 to $1.20 billion, while fourth-quarter non-GAAP EPS guidance of $1.48 to $1.53 signals continued confidence in the trajectory.
- Broad-based strength across the product portfolio and disciplined execution
- Dollar-Based Net Expansion Rate rose to 114% from 109% a year ago
- Incremental A2P carrier fee revenue of $53.1 million contributed to reported growth
- Lower amortization of acquired intangibles ($8.7M vs $26.9M) and stock-based compensation (9.9% of revenue vs 12.2%) boosted margins
- Non-GAAP operating margin expanded to 21% from 18%; free cash flow margin rose to 24% from 19%
“Q3 was a great quarter for Twilio, driven by disciplined execution and broad-based strength across our product portfolio.”
Twilio CEO, on the earnings call
What Is Twilio's Outlook?
For Q4 2026, Twilio guides to revenue of $1.595–$1.605 billion, implying 17%–17.5% reported growth and 11%–12% organic growth. It expects non-GAAP gross profit growth similar to organic revenue growth, non-GAAP income from operations of $300–$310 million, and non-GAAP diluted EPS of $1.48–$1.53 on 163 million weighted average diluted shares. For FY2026, it raised reported revenue growth to 20% (from 18%–18.5%) and organic revenue growth to 15% (from 13%–13.5%). It also raised non-GAAP income from operations to $1.19–$1.20 billion (from $1.135–$1.155 billion) and free cash flow to $1.19–$1.20 billion (from $1.135–$1.155 billion).
TWLO YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.6B | $1.3B | +19.9% |
| Gross Profit | $760.5M | $632.1M | +20.3% |
| Operating Income | $148.6M | $40.9M | +263.0% |
| Net Income | $161.2M | $37.2M | +332.7% |
TWLO Revenue by Segment
When Does Twilio Report Next?
Figures from SEC filings and company reports. Not investment advice.