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Twilio Inc. (TWLO) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript

Twilio (TWLO - Free Report) ended the recent trading session at $232.98, demonstrating a -3.12% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.29%.

The company's shares have seen an increase of 24.47% over the last month, surpassing the Computer and Technology sector's gain of 2.81% and the S&P 500's gain of 2.08%.

The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. It is anticipated that the company will report an EPS of $1.45, marking a 16% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.51 billion, up 16.15% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.88 per share and revenue of $5.96 billion. These totals would mark changes of +20.25% and +17.71%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 10.46% increase. Twilio is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 40.87 right now. This valuation marks a premium compared to its industry average Forward P/E of 21.

Also, we should mention that TWLO has a PEG ratio of 2.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Twilio (TWLO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Twilio currently has an average brokerage recommendation (ABR) of 1.43, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.43 approximates between Strong Buy and Buy.

Of the 28 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 78.6% and 7.1% of all recommendations.

Brokerage Recommendation Trends for TWLO

Check price target & stock forecast for Twilio here>>>

The ABR suggests buying Twilio, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is TWLO a Good Investment?Looking at the earnings estimate revisions for Twilio, the Zacks Consensus Estimate for the current year has increased 10.5% over the past month to $5.88.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Twilio. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Twilio may serve as a useful guide for investors.

TWLO daily chart shows first pullback after bullish flag breakout signal. Source: TradingView

Bull Flag Breakout Meets First Support Test A bullish flag pattern formed following the June high and a breakout of the pattern triggered two weeks ago after Q2 2026 earnings were reported, eventually driving TWLO to a new high of $258.35 last week. TWLO is now in its first pullback following the bullish flag breakout, reaching a low of $215.79 on Friday. This area therefore represents the first potential key pivot zone where buyers could re-emerge, and trigger renewed signs of strength and a second leg up following the flag breakout.

Key Support Zone Comes Into Focus The low of the pullback is testing support at the prior resistance zone defined by the downtrend line across the top of the triangle. This is classic bullish behavior if support holds and is followed by renewed upside momentum. Further, the 20-day moving average at $217.38 and the 61.8% Fibonacci retracement at $214.32 strengthen the potential for the zone to hold as support and complete the first pullback after a significant bullish trend continuation signal. Given TWLO’s history of former resistance becoming support, a successful defense of this zone would reinforce that bullish behavior.

Key Takeaways Plexus jumped 93.3% over the past year before sliding 6.4% in the past week, with a Momentum Score of B.Twilio surged 124.6% over the past year but fell 9.3% in the past week and carries a Momentum Score of A.MACOM gained 142.1% in the past year, then slipped 2.4% over the past week, with a Momentum Score of B. The broader U.S. equity markets declined over the past three trading days as oil prices climbed and sovereign bond yields surged to multi-decade highs. The downtrend was largely triggered by stalled negotiations between the United States and Iran, leading to heightened uncertainty in the region. With President Trump further claiming that the naval blockade in the Strait of Hormuz will continue, any possible solution to the stalemate appeared to be fading.

However, solid economic growth and a relatively strong earnings season portrayed a silver lining for stocks. Amid the vagaries of the market, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks, like Plexus Corp. PLXS, Twilio Inc. (TWLO - Free Report) and MACOM Technology Solutions Holdings, Inc. MTSI, when value or growth investing fails to generate the desired profits.

    This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.

Momentum strategies have been known to be alpha-generative over a long period and across market stages. Therefore, this strategy is quite tricky to implement, as detecting these trends is not easy. Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from long-term price momentum and a short-term pullback in price.

Screening Parameters for Momentum Anomaly StocksPercentage Change in Price (52 Weeks) = Top #50: This selects the top 50 stocks with the best percentage price change over the last 52 weeks. This parameter ensures we get the best stocks that have appreciated steadily over the past year.

Percentage Change in Price (1 Week) = Bottom #10: From the above 50 stocks, we then choose those that are also among the 10 worst performers over a short one-week period. This parameter picks the ones that have witnessed a short-term pullback in price.

Zacks Rank #1: Stocks sporting a Zacks Rank #1 (Strong Buy) have a proven history of outperformance irrespective of the market conditions. You can see the complete list of today’s Zacks #1 Rank stocks here.

Momentum Style Score of B or Better: A top Momentum Style Score knocks out a lot of the screening process, as it takes into account several factors that include volume change and performance relative to its peers. It indicates when the timing is best to grab a stock and take advantage of its momentum with the highest probability of success. Stocks with a Momentum Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), handily outperform other stocks.

Current Price Greater Than $5: The stocks must all be trading at a minimum of $5.

Market Capitalization = Top #3000: We have chosen stocks that are among the top 3000 in terms of market value to ensure the stability of price.

Average 20-Day Volume Greater Than 100,000: A substantial trading volume ensures that these stocks are easily tradable.

Here are three of the seven stocks that made it through this screen:

Neenah, WI-based Plexus is a provider of electronic contract manufacturing services to original equipment manufacturers (OEMs) in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense sectors. The company provides most of the manufacturing services on a turnkey basis. Plexus also provides after-market services to support customers in all regions where it operates.

The stock has gained a stellar 93.3% over the past year but lost 6.4% over the past week. Plexus has a Momentum Score of B.

Headquartered in San Francisco, Twilio provides a cloud-based customer engagement platform that enables developers and businesses to build, scale and operate real-time communications within software applications. The company offers highly customizable application programming interfaces, or APIs, for messaging, voice, email, video, authentication and identity. It also provides software products for digital engagement centers, marketing campaigns and customer data management. These capabilities allow customers to embed communications directly into applications and websites and manage interactions across the customer journey.

The stock has surged 124.6% over the past year but declined 9.3% over the past week. Twilio has a Momentum Score of A.

Based in Lowell, MA, MACOM is a provider of power analog semiconductor solutions to varied markets. The company develops and produces analog radio frequency (RF), microwave and millimeter wave semiconductor devices, and components for applications in optical, wireless and satellite networks.

The stock has surged 142.1% in the past year but declined 2.4% in the past week. MACOM has a Momentum Score of B.

Andrew Stafman, Director at Twilio Inc. (TWLO +2.46%), sold ~500,000 shares of Class A Common Stock on August 12, 2026. SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$123.5 millionShares sold (indirectly held)~500,000Post-transaction shares~133,000Post-transaction shares (directly held)13,492Post-transaction shares (indirectly held)~120,000Post-transaction value~$32.9 millionTransaction value based on SEC Form 4 weighted average sale price ($247.08); post-transaction value based on August 12, 2026 market close ($246.62).

Key questionsWhat is the significance of this 79% reduction in holdings?
The disposal of ~500,000 shares represents a substantial liquidation of the insider's equity position, though Andrew Stafman retains a remaining interest of ~133,000 shares across both direct and indirect accounts.What are the details of the indirect ownership structure for these shares?
The shares were held through a series of entities including Sachem Head Capital Management LP, Uncas GP LLC, Sachem Head GP LLC, and the Sachem Head Funds, with Scott Ferguson and Andrew Stafman sharing potential beneficial ownership.How did the stock perform leading up to this transaction?
The sale was executed at $247.08 per share, occurring after the stock price appreciated 159% over the 12-month period ending on the August 12, 2026 transaction date.What is the current insider ownership level after this sale?
Following this transaction, the total direct and indirect ownership reported by Andrew Stafman represents approximately 0.0880% of the company's outstanding shares.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$255.95Market Capitalization$39.3 billionRevenue (TTM)$5.6 billionNet Income (TTM)$1.1 billionCompany SnapshotTwilio provides a comprehensive cloud-based communications platform with a robust suite of application programming interfaces (APIs) that enable developers to integrate voice, messaging, and other customer engagement capabilities directly into their software applications.The company generates revenue through a consumption-based model where customers pay for API usage and communications services, allowing enterprises and developers to scale their customer engagement solutions without significant upfront infrastructure investments.Twilio serves a diverse customer base spanning startups, mid-market enterprises, and Fortune 500 companies across both U.S. and international markets who require scalable, programmable communications infrastructure for customer engagement.Twilio is a market-leading provider of cloud communications infrastructure, serving over 5,500 employees and commanding a $39.3 billion market capitalization. The company has demonstrated significant growth momentum, with TTM revenue of $5.6 billion and net income of $1.1 billion, reflecting strong profitability and operational leverage. Twilio's competitive advantage derives from its developer-centric platform architecture, extensive API ecosystem, and global scale, positioning it as a critical infrastructure provider for enterprises seeking to embed sophisticated communications capabilities into their customer engagement strategies.

What this transaction means for investorsInsiders typically do not reveal why they decide to sell shares of their company, and Stafman’s sale of Twilio stock might leave investors scratching their heads.

The company has successfully leveraged AI into an asset, allaying concerns that AI might supplant the SaaS stock. Also, the leadership of Khozema Shipchandler, who became CEO in early 2024, seems to have reinvigorated the stock.

However, as previously mentioned, Stafman sold 79% of his shares. Admittedly, the sale has come after a 176% gain in the stock price over the last year, an indication he might be merely locking in some profits.

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Still, it is possible that Stafman may think Twilio stock has become overvalued. The aforementioned $1.1 billion profit over the last 12 months, but most of that came from a $980 million income tax benefit. That probably means that investors should multiply Twilio’s 36 P/E ratio by more than 10 to get its true earnings multiple.

Ultimately, its growth does not necessarily undermine Twilio’s long-term investment thesis. Still, given its recent gains and a rising valuation, treating Stafman’s share sale as a bearish signal might be wise in the near term.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Twilio (TWLO - Free Report) .

Twilio currently has an average brokerage recommendation (ABR) of 1.43, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.43 approximates between Strong Buy and Buy.

Of the 28 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 78.6% and 7.1% of all recommendations.

Brokerage Recommendation Trends for TWLO

Check price target & stock forecast for Twilio here>>>

The ABR suggests buying Twilio, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is TWLO a Good Investment?Looking at the earnings estimate revisions for Twilio, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $5.68.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Twilio. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Twilio may serve as a useful guide for investors.

SAN FRANCISCO--(BUSINESS WIRE)--Twilio (NYSE: TWLO), the infrastructure for customer engagement in the AI era, today announced that it will participate in the following investor events: Vice President of Investor Relations Rodney Nelson will participate in a fireside chat at the Canaccord Genuity Growth Conference on Wednesday, August 12, 2026 at 5:30 a.m. (PT) / 8:30 a.m. (ET). Vice President Field CTO Andy O'Dower will participate in a fireside chat at the Stifel Tech Executive Summit 2026 on.

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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 (TWLO - Free Report) ) shares have surged to a new all-time high of $254 a share after the cloud communications company delivered a strong Q2 report yesterday evening, highlighted by accelerating organic growth, robust cash generation, and another increase to its full-year outlook.

TWLO has soared 30% in Friday's trading session following the results, extending what had already been a strong run for the customer-engagement software provider.

The rally reflects growing optimism that Twilio's improved execution, expanding profitability and positioning in communications infrastructure for artificial intelligence applications can sustain its recent momentum.

Still, after such a sharp post-earnings move, investors have to decide whether Twilio's improving fundamentals justify chasing the rally or whether the stock's valuation now warrants more caution.

Image Source: Zacks Investment Research

Twilio's Q2 Results Easily Beat ExpectationsTwilio reported Q2 revenue of roughly $1.5 billion, increasing 22% from the year-ago period and topping estimates of $1.42 billion by 5%. Organic revenue growth reached 17%, showing a notable acceleration in Twilio’s underlying business.

Adjusted earnings came in at $1.47 per share, up more than 23% from $1.19 in the prior-year quarter and beating Q2 EPS expectations of $1.32 by 11%.

Profitability also continued to improve. Non-GAAP income from operations increased 29% year over year to $284.6 million, translating into a 19% operating margin compared with 18% a year earlier. Furthermore, GAAP operating income more than doubled to $84.5 million from $37 million in the prior-year period.

The combination of faster sales growth and expanding operating profits is particularly encouraging. To that point, Twilio spent the past several years transitioning from a growth-at-all-costs story toward one emphasizing profitable expansion, and the latest quarter provides further evidence that those efforts are paying off.

Image Source: Zacks Investment Research

Twilio’s Cash Flow Is Becoming a Major StrengthTwilio's cash generation was another highlight from the quarter.

Net cash provided by operating activities reached $372.4 million, while free cash flow climbed to $352.6 million from $263.5 million in Q2 2025. Free cash flow represented more than 23% of quarterly revenues.

That improving cash profile gives Twilio considerably more flexibility to invest in its platform while returning capital to shareholders.

The company repurchased $66 million of its common stock during the second quarter and has now completed approximately $1.2 billion of repurchases under its $2 billion authorization, leaving $826 million available as of the end of June.

Meanwhile, customer spending trends strengthened. Twilio's Dollar-Based Net Expansion Rate (DBNER) improved to 116% from 108% in the year-ago quarter, suggesting existing customers are expanding their spending at a healthier pace.

Raised Guidance Adds Fuel to TWLO's RallyPerhaps more important than the second-quarter beat was management's increasingly optimistic outlook.

For the third quarter, Twilio expects revenues between $1.505 billion and $1.515 billion, representing 16%-16.5% growth. Organic revenue growth is projected at 11%-12%. Management also expects non-GAAP operating income of $285-$295 million and adjusted earnings of $1.42-$1.47 per share.

Twilio also substantially increased its full-year expectations for fiscal 2026.

Management now projects reported revenue growth of 18%-18.5%, up sharply from its previous forecast of 14%-15%. Organic revenue growth is expected to reach 13%-13.5%, compared with the prior forecast of 9.5%-10.5%.

Twilio increased its non-GAAP operating income forecast to $1.135-$1.155 billion from $1.08-$1.1 billion and raised its free cash flow outlook to the same $1.135-$1.155 billion range.

Accelerating growth and upward revisions to profitability and cash-flow expectations help explain why investors reacted so enthusiastically to the report, with Twilio’s outlook coming in pleasantly above Wall Street’s forecast.  

AI Opportunity Strengthens Twilio's Growth StoryArtificial intelligence represents another potential catalyst for Twilio.

The company is positioning its communications infrastructure to connect businesses not only with human customers but increasingly with AI agents. Twilio's platform spans messaging, voice, email and customer data, potentially giving it an important role as businesses deploy AI-powered customer-service and engagement applications.

Voice appears particularly promising. Recent industry analysis points to strong growth in Twilio's voice business and increasing traction for AI-powered communications products. The opportunity is significant because conversational AI applications still need communications infrastructure to connect agents with customers through phone calls, messaging, and other channels.

Rather than AI simply threatening traditional software providers, Twilio could emerge as one of the infrastructure beneficiaries if AI agents substantially increase the volume of digital interactions between companies and their customers.

Should Investors Chase TWLO After the Surge?The biggest concern following Q2 isn't necessarily Twilio's fundamentals. It's the price investors now have to pay for them.

The rally pushed Twilio stock well above the current average analyst price target tracked by Zacks, which stands at $218.31, although individual targets range as high as $300. Of course, analyst price targets could be revised higher following Twilio’s better-than-expected Q2 report and raised guidance.

Image Source: Zacks Investment Research

That said, Twilio's valuation presents a somewhat mixed picture following the rally.

TWLO is trading at roughly 69X forward earnings, which is noticeably above its Zacks Internet-Software Industry average of about 31X. That premium suggests investors are paying heavily for Twilio's improving growth and earnings outlook.

However, the valuation looks considerably more reasonable from a sales perspective. TWLO is trading at 5X forward sales, which is near the Internet-Software industry's comparable multiple.

Image Source: Zacks Investment Research

Of course, there are other factors worth watching. Twilio's non-GAAP gross margin was 49% in Q2 compared with 51% a year earlier, despite an 18% increase in non-GAAP gross profit.

Growth comparisons could also become tougher going forward, meaning Twilio will need to demonstrate that its current acceleration can persist. After a 30% post-earnings rally, even solid execution may not be enough if investors start demanding another round of outsized beats and guidance increases.

Still, Twilio's investment case is substantially stronger when revenue acceleration, operating leverage, free cash flow and AI-related opportunities are considered together.

Bottom LineAlthough the 30% post-earnings surge makes TWLO less attractive from a valuation standpoint, Twilio's improving outlook, strong cash generation, accelerating organic growth and potentially expanding role in AI-driven communications support the longer-term bull case.

Investors chasing the stock immediately after such a dramatic move should recognize the possibility of near-term volatility. Nevertheless, Twilio stock is currently sporting a Zacks Rank #2 (Buy) based on what was already a pleasant trend of earnings estimate revisions.

For now, investors with a longer-term horizon may still want to consider TWLO after its Q2 breakout, although those concerned about chasing a sharp earnings-driven rally may prefer to build a position gradually or look for a more favorable entry point.

Twilio shares surged after the cloud communications company beat expectations and delivered record profitability and free cash flow. CEO Khozema Shipchandler joins Bloomberg to explain why AI is still only a modest contributor to revenue today, how Twilio's global communications infrastructure creates a competitive moat, and why he sees agentic AI as a long-term tailwind for the business.

Twilio shares are powering higher. What’s fueling TWLO momentum? Record Profitability and a Revenue Beat Set the ToneSecond-quarter revenue of $1.50 billion outpaced the $1.43 billion consensus and represented a 22% advance from the same period a year earlier. Adjusted earnings of $1.47 per share surpassed the $1.32 estimate by more than 11%. Operating cash flow reached $372.4 million while free cash flow totaled $352.6 million, both figures that CEO Khozema Shipchandler described as records for the company.

Shipchandler called the period a powerful new chapter for Twilio, pointing to another quarter of organic growth acceleration alongside record profitability and free cash flow. The company bought back $66 million of its own shares during the quarter and held $826 million in remaining repurchase capacity as of June 30.

Third-quarter revenue guidance of nearly $1.51 billion to $1.52 billion came in ahead of analyst expectations alongside adjusted earnings guidance of $1.42 to $1.47 per share. The company also significantly raised its full-year 2026 revenue growth outlook, lifting the range to 18% to 18.5% from a prior projection of 14% to 15%, a move that signals management’s growing confidence in the business trajectory through the remainder of the year.

Four Analysts Raise Price Targets Following the ResultsBTIG’s Nick Altmann held his Buy rating and raised his price target to $285 from $245. Needham’s Joshua Reilly kept his Buy and pushed his target to $280 from $250. Rosenblatt’s Catharine Trebnick maintained her Buy and lifted her objective to $275 from $230. Keybanc’s Jackson Ader maintained his Overweight rating and raised his target to $250 from $200.

TWLO Versus The Trend: Extended, But Still In ControlTwilio isn’t just trading above its trend gauges, but it’s sitting well above them. The stock is 20.4% above its 20‑day SMA, 18.7% above its 50‑day SMA, 35.1% above its 100‑day SMA, and 58.7% above its 200‑day SMA. That kind of distance signals a strong trend, but it also hints at vulnerability if the tape softens and fast money decides to lock in gains.

The longer‑term backdrop remains supportive. The 50‑day SMA is still above the 200‑day SMA after the golden cross in November 2025, which keeps the broader trend pointed higher. The near‑term tension comes from stretched momentum. RSI at 73.72 is firmly overbought, a reading that doesn’t guarantee a reversal but often precedes a pause, a pullback, or a choppy consolidation before the next move.

Key Resistance: $238.48 — sits at the 52‑week high zone where breakouts either accelerate or run into profit‑taking. Key Support: $203.27 — lines up near the 50‑day SMA, a common trend‑support area if the stock needs to cool off without breaking the larger uptrend. TWLO Shares Are BoomingTWLO Price Action: Twilio shares were up 29.11% at $249.44 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.

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Twilio (Twilio Inc (NYSE:TWLO)) shares opened about 18% higher on Friday after the communications software company reported second-quarter results that exceeded analyst expectations.

Twilio reported adjusted earnings of $1.47 per share for the second quarter, compared with analyst consensus estimates of $1.32 per share. Revenue reached $1.50 billion, up 22% year over year and above estimates of $1.43 billion. Organic revenue growth was 17%.

GAAP gross profit rose 20% year over year to $725.9 million, while non-GAAP gross profit increased 18% to $735.7 million. GAAP income from operations was $84.5 million, up 129% from a year earlier, while non-GAAP income from operations increased 29% to $284.6 million.

Twilio reported GAAP diluted earnings per share of $6.68, compared with $0.14 in the year-ago quarter. The company said the figure included a non-cash benefit of $5.91 per share from the release of a significant portion of the valuation allowance against its US deferred tax assets.

Non-GAAP net income was $234 million, compared with $1.19 in adjusted earnings per share in the second quarter of 2025.

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% year over year.

The company expects third-quarter non-GAAP income from operations of $285 million to $295 million and adjusted diluted earnings per share of $1.42 to $1.47.

“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 Khozema Shipchandler said in the company’s earnigs statement.

“At SIGNAL, we unveiled a revamped Twilio platform giving customers the building blocks they need to power rich, lifelong conversations. In a world where humans and AI agents increasingly work side by side, Twilio is providing the infrastructure to power them both.”

Sam Vadas and Nicole Petallides break down three of Friday morning's biggest earnings movers. Atlassian (TEAM) surges after beating expectations and issuing upbeat guidance, while Twilio (TWLO) rallies after topping quarterly estimates and raising its full-year outlook.

SAN FRANCISCO--(BUSINESS WIRE)--Twilio (NYSE: TWLO), the infrastructure for customer engagement in the AI era, reported financial results for its second quarter ended June 30, 2026. “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. “At SIGNAL, we unveiled a revamped Twilio platform giving customers the building blocks they need to power rich, lifelon.

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 Inc. (NYSE:TWLO) will release its second quarter earnings report after the closing bell on Thursday, Aug. 6.

Analysts expect the San Francisco, California-based company to report quarterly earnings of $1.32 per share, up from $1.19 per share in the year-ago period. The consensus estimate for Twilio’s quarterly revenue is $1.43 billion. It reported $1.23 billion last year, according to Benzinga Pro.

On April 30, Twilio reported better-than-expected first-quarter financial results and issued second-quarter guidance above estimates.

Twilio shares fell 0.4% to close at $193.22 on Wednesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying TWLO stock? Here’s what analysts think:

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Posted by Defense World Staff on Jul 28th, 2026

Castleark Management LLC acquired a new position in shares of Twilio Inc. (NYSE:TWLO – Free Report) in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 26,760 shares of the technology company’s stock, valued at approximately $3,367,000.

Several other large investors have also recently added to or reduced their stakes in TWLO. ABS Direct Equity Fund LLC acquired a new position in shares of Twilio during the first quarter valued at $189,000. Delta Global Management LP acquired a new stake in Twilio in the first quarter worth about $7,704,000. OMERS ADMINISTRATION Corp grew its position in Twilio by 23.5% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 8,781 shares of the technology company’s stock valued at $1,105,000 after buying an additional 1,670 shares in the last quarter. Cooper Creek Partners Management LLC bought a new position in Twilio in the 1st quarter valued at about $16,145,000. Finally, Renaissance Technologies LLC acquired a new position in Twilio during the 1st quarter valued at about $6,543,000. 84.27% of the stock is owned by institutional investors and hedge funds.

Twilio Price Performance TWLO opened at $194.28 on Tuesday. The stock has a market cap of $29.49 billion, a price-to-earnings ratio of 303.56, a PEG ratio of 3.81 and a beta of 1.36. The company has a current ratio of 4.66, a quick ratio of 4.66 and a debt-to-equity ratio of 0.13. Twilio Inc. has a 1 year low of $91.84 and a 1 year high of $238.48. The stock has a fifty day moving average price of $201.82 and a 200 day moving average price of $157.46.

Twilio (NYSE:TWLO – Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The technology company reported $1.50 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.23. Twilio had a net margin of 1.96% and a return on equity of 4.64%. The business had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter last year, the firm earned $1.14 EPS. Twilio’s revenue for the quarter was up 20.0% on a year-over-year basis. Twilio has set its Q2 2026 guidance at 2.500-2.600 EPS. Analysts forecast that Twilio Inc. will post 2.79 EPS for the current fiscal year.

Wall Street Analyst Weigh In A number of research firms recently commented on TWLO. Zacks Research upgraded shares of Twilio from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Weiss Ratings upgraded Twilio from a “sell (d+)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. Morgan Stanley reaffirmed an “overweight” rating and set a $200.00 price target on shares of Twilio in a research note on Friday, May 1st. Piper Sandler boosted their price objective on Twilio from $130.00 to $192.00 and gave the stock a “neutral” rating in a research note on Friday, May 1st. Finally, Wells Fargo & Company upped their price objective on Twilio from $200.00 to $225.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Four equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $219.23.

Read Our Latest Stock Report on Twilio

Insider Activity In other Twilio news, Director Erika Rottenberg sold 2,000 shares of the stock in a transaction on Monday, June 1st. The shares were 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 represents a 6.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Khozema Shipchandler sold 44,158 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $235.88, for a total transaction of $10,415,989.04. Following the completion of the sale, the chief executive officer owned 235,542 shares of the company’s stock, valued at approximately $55,559,646.96. The trade was a 15.79% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,803,980 shares of company stock worth $341,898,467 in the last 90 days. Insiders own 0.21% of the company’s stock.

About Twilio (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.

Featured Stories Five stocks we like better than Twilio AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding TWLO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Twilio Inc. (NYSE:TWLO – Free Report).

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Posted by Defense World Staff on Jul 28th, 2026

Caxton Associates LLP lessened its holdings in Twilio Inc. (NYSE:TWLO – Free Report) by 76.5% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,229 shares of the technology company’s stock after selling 10,505 shares during the quarter. Caxton Associates LLP’s holdings in Twilio were worth $406,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in TWLO. New York State Teachers Retirement System boosted its holdings in Twilio by 10.8% in the 4th quarter. New York State Teachers Retirement System now owns 116,494 shares of the technology company’s stock valued at $16,570,000 after purchasing an additional 11,370 shares in the last quarter. Fifth Third Bancorp raised its stake in shares of Twilio by 339.6% during the 4th quarter. Fifth Third Bancorp now owns 14,024 shares of the technology company’s stock worth $1,995,000 after buying an additional 10,834 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Twilio by 19.7% in the fourth quarter. Principal Financial Group Inc. now owns 596,438 shares of the technology company’s stock valued at $84,837,000 after purchasing an additional 98,092 shares in the last quarter. National Pension Service lifted its stake in Twilio by 184.4% in the 4th quarter. National Pension Service now owns 18,545 shares of the technology company’s stock valued at $2,638,000 after buying an additional 12,025 shares in the last quarter. Finally, Jefferies Financial Group Inc. purchased a new stake in shares of Twilio in the fourth quarter valued at $895,000. 84.27% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity In other news, Director Andrew Stafman sold 1,000,000 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $184.14, for a total value of $184,140,000.00. Following the sale, the director directly owned 620,000 shares of the company’s stock, valued at approximately $114,166,800. This trade represents a 61.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Aidan Viggiano sold 8,528 shares of the firm’s 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 $22,540,601.32. This represents a 7.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,803,980 shares of company stock valued at $341,898,467 in the last quarter. 0.21% of the stock is currently owned by corporate insiders.

Twilio Trading Up 1.5% Shares of TWLO opened at $194.28 on Tuesday. Twilio Inc. has a 1-year low of $91.84 and a 1-year high of $238.48. The business’s 50-day moving average price is $201.82 and its 200 day moving average price is $157.46. The company has a current ratio of 4.66, a quick ratio of 4.66 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $29.49 billion, a P/E ratio of 303.56, a P/E/G ratio of 3.81 and a beta of 1.36.

Twilio (NYSE:TWLO – Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The technology company reported $1.50 EPS for the quarter, topping analysts’ consensus estimates of $1.27 by $0.23. Twilio had a return on equity of 4.64% and a net margin of 1.96%.The firm had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.34 billion. During the same period last year, the company posted $1.14 EPS. The business’s quarterly revenue was up 20.0% compared to the same quarter last year. Twilio has set its Q2 2026 guidance at 2.500-2.600 EPS. Analysts expect that Twilio Inc. will post 2.79 earnings per share for the current year.

Analysts Set New Price Targets A number of equities research analysts have recently commented on TWLO shares. Bank of America raised Twilio from an “underperform” rating to a “buy” rating and lifted their price objective for the company from $110.00 to $190.00 in a research report on Wednesday, April 22nd. Citizens Jmp upped their price target on shares of Twilio from $210.00 to $250.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Weiss Ratings upgraded shares of Twilio from a “sell (d+)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th. Rosenblatt Securities reiterated a “buy” rating and issued a $230.00 price target on shares of Twilio in a research note on Thursday, June 18th. Finally, Stifel Nicolaus upgraded shares of Twilio from a “hold” rating to a “buy” rating and increased their price objective for the company from $175.00 to $260.00 in a research note on Thursday, July 9th. Four investment analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Twilio presently has an average rating of “Buy” and an average price target of $219.23.

Check Out Our Latest Stock Report on Twilio

Twilio Profile (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.

Featured Stories Five stocks we like better than Twilio AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight

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SAN FRANCISCO--(BUSINESS WIRE)--Research from Twilio (NYSE: TWLO), the infrastructure for customer engagement in the AI era, shows a stark perception gap in the public sector: while 88% of government organizations rate their citizen engagement as good or excellent, only 44% of citizens agree. The Connected Government Report (2026) shows that while public sector agencies are confident in their digital services, citizens report fewer tangible benefits from digital interactions than in previous yea.

Twilio (TWLO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned -2.6%, compared to the Zacks S&P 500 composite's +0.4% change. During this period, the Zacks Internet - Software industry, which Twilio falls in, has gained 7.3%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Twilio is expected to post earnings of $1.32 per share, indicating a change of +10.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.5% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $5.64 points to a change of +15.3% from the prior year. Over the last 30 days, this estimate has changed -0.8%.

For the next fiscal year, the consensus earnings estimate of $6.53 indicates a change of +15.8% from what Twilio is expected to report a year ago. Over the past month, the estimate has changed -0.5%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Twilio is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Twilio, the consensus sales estimate of $1.42 billion for the current quarter points to a year-over-year change of +15.8%. The $5.81 billion and $6.36 billion estimates for the current and next fiscal years indicate changes of +14.6% and +9.6%, respectively.

Last Reported Results and Surprise HistoryTwilio reported revenues of $1.41 billion in the last reported quarter, representing a year-over-year change of +20%. EPS of $1.5 for the same period compares with $1.14 a year ago.

Compared to the Zacks Consensus Estimate of $1.34 billion, the reported revenues represent a surprise of +4.93%. The EPS surprise was +18.11%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Twilio is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Twilio. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

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 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.