Twilio rozšiřuje platformu o nové nástroje pro konverzace s AI, včetně Conversation Memory, Conversation Orchestrator a Conversation Intelligence. Cílí na přesnější a efektivnější propojení zákazníků, lidských agentů a AI.
Why Twilio Is Rallying While the Rest of SaaS Struggles Twilio NYSE: TWLO executives outlined the company’s strategy to expand beyond communications connectivity into tools designed to provide context, orchestration and intelligence for interactions involving customers, human agents and artificial intelligence systems.
Speaking at a Goldman Sachs event, Twilio said its core business remains connecting customers with end users through communications channels. However, the company sees its newer conversation-focused products as an important part of its future, particularly as businesses deploy AI agents alongside human support teams.
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3 AI and Cloud Stocks With Analyst Conviction and Long RunwaysChief Product and Technology Officer Inbal Shani described Twilio’s platform as consisting of three layers: communications channels, contextual data and AI agents operating across those channels. The goal, she said, is to use real-time context to make AI agents “more effective, more productive, more accurate.”
Conversation products and developer flexibility Twilio recently launched products including Conversation Memory, Conversation Orchestrator and Conversation Intelligence. Shani said the company is seeking to preserve its developer-first approach while also making it easier for a broader set of users to build customized solutions.
Twilio, Braze: The Top 2 CEP Platforms to Own in 2025“The concept of developer is changing,” Shani said, noting that declining development costs are enabling more enterprises, independent software vendors and AI-native companies to create tailored applications.
Conversation Memory is intended to help preserve context across customer interactions. Shani said Twilio is distinguishing between information needed to improve a real-time conversation and longer-term data held in systems such as customer relationship management platforms and data warehouses. Rather than asking customers to duplicate their existing data, Twilio is building connectors to those systems and retaining information most relevant to the interaction.
Beta customers helped shape product priorities, according to Shani. One key request was a “warm handoff” between an AI agent and a human agent, as well as the ability to detect when an interaction should be escalated. While Twilio initially emphasized customer-support applications, some beta users also adopted the products for sales uses, such as identifying leads outside business hours and transferring them to sales staff later.
Voice AI opportunity remains early Twilio said voice AI remains in the early stages of adoption, with challenges involving latency, quality, turn detection, background noise, network variability and model accuracy still being addressed across the industry.
Shani said accuracy is the primary barrier to deploying voice AI agents at scale, and that infrastructure is especially important for managing latency, voice quality and proper turn detection. She also identified trust and regulation as significant adoption considerations, including identity verification, monitoring, data storage, supervision mechanisms and evolving compliance requirements.
Twilio’s ConversationRelay product already allows customers to select and bring their own speech-to-text, text-to-speech and large language models, Shani said. The company intends to remain a neutral platform rather than favoring a single model provider or AI agent architecture.
“We do not think there is going to be only one,” Shani said, referring to AI models and agents. She said customers are likely to use multiple models and agents for different workloads and use cases.
Twilio expects customer conversations to increasingly span multiple channels, potentially beginning with voice and moving to messaging or email. Shani said the company’s orchestration capabilities are designed to support those multichannel interactions over a customer’s lifetime, from marketing to sales, support and subsequent engagement.
Growth, margins and messaging A Twilio executive said the company’s organic revenue outperformance of more than 5% in each of the past two quarters was broad-based across products, sales channels and customer industries. Messaging, which represents about 60% of revenue, grew about 18% in the first half of the year and was a significant contributor to the upside.
The executive cautioned that Twilio does not view revenue beats above 5% as a new normal, noting that the company’s usage-based model can create variability. Over the previous several years, the company has generally exceeded its revenue guidance by approximately 2% to 4%, the executive said.
Voice revenue grew more than 20% in the second quarter, according to the company. Twilio said roughly half of the year-over-year dollar growth in voice came from connectivity volume and half came from software add-ons, such as conferencing, Media Streams and Answering Machine Detection.
Twilio also said gross profit growth has benefited from favorable product mix, including higher-margin voice, software add-ons and self-service products. The company is pursuing cost reductions through more direct carrier connections, hosting-cost initiatives and migration of certain products from on-premises environments to the cloud.
Regarding higher U.S. carrier fees, Twilio said it has not yet seen a meaningful change in messaging demand. The company said customers have expressed dissatisfaction with the increased costs, but Twilio continues to offer alternatives including WhatsApp, email and other over-the-top channels.
Self-service platform and investment discipline Twilio launched its updated Console in May at its Signal conference, consolidating access to its products in one place and using AI to help customers complete setup, registration and campaign workflows. The company said conversion rates on the new platform are up about 90% compared with its prior platform, though executives emphasized that the launch is still in its early months.
Shani said Twilio has adopted a more structured annual planning process for research and development, weighing investments across core infrastructure, product improvements, innovation and earlier-stage experiments. The company said it is prioritizing headcount and infrastructure spending based on expected return on investment, including work to address technical debt where demand signals indicate opportunities such as voice AI.
Twilio also said it is using AI internally in areas including its self-service platform, global operations, customer support and engineering tools, while maintaining what executives described as financial and operating discipline.
About Twilio (NYSE:TWLO)Twilio Inc NYSE: TWLO is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio's platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.
The company's product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.
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Twilio ve 2. čtvrtletí zvýšila tržby o 22 % meziročně na 1,50 miliardy USD a dosáhla rekordního volného cash flow ve výši 352,6 milionu USD. Zároveň zvýšila výhled tržeb, provozního zisku a volného cash flow pro rok 2026.
Key Takeaways TWLO posted 22% y/y revenue growth in Q2, while organic growth rose to 17% and operating margin hit 19%.TWLO raised 2026 revenue, operating income and free cash flow views after a record quarterly free cash flow.TWLO is gaining AI traction through major deals as businesses use its platform for AI-powered communications. Twilio Inc. (TWLO - Free Report) has emerged as one of the strongest performers in the software space this year. The stock has gained roughly 69% year to date (YTD), sharply outperforming the broader Zacks Internet-Software industry’s fall of 2.4%.
Twilio has also outpaced major industry peers, including Atlassian Corporation (TEAM - Free Report) , DocuSign, Inc. (DOCU - Free Report) and Workiva Inc. (WK - Free Report) . While Workiva has declined 8.9% YTD, Atlassian and DocuSign have gained 19.9% and 1.2%, respectively.
Twilio YTD Price Return Performance
Image Source: Zacks Investment Research
After such a strong rally, investors may wonder whether Twilio’s stock has already priced in its growth opportunity. In our view, the answer is no. Twilio's latest results show that the rally is backed by improving fundamentals, stronger margins, rising cash flow and growing demand for its communications infrastructure as businesses deploy AI applications.
TWLO’s Strong Financial Results Support Further UpsideTwilio's second-quarter 2026 results provide a strong reason to remain bullish on the TWLO stock. Revenues increased 22% year over year to $1.50 billion. Organic revenue growth accelerated to 17% from 16% in the previous quarter and 13% in the year-ago quarter. Non-GAAP gross profit climbed 18% year-over-year to $736 million, marking the fifth consecutive quarter of accelerating non-GAAP gross profit growth.
Image Source: Twilio Inc.
Profitability also continued to improve. Non-GAAP income from operations increased 29% to $285 million, while the operating margin expanded 100 basis points year over year to 19%.
The improvement came despite pressure from higher U.S. carrier fees. Twilio's non-GAAP gross margin contracted 160 basis points year over year to 49.1% in the second quarter. But management noted that excluding the incremental carrier fees, the gross margin would have increased 60 basis points year over year. This highlights the underlying improvement in the business and the benefits of a richer product mix and cost discipline.
In the second quarter, Twilio generated a record free cash flow of $352.6 million compared with $263.5 million in the year-ago period. Twilio's dollar-based net expansion rate also improved to 116% from 108%, indicating stronger spending from existing customers.
The company’s optimistic outlook is also reflected in its raised full-year guidance. Twilio expects 18-18.5% reported revenue growth and 13-13.5% organic revenue growth in 2026, up from previous 14-15% and 9.5-10.5%, respectively. The company also increased its full-year non-GAAP operating income and free cash flow forecasts. Each metric, non-GAAP operating income and free cash flow, is projected at $1.135-$1.155 billion, up from the earlier stated $1.08-$1.10 billion.
This combination of accelerating growth, expanding profitability and upbeat guidance makes the stock an ideal investment case.
AI Adoption Creates Growth Opportunity for TwilioTwilio's biggest long-term opportunity could come from the rapid adoption of AI applications. The company is positioning its communications platform as infrastructure that enables businesses to connect AI agents with customers across voice, messaging and other channels.
Its new Conversations Layer includes Conversation Memory, Conversation Orchestrator, Conversation Intelligence, Conversation Relay and Agent Connect. Early customer results are encouraging. The U.K.-based digital car finance platform and online broker, Car Finance 247, signed a seven-figure deal after testing the platform during the second quarter. Car Finance 247’s AI assistant, Carla, has handled nearly 300,000 customer conversations. Customers interacting with the Carla AI assistant converted to approved leads 1.6 times faster.
Twilio is also seeing strong demand from AI-focused businesses. During the second quarter, it signed an eight-figure deal with a leading AI company. Eltropy, an agentic AI platform, used Twilio's Conversation Relay to build an AI voice agent, while OpenEvidence switched from a competitor to Twilio for voice infrastructure.
The opportunity is significant because growth of AI agents should increase the demand for reliable communication infrastructure. Twilio can potentially benefit from both the development of these applications and the communications activity they generate.
Twilio's Premium Valuation Looks JustifiableTWLO does trade at a premium. Its forward 12-month price-to-earnings (P/E) ratio of 35.20X is well above the industry's 27.89X average.
Twilio Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
It also trades above industry peers, including Atlassian, Workiva and DocuSign. Currently, Atlassian, Workiva and DocuSign trade at P/E multiples of 32.60X, 20.03X and 13.37X, respectively.
However, the premium appears justified by Twilio's stronger growth profile and improving profitability. The company is growing organically at a healthy pace, expanding margins, generating substantial free cash flow and gaining traction in AI-related communications. Its 116% dollar-based net expansion rate also shows that existing customers are spending more on the platform.
In addition, Twilio is returning capital to shareholders. It repurchased stocks worth $323 million in the first half of 2026 and had approximately $826 million remaining under its authorized repurchase program as of June 30, 2026.
Conclusion: Buy TWLO Stock Right NowTwilio's 69% YTD gain makes the stock more expensive, but its improving fundamentals suggest that the rally is supported by more than investor enthusiasm.
Accelerating organic growth, stronger operating leverage, record free cash flow, raised guidance and increasing AI adoption provide multiple reasons to remain bullish. While the valuation remains stretched, Twilio's growth opportunity and improving financial profile make its premium multiple justifiable for now.
Twilio currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Twilio ve 2. čtvrtletí zvýšila tržby o 22 % na 1,5 miliardy USD a upravený zisk na akcii vzrostl o 23 % na 1,47 USD. Firma zároveň zvedla celoroční výhled tržeb na 18 % až 18,5 %.
The demand for artificial intelligence (AI) software is rising rapidly, with Gartner projecting a 60% increase in AI software spending this year to $453 billion, followed by a 41% jump next year to more than $638 billion.
This terrific growth isn't surprising, as integrating AI-focused software tools into business operations is boosting productivity. A Morgan Stanley research report noted earlier this year that companies using AI for at least a year have experienced an 11.5% increase in productivity. Not surprisingly, companies such as Palantir Technologies and SoundHound AI that sell enterprise AI software solutions have been experiencing healthy revenue growth.
However, both stocks have been underperforming this year. While Palantir stock is down 3% in 2026, SoundHound AI has dropped 29%. Cloud communications specialist Twilio (TWLO -1.48%), meanwhile, has clocked impressive gains of 57% in 2026, driven by growing demand for its AI tools.
Let's see why that has been the case, and check if Twilio can sustain its impressive rally in the future and make investors richer.
Image source: The Motley Fool.
Twilio's AI tools have improved its growth trajectoryTwilio released its Q2 results on Aug. 6. The company's revenue increased 22% year over year to $1.5 billion. Its organic revenue increased by 17% year over year. What's more, Twilio reported non-GAAP earnings per share of $1.47, up by 23% from the year-ago period.
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There's no doubt that Twilio's growth is nowhere near the phenomenal performance of SoundHound and Palantir, but it has been stepping on the gas lately. For instance, its revenue increased by 13% year over year in the same quarter last year. The improvement in Twilio's growth rate is driven by increasing adoption of its AI solutions.
The company has traditionally provided application programming interfaces (APIs) that help its clients stay in touch with their customers across various channels, including voice, text, email, chat, and video. However, it has now expanded beyond its core business, offering clients AI tools to predict customer behavior, build AI agents and conversational AI solutions, automate workflows, and improve security.
The good news is that these offerings are becoming popular among customers. For example, an automotive fintech company that used Twilio's conversational AI platform to build an AI assistant has witnessed a 1.6x jump in lead conversion. This client signed a seven-figure deal with Twilio to implement its conversational AI offerings.
Importantly, this wasn't the only customer deploying Twilio's AI offerings. Management noted on the earnings call that it has "signed an 8-figure deal with a leading AI company and other key wins with All Nippon Airways, Atlassian, Eltropy, Kixie, Lirio, Medibank, Olo, OpenEvidence, Orionai Solutions, Vozzi and Xplor Technologies."
Another important point to note is that Twilio isn't just winning new customers. Its existing customers are also spending more on its services. This is evident from the increase in the dollar-based net expansion rate, which compares customer spending in a quarter to that of the same customer cohort in the year-ago period..
Twilio's dollar-based net expansion rate increased by eight percentage points year over year in Q2 to 116%. Additionally, increased spending by existing customers is improving the company's profit margin.
TWLO Profit Margin data by YCharts
Moreover, Twilio's guidance suggests that it expects its solid growth trajectory to continue. The company has raised its full-year revenue growth guidance to a range of 18% to 18.5%, up from the earlier range of 14% to 15%. Not surprisingly, even analysts have become bullish about Twilio's growth prospects.
TWLO Revenue Estimates for Current Fiscal Year data by YCharts
The valuation makes Twilio a solid AI pickTwilio trades at an attractive 6.3 times sales despite its impressive rally in 2026. Its price-to-earnings ratio of 31 isn't expensive either, given the expensive multiple Palantir trades at.
TWLO PS Ratio data by YCharts
The chart given above makes it clear that Twilio is a value play right now. It is delivering robust growth and is significantly cheaper than its peers that command significant premiums. Assuming Twilio's revenue indeed increases to $7.34 billion in 2028, and it trades at even 10 times sales at that time, which will be a significant discount to its peers, its market cap could jump to $73 billion.
That's just over double Twilio's current market cap. On the other hand, the expensive valuations of Palantir and SoundHound AI could weigh on their performance, which is why I think Twilio could be the better AI stock to buy among the three companies discussed in this article.
Twilio ve 2. čtvrtletí zvýšila tržby na 1,5 mld. USD, meziročně o 22 %, a zvedla celoroční výhled tržeb i provozního zisku. Růst táhly messaging, voice a software produkty.
Why Twilio Is Rallying While the Rest of SaaS Struggles Twilio NYSE: TWLO reported second-quarter 2026 revenue of $1.5 billion, up 22% year over year on a reported basis and 17% on an organic basis excluding incremental U.S. carrier pass-through fees. The communications platform company said its results reflected strong volumes, customer additions and growth across messaging, voice and software products.
Chief Executive Officer Khozema Shipchandler called the quarter “exceptional,” citing $285 million in non-GAAP income from operations and $353 million in free cash flow. Non-GAAP gross profit rose 18% year over year to $736 million, marking the company’s fifth consecutive quarter of accelerating non-GAAP gross-profit growth, according to Chief Financial Officer Aidan Viggiano.
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Messaging, Voice and Software Products Drive Growth 3 AI and Cloud Stocks With Analyst Conviction and Long RunwaysMessaging revenue grew 28% year over year, aided by strong volumes and growth in WhatsApp and Rich Communication Services, or RCS. Viggiano said incremental carrier fees accounted for roughly 10 percentage points of messaging growth. Excluding those fees, messaging grew approximately 18%, she said during the question-and-answer session.
Voice revenue growth exceeded 20% year over year, supported by both usage volumes and software add-ons. Twilio said Branded Calling and Conversational Intelligence each posted triple-digit growth. Total software add-on revenue rose more than 25%, led by Verify, which grew more than 30%.
Twilio, Braze: The Top 2 CEP Platforms to Own in 2025Twilio’s dollar-based net expansion rate was 116% in the quarter. Incremental carrier fees contributed about five percentage points to that figure, Viggiano said, though she added that expansion improved sequentially even excluding the fee effect. The company also cited accelerating revenue growth from customers using multiple Twilio products.
Chief Revenue Officer Thomas Wyatt said demand for voice artificial-intelligence capabilities was broad-based across enterprise customers, large independent software vendors and AI-native companies. He highlighted a horizontal conversational AI customer that grew into a $6 million annual run-rate customer and a vertical conversational AI company that reached a $9 million run rate after initially beginning with Twilio’s voice services.
New Conversational Platform and Console Rollout At its SIGNAL user conference, Twilio announced general availability of its next-generation platform, including Conversation Memory, Conversation Orchestrator, Conversation Intelligence, Conversation Relay and Agent Connect. Shipchandler said the products are intended to help businesses manage context-rich customer conversations involving both human representatives and AI agents.
He pointed to automotive fintech company Car Finance 247, which joined Twilio’s private beta program and later signed a seven-figure deal to use the Conversations Layer. Its AI assistant, Carla, has handled nearly 300,000 customer conversations, Shipchandler said. Customers interacting with Carla convert to approved leads 1.6 times faster, which the company said has created a multimillion-dollar annual revenue uplift across the customer’s business.
Twilio also launched a redesigned Console in May. The company said the platform provides a centralized interface for managing Twilio workloads, includes AI-guided onboarding and offers trials designed to encourage product experimentation. A majority of existing customers have migrated to the new Console, and Shipchandler said Twilio has seen more than a 90% uplift in conversion compared with the prior experience.
Wyatt said the conversion metric reflects reduced friction in the process of signing up, launching initial campaigns and establishing workloads. While the Console had little impact on multi-product revenue during the second quarter because of its recent launch, Twilio expects its free credits and integrated product experience to support future cross-sell and upsell activity.
Carrier Fees Pressure Margins but Not Profit Dollars Twilio incurred $71 million in incremental U.S. carrier pass-through fees during the quarter. The fees reduced non-GAAP gross margin to 49.1%, down 160 basis points from a year earlier and 50 basis points sequentially. Without the incremental fees, non-GAAP gross margin would have increased 60 basis points year over year and 30 basis points from the prior quarter, Viggiano said.
Non-GAAP operating margin was 19%, up 100 basis points year over year but down 80 basis points sequentially. The carrier fees represented an estimated 90-basis-point headwind to the quarterly operating margin. Twilio said the fees do not affect gross-profit dollars, operating-income dollars or free-cash-flow dollars, though they affect reported margin rates and create cost pressure for customers, particularly smaller businesses.
GAAP income from operations was $85 million and included a $33 million prepaid asset impairment. GAAP net income also benefited from a one-time, non-cash $944 million release of a valuation allowance against certain U.S. federal and state deferred tax assets. Twilio said neither item affected its non-GAAP results.
Raised Full-Year Outlook For the third quarter, Twilio initiated revenue guidance of $1.505 billion to $1.515 billion, representing reported growth of 16% to 16.5% and organic growth of 11% to 12%. The outlook includes an expected $56 million in incremental U.S. carrier fees.
Full-year organic revenue growth guidance was raised to 13% to 13.5%, from 9.5% to 10.5% previously. Full-year reported revenue growth guidance was raised to 18% to 18.5%, from 14% to 15% previously. Full-year non-GAAP income from operations guidance was raised to $1.135 billion to $1.155 billion. Full-year free-cash-flow guidance was also raised to $1.135 billion to $1.155 billion. Twilio expects full-year non-GAAP gross-profit growth to be similar to its organic revenue growth rate. The company’s full-year outlook assumes about $250 million of incremental U.S. carrier pass-through revenue. It also expects those fees, all else equal, to lower its full-year 2026 non-GAAP gross margin by about 210 basis points compared with 2025.
During the quarter, Twilio repurchased $66 million of shares and had roughly $800 million remaining under its current authorization. Shipchandler said the company views AI-related demand as being in “very early innings,” with the most visible activity currently in voice, while expecting AI-enabled interactions to expand across additional channels over time.
About Twilio (NYSE:TWLO)Twilio Inc NYSE: TWLO is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio's platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.
The company's product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Twilio Inc. (TWLO) Q2 2026 Earnings Call August 6, 2026 5:00 PM EDT
Company Participants
Rodney Nelson - Vice President of Investor Relations
Khozema Shipchandler - CEO & Director
Aidan Viggiano - Chief Financial Officer
Thomas Wyatt - Chief Revenue Officer
Conference Call Participants
Aleksandr Zukin - Wolfe Research, LLC
Taylor McGinnis - UBS Investment Bank, Research Division
Samad Samana - Jefferies LLC, Research Division
Elizabeth Elliott - Morgan Stanley, Research Division
Carolyn Valenti - Goldman Sachs Group, Inc., Research Division
Jackson Ader - KeyBanc Capital Markets Inc., Research Division
Nicholas Altmann - BTIG, LLC, Research Division
James Wood - TD Cowen, Research Division
Sitikantha Panigrahi - Mizuho Securities USA LLC, Research Division
William Power - Robert W. Baird & Co. Incorporated, Research Division
Joshua Reilly - Needham & Company, LLC, Research Division
Arjun Bhatia - William Blair & Company L.L.C., Research Division
James Fish - Piper Sandler & Co., Research Division
Koji Ikeda - BofA Securities, Research Division
J. Lane - Stifel, Nicolaus & Company, Incorporated, Research Division
Andrew King - Rosenblatt Securities Inc., Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to Twilio Inc.'s Second Quarter 2026 Earnings Conference Call.
[Operator Instructions]
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Rodney Nelson, Vice President of Investor Relations. Please go ahead.
Rodney Nelson
Vice President of Investor Relations
Good afternoon, everyone, and thank you for joining us for Twilio's Second Quarter 2026 Earnings Conference Call. Joining me today are Khozema Shipchandler, Chief Executive Officer; Aidan Viggiano, Chief Financial Officer; and Thomas Wyatt, Chief Revenue Officer.
As a reminder, we will disclose non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings presentation posted on our IR website at investors.twilio.com. We will also make forward-looking statements on this
Twilio ve 2. čtvrtletí překonala odhady tržeb i upraveného zisku na akcii, když vykázala tržby 1,50 miliardy USD a upravený zisk 1,47 USD na akcii, a zvýšila výhled růstu tržeb pro celý rok 2026 na 18 % až 18,5 %.
Twilio Inc (NYSE:TWLO) reported second-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter.
Twilio shares are trending today.. Where is TWLO stock headed? Twilio Q2 Earnings HighlightsTwilio posted second-quarter revenue of $1.50 billion, beating analyst estimates of $1.43 billion, according to Benzinga Pro. The cloud-based customer engagement company reported adjusted earnings of $1.47 per share for the quarter, beating estimates of $1.32 per share.
Total revenue was up 22% on a year-over-year basis. Operating cash flow was $372.4 million in the quarter and free cash flow totaled $352.6 million.
“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,” said Khozema Shipchandler, CEO of Twilio.
“In a world where humans and AI agents increasingly work side by side, Twilio is providing the infrastructure to power them both.”
Twilio said it repurchased $66 million of its common stock in the second quarter. The company had $826 million remaining under its buyback as of June 30.
What’s Next For Twilio?Twilio sees third-quarter revenue in the range of $1.505 billion to $1.515 billion. The company anticipates third-quarter adjusted earnings of $1.42 to $1.47 per share.
Twilio also raised its full-year 2026 revenue growth guidance from a range of 14% to 15% to a new range of 18% to 18.5%.
Twilio’s management team will further discuss the quarter on an earnings call scheduled for 5 p.m. ET.
Twilio Stock Surges After The BellTWLO Price Action: Twilio shares were up 16.47% in after-hours, trading at $225.41 at the time of publication on Thursday, according to Benzinga Pro.
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Twilio (NYSE:TWLO – Get Free Report) is expected to be posting its Q2 2026 results after the market closes on Thursday, August 6th. Analysts expect the company to announce earnings of $1.32 per share and revenue of $1.4310 billion for the quarter. Investors may review the information on the company’s upcoming Q2 2026 earning summary page for the latest details on the call scheduled for Thursday, August 6, 2026 at 5:00 PM ET.
Twilio Price Performance Shares of NYSE TWLO opened at $193.85 on Wednesday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.66 and a current ratio of 4.66. The firm has a fifty day moving average of $202.37 and a 200 day moving average of $160.04. The firm has a market cap of $29.42 billion, a PE ratio of 302.89, a PEG ratio of 3.91 and a beta of 1.37. Twilio has a one year low of $91.84 and a one year high of $238.48.
Analyst Ratings Changes Several research analysts recently weighed in on the stock. Morgan Stanley restated an “overweight” rating and set a $200.00 price target on shares of Twilio in a research report on Friday, May 1st. Oppenheimer increased their target price on Twilio from $200.00 to $235.00 and gave the company an “outperform” rating in a report on Monday, May 18th. Bank of America raised Twilio from an “underperform” rating to a “buy” rating and lifted their price target for the stock from $110.00 to $190.00 in a research note on Wednesday, April 22nd. BTIG Research boosted their price target on Twilio from $215.00 to $245.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings upgraded Twilio from a “sell (d+)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. Four equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $220.59.
Get Our Latest Report on TWLO
Insider Buying and Selling In related news, CFO Aidan Viggiano sold 8,528 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $205.43, for a total value of $1,751,907.04. Following the completion of the sale, the chief financial officer owned 109,724 shares of the company’s stock, valued at approximately $22,540,601.32. This trade represents a 7.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erika Rottenberg sold 2,000 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $199.01, for a total value of $398,020.00. Following the completion of the sale, the director directly owned 30,995 shares of the company’s stock, valued at $6,168,314.95. This trade represents a 6.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,802,480 shares of company stock valued at $341,620,487 over the last ninety days. 0.21% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Twilio A number of institutional investors have recently made changes to their positions in the stock. State Street Corp lifted its stake in Twilio by 47.8% during the third quarter. State Street Corp now owns 5,879,395 shares of the technology company’s stock worth $588,469,000 after purchasing an additional 1,900,551 shares in the last quarter. Invesco Ltd. boosted its holdings in Twilio by 56.9% during the 4th quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company’s stock valued at $448,276,000 after acquiring an additional 1,142,309 shares during the period. Royal Bank of Canada grew its position in Twilio by 3.9% in the 4th quarter. Royal Bank of Canada now owns 2,944,377 shares of the technology company’s stock valued at $418,808,000 after acquiring an additional 110,941 shares in the last quarter. Alyeska Investment Group L.P. grew its position in Twilio by 39.7% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,643,859 shares of the technology company’s stock valued at $264,624,000 after acquiring an additional 750,951 shares in the last quarter. Finally, SRS Investment Management LLC purchased a new stake in Twilio during the fourth quarter worth about $257,494,000. 84.27% of the stock is currently owned by institutional investors and hedge funds.
About Twilio (Get Free Report)
Twilio Inc (NYSE: TWLO) is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio’s platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.
The company’s product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.
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Twilio (TWLO) v poslední obchodní seanci oslabilo o 4,39 % na 196,22 USD, zatímco S&P 500 vzrostlo o 0,89 %. Investoři sledují výsledky, které firma oznámí 6. srpna 2026.
Twilio (TWLO - Free Report) ended the recent trading session at $196.22, demonstrating a -4.39% change from the preceding day's closing price. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow experienced a rise of 0.74%, and the technology-dominated Nasdaq saw an increase of 1.29%.
Shares of the company have appreciated by 11.76% over the course of the past month, outperforming the Computer and Technology sector's loss of 6.6%, and the S&P 500's loss of 0.63%.
The upcoming earnings release of Twilio will be of great interest to investors. The company's earnings report is expected on August 6, 2026. The company is expected to report EPS of $1.32, up 10.92% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.42 billion, indicating a 15.84% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.64 per share and revenue of $5.81 billion. These totals would mark changes of +15.34% and +14.61%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Twilio. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Twilio currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Twilio is currently exchanging hands at a Forward P/E ratio of 36.4. This represents a premium compared to its industry average Forward P/E of 19.97.
Investors should also note that TWLO has a PEG ratio of 2.02 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Jefferies čeká, že Twilio ve 2. čtvrtletí překoná odhady tržeb i provozního zisku, ale varuje, že vysoké ocenění a silné pozice investorů mohou omezit další růst. Trh bude sledovat hlavně výhled a udržení růstu hrubého zisku v rozmezí středních desítek procent.
Twilio Inc (NYSE:TWLO) is expected to deliver second quarter results that exceed expectations on revenue and operating income, with investors likely to focus on whether the communications software company's gross profit growth can remain in the mid-teens during the second half of the year, according to Jefferies analysts.
Ahead of Twilio's August 6 earnings release, Jefferies wrote that it expects the company to post revenue and operating income above expectations, although it does not anticipate the same degree of outperformance as in the first quarter.
The firm added that while business fundamentals remain strong, the stock's premium valuation and heavy investor positioning could limit upside unless Twilio significantly raises its outlook.
Jefferies forecasts second-quarter revenue of $1.427 billion, up 16% year over year and broadly in line with consensus expectations and the company's guidance range of $1.42 billion to $1.43 billion.
The firm expects gross profit of $684 million, implying a gross margin of 47.9%, compared with consensus expectations of $690 million and a 48.3% margin. It projects operating income of $255 million, or a 17.9% operating margin, and earnings per share of $1.30, versus Wall Street expectations of $258 million in operating income and EPS of $1.33.
Jefferies expects gross profit dollar growth of 9.7% year over year, a moderation from the 16% growth reported in the first quarter as comparisons become more challenging.
Jefferies noted that investors will be looking for evidence that the broad-based momentum seen in the first quarter can continue, after growth was supported by stronger customer expansion, increased cross-selling and wider adoption of multiple products.
Key areas of focus include whether messaging growth remains resilient, whether voice growth accelerates alongside rising adoption of voice AI, continued strength in self-service and independent software vendor channels, and higher-margin software offerings such as Verify and branded messaging.
The firm also expects investors to assess whether Twilio's platform strategy, go-to-market improvements and AI-related product investments continue translating into sustainable growth beyond a single quarter.
Jefferies believes investors will also be watching for another increase to full-year guidance after the company raised its revenue outlook following first-quarter results. While the firm sees consensus forecasts as reasonable, it noted that many investors appear to be expecting organic revenue growth in the mid-to-high teens.
For the third quarter, Jefferies forecasts revenue of $1.459 billion, gross profit of $704 million, operating income of $266 million and earnings per share of $1.35.
Although Jefferies expects the company's fundamentals to continue improving, it noted that Twilio's strong share price performance this year has raised expectations, potentially making it harder for future earnings reports to drive further gains.
Shares of Twilio were down more than 4% on Tuesday at $196.
Twilio za 1. čtvrtletí vykázala růst tržeb o 20 %, ale výhled počítá jen s růstem o 15,5 % až 16,5 % ve 2. čtvrtletí a o 14 % až 15 % za celý rok 2026. P/E se pohybuje kolem 300.
Twilio (TWLO +2.32%) has enjoyed a strong start to the year but now finds itself in a 20% correction. Many companies use Twilio's platform to communicate with customers via text, video, artificial intelligence (AI) chatbots, and other capabilities. It's natural for stocks to take breathers after long runs, but a high P/E ratio offers some reason for concern.
Image source: Getty Images.
Twilio is a good company but a bad stock Twilio has good fundamentals, but it's hard to justify a stock with a P/E ratio hovering near 300. The company delivered 20% year-over-year revenue growth in the first quarter. Those sales come from a solid foundation, which includes more than 400,000 customers and 68% of Fortune 500 companies.
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However, growth investors aren't concerned only with the current foundation. They want revenue acceleration and enticing long-term growth prospects. If those are good, investors can more easily justify a stock that is trading near a 300 P/E ratio, but that isn't the case for Twilio.
The company anticipates only 15.5% to 16.5% year-over-year revenue growth in Q2 and 14% to 15% year-over-year revenue growth in full-year 2026. These aren't exciting numbers, especially when investors can choose from AI stocks that are delivering substantial growth rates well above the 14% to 15% growth rate Twilio expects to deliver throughout the year.
The agentic AI angle is worth monitoring Not everyone feels bearish about Twilio. Goldman Sachs gave it a $300 price target and cited Twilio's positioning in agentic AI infrastructure.
Twilio's list of top customer wins from its Q1 presentation includes several cases of agentic AI translating into more customer engagement, which bodes well for the bullish narrative. Twilio has formed the backbone for some customers' voice AI infrastructure, customer service chatbots, and AI agents for sales. Twilio CEO Khozema Shipchandler even touted the company as a "foundational infrastructure layer in the era of AI," demonstrating that it wants to capitalize on the opportunity.
However, the impact of agentic AI did not show up in guidance, which is a red flag. Leaders in the AI chip and memory cycle have regularly pounded the table with compelling guidance that shows growth rates much higher than Wall Street expected.
This isn't the first time investors got caught up in Twilio, thinking it could be a superstar stock. The company soared from $80 per share to over $400 per share in less than a year during the pandemic. Then the bubble burst, and Twilio is still down by roughly 60% from all-time highs.
Twilio's full-year guidance suggests that investors are overestimating the opportunity and may get burned again by the stock, especially if a short-term rally takes shape. If Twilio projected accelerated revenue growth rates for Q2 and beyond or had a more reasonable valuation, it would be easier to buy shares. However, neither of those is the case.
