Twilio Inc Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.66%.
Did TWLO Beat Earnings? Q1 2026 Results
Twilio kicked off fiscal 2026 with a notably strong first quarter, posting revenue of $1.41 billion, up 20% year-over-year and ahead of the $1.35 billion consensus by 4.54%, while non-GAAP EPS of $1.50 beat the $1.27 estimate by 17.82%. The company described the quarter as its highest revenue and gross profit growth rates in more than three years, a momentum CEO Khozema Shipchandler tied directly to a multi-year transformation in innovation velocity and go-to-market efficiency as Twilio repositions itself as foundational AI-era infrastructure. Profitability metrics reinforced the narrative, with GAAP operating income surging to $107.67 million from $29.09 million a year ago and the Dollar-Based Net Expansion Rate improving to 114% from 107%, signaling deepening customer engagement. The strong results prompted Twilio to raise its full-year 2026 guidance, now calling for reported revenue growth of 14% to 15% and non-GAAP operating income of $1.08 billion to $1.10 billion, even as notable insider share sales near the stock's 52-week high drew some attention from investors.
- 20% reported revenue growth and 16% organic revenue growth year-over-year
- Dollar-Based Net Expansion Rate improved to 114% from 107% year-over-year
- GAAP income from operations grew 366% year-over-year
- Non-GAAP operating margin expanded to 20% from 18% year-over-year
- Stock-based compensation as a percentage of revenue declined to 10% from 12%
“Q1 was a milestone quarter for Twilio, marked by our highest revenue and gross profit growth rates in more than three years.”
Twilio CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, Twilio guided revenue of $1.420 billion to $1.430 billion (15.5%-16.5% reported growth, 10%-11% organic growth), non-GAAP income from operations of $250-$260 million, and non-GAAP diluted EPS of $1.27-$1.32. For full-year 2026, Twilio raised reported revenue growth guidance to 14%-15% (from 11.5%-12.5%), organic revenue growth to 9.5%-10.5% (from 8%-9%), non-GAAP income from operations to $1.08-$1.10 billion (from $1.04-$1.06 billion), and free cash flow to $1.08-$1.10 billion (from $1.04-$1.06 billion). Non-GAAP gross profit growth is expected to be similar to organic revenue growth.
TWLO YoY Financials
TWLO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.