Twilio Inc Class A
Q2 2026 Earnings
Market Reaction
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.
- 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
TWLO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.