Twilio (TWLO) Q2 2026 Earnings
How Did TWLO Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −1.40%.
Did TWLO Beat Earnings? Q2 2026 Results
Yes. Twilio reported Q2 2026 earnings of $1.47 a share on Aug 6, 2026, beating the $1.32 consensus estimate by 11.1%. Revenue was $1.5B against a $1.4B estimate.
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.
- 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
What Is Twilio's 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
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.2B | +22.0% |
| Gross Profit | $725.9M | $591.3M | +22.8% |
| Operating Income | $84.5M | $37.1M | +127.7% |
| Net Income | $1.1B | $22.4M | +4,659.4% |
TWLO Revenue by Segment
When Does Twilio Report Next?
Figures from SEC filings and company reports. Not investment advice.