Companies /Technology

Twilio Inc Class A

NYSE: TWLO Software - Infrastructure
$239.54
â–² $11.08 (+4.85%) today
Markets open · 2:26pm ET

Q2 2026 Earnings

Reported Aug 6, 2026, 4:11pm ET · SEC source
$1.47
Beat +11.06%
EPS · est. $1.32 Adjusted
$1.5B
Beat +4.82%
Revenue · est. $1.4B
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−9%0+9%Aug 6Aug 7report 4:11pm ETearnings+0.6%+8.4%
−9%0+9%Aug 6Aug 7earnings+0.6%+8.4%
TWLO +8.4%S&P 500 +0.6%
−9%0+9%Aug 6Aug 7report 4:11pm ETearnings+1.1%+8.4%
−9%0+9%Aug 6Aug 7earnings+1.1%+8.4%
TWLO +8.4%NASDAQ +1.1%
−18%−9%0+9%Aug 5Aug 14report 4:11pm ETearnings+1.0%+5.6%
−18%−9%0+9%Aug 5Aug 14earnings+1.0%+5.6%
TWLO +5.6%S&P 500 +1.0%
−18%−9%0+9%Aug 5Aug 14report 4:11pm ETearnings+2.3%+5.6%
−18%−9%0+9%Aug 5Aug 14earnings+2.3%+5.6%
TWLO +5.6%NASDAQ +2.3%
+24.89%
Day of report
+3.64%
Next session
−1.28%
One week

Did TWLO Beat Earnings? Q2 2026 Results

Twilio posted a standout second quarter for fiscal 2026, beating Wall Street on both the top and bottom lines and raising its full-year outlook in a sign that its growth acceleration is holding. The company reported adjusted EPS of $1.47, beating the $1.32 consensus by 11.06%, extending its streak of consensus EPS beats to five consecutive quarters. Revenue came in at $1.50 billion, up 22.0% year-over-year and 4.82% ahead of estimates, with organic growth of 17% representing a meaningful step up from the high-single-digit to low-double-digit organic rates Twilio had been tracking in prior periods. Free cash flow surged to $352.64 million, or a 24% margin, while the Dollar-Based Net Expansion Rate climbed to 116% from 108% a year ago, reflecting healthy customer upsell momentum. Looking ahead, Twilio raised its full-year reported revenue growth outlook to 18%-18.5% from a prior 14%-15%, and lifted its non-GAAP operating income target to $1.14-$1.16 billion, signaling that management sees the stronger growth trajectory as durable rather than a one-quarter anomaly.

Key Takeaways
  • Organic revenue growth accelerated to 17% year-over-year
  • Dollar-Based Net Expansion Rate improved to 116% from 108% a year ago
  • Non-GAAP operating margin expanded to 19% from 18% year-over-year
  • Free cash flow margin improved to 24% from 21% year-over-year
  • Stock-based compensation as a percentage of revenue declined to 9.5% from 12.1%

“We are in a powerful new chapter at Twilio, marked by another quarter of organic growth acceleration as well as record profitability and free cash flow.”

Twilio CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2026, Twilio guided revenue of $1.505–$1.515 billion (16%–16.5% reported growth, 11%–12% organic growth YoY), non-GAAP operating income of $285–$295 million, and non-GAAP diluted EPS of $1.42–$1.47 based on 160 million diluted shares. For full-year 2026, Twilio raised its outlook: reported revenue growth of 18%–18.5% (up from 14%–15%), organic revenue growth of 13%–13.5% (up from 9.5%–10.5%), non-GAAP operating income of $1.135–$1.155 billion (up from $1.08–$1.10 billion), and free cash flow of $1.135–$1.155 billion (up from $1.08–$1.10 billion). Non-GAAP gross profit growth is expected to track similar to organic revenue growth.

TWLO YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$500.0M$1.0B$1.5B$1.2B$1.5BRevenue$591.3M$725.9MGross Profit$37.1M$84.5MOperating Income$22.4M$1.1BNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

TWLO Revenue by Segment

Communications

Figures from SEC filings and company reports. Not investment advice.