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Twilio (TWLO - Free Report) closed the most recent trading day at $253.63, moving -4.89% from the previous trading session. This change lagged the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw an upswing of 0.02%, while the tech-heavy Nasdaq depreciated by 2.6%.
Coming into today, shares of the company had lost 8.26% in the past month. In that same time, the Computer and Technology sector lost 3.87%, while the S&P 500 lost 0.03%.
Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. The company's upcoming EPS is projected at $1.46, signifying a 16.80% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.51 billion, indicating a 16.34% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.92 per share and a revenue of $5.98 billion, signifying shifts of +21.06% and +18.06%, respectively, from the last year.
Any recent changes to analyst estimates for Twilio should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. Twilio is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 45.08. This valuation marks a premium compared to its industry average Forward P/E of 20.59.
Meanwhile, TWLO's PEG ratio is currently 2.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Twilio (TWLO - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +16.8%.
Revenues are expected to be $1.51 billion, up 16.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.43% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Twilio?For Twilio, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.81%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Twilio will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Twilio would post earnings of $1.32 per share when it actually produced earnings of $1.47, delivering a surprise of +11.36%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Twilio appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsDiebold Nixdorf, Incorporated (DBD - Free Report) , another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $1.31 for the quarter ended September 2026. This estimate points to a year-over-year change of -5.8%. Revenues for the quarter are expected to be $966.05 million, up 2.2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Diebold Nixdorf, Incorporated has remained unchanged. Nevertheless, the company now has an Earnings ESP of -11.23%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Diebold Nixdorf, Incorporated will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Twilio (TWLO - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Twilio basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Twilio, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for TwilioFor the fiscal year ending December 2026, this company is expected to earn $5.92 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Twilio. Over the past three months, the Zacks Consensus Estimate for the company has increased 11.8%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Twilio to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
On CNBC’s “Halftime Report Final Trades,” Joshua Brown, co-founder and CEO of Ritholtz Wealth Management, picked Amazon.com Inc (NASDAQ:AMZN).
Amazon.com expanded its data center partnership with 3M Co. (NYSE:MMM) and received a warrant to buy about $521.4 million of 3M stock, with vesting tied to the hyperscaler’s purchases of data center products.
Kevin Simpson, founder and CEO of Capital Wealth Planning, named UnitedHealth Group Inc (NYSE:UNH) as his final trade.
Lending support to his choice, UnitedHealth, on Oct. 13, posted upbeat third-quarter results. UnitedHealth Group reported quarterly earnings of $4.69 per share which beat the analyst consensus estimate of $4.15 per share. The company reported quarterly sales of $112.694 billion which beat the analyst consensus estimate of $111.403 billion.
Don’t forget to check out our premarket coverage here
Jim Lebenthal, partner and chief market strategist at Cerity Partners, recommended eBay Inc (NASDAQ:EBAY).
Supporting his view, Morgan Stanley analyst Nathan Feather, on Oct. 12, maintained eBay with an Overweight rating and raised the price target from $127 to $132.
Joseph M. Terranova, senior managing director for Virtus Investment Partners, picked Twilio Inc (NYSE:TWLO).
BTIG analyst Nick Altmann, on Oct. 16, maintained Twilio with a Buy and raised the price target from $285 to $315.
Price Action:
Amazon shares gained 0.1% to close at $262.63 on Tuesday. Twilio shares rose 0.5% to close at $258.69. UnitedHealth shares gained 3% to settle at $419.26 on Tuesday. eBay shares climbed 0.6% to close at $121.19 during the session. Photo via Shutterstock
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Vontobel Holding Ltd. boosted its holdings in shares of Twilio Inc. (NYSE:TWLO – Free Report) by 18.2% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,493 shares of the technology company’s stock after buying an additional 2,074 shares during the period. Vontobel Holding Ltd.’s holdings in Twilio were worth $3,946,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors also recently made changes to their positions in TWLO. Royal Bank of Canada boosted its holdings in Twilio by 10.8% during the first quarter. Royal Bank of Canada now owns 3,261,235 shares of the technology company’s stock valued at $410,330,000 after purchasing an additional 316,858 shares in the last quarter. Pictet Asset Management Holding SA lifted its holdings in Twilio by 17.6% during the 1st quarter. Pictet Asset Management Holding SA now owns 2,331,471 shares of the technology company’s stock valued at $293,237,000 after purchasing an additional 349,131 shares during the last quarter. Atreides Management LP boosted its position in Twilio by 28.5% in the first quarter. Atreides Management LP now owns 921,602 shares of the technology company’s stock valued at $115,956,000 after buying an additional 204,656 shares in the last quarter. KBC Group NV increased its holdings in shares of Twilio by 1.4% during the first quarter. KBC Group NV now owns 790,548 shares of the technology company’s stock worth $99,466,000 after buying an additional 11,014 shares in the last quarter. Finally, First Trust Advisors LP raised its position in Twilio by 10.8% in the 1st quarter. First Trust Advisors LP now owns 721,734 shares of the technology company’s stock valued at $90,808,000 after purchasing an additional 70,154 shares during the last quarter. 84.27% of the stock is owned by institutional investors.
Analyst Upgrades and Downgrades Several research analysts recently issued reports on TWLO shares. KeyCorp upped their price target on shares of Twilio from $200.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. Jefferies Financial Group reiterated a “buy” rating and issued a $240.00 price target on shares of Twilio in a report on Friday, August 7th. Citigroup restated a “market outperform” rating on shares of Twilio in a research report on Thursday, August 27th. JPMorgan Chase & Co. boosted their price target on shares of Twilio from $260.00 to $335.00 and gave the stock an “overweight” rating in a research note on Thursday, October 8th. Finally, BTIG Research increased their price objective on shares of Twilio from $285.00 to $315.00 and gave the company a “buy” rating in a report on Friday. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $267.78.
Read Our Latest Research Report on TWLO Twilio Stock Performance TWLO opened at $243.80 on Monday. The company has a market capitalization of $37.44 billion, a price-to-earnings ratio of 33.96, a P/E/G ratio of 5.01 and a beta of 1.35. The business’s 50-day moving average price is $253.71 and its two-hundred day moving average price is $208.73. The company has a debt-to-equity ratio of 0.11, a current ratio of 4.62 and a quick ratio of 4.62. Twilio Inc. has a 1 year low of $104.50 and a 1 year high of $308.40.
Twilio (NYSE:TWLO – Get Free Report) last released its earnings results on Thursday, August 6th. The technology company reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.32 by $0.15. Twilio had a net margin of 20.61% and a return on equity of 5.09%. The business had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter last year, the firm earned $1.19 earnings per share. The firm’s revenue for the quarter was up 22.0% compared to the same quarter last year. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. Equities analysts expect that Twilio Inc. will post 3.12 EPS for the current fiscal year.
More Twilio News Here are the key news stories impacting Twilio this week:
Positive Sentiment: Stifel raised its price target for Twilio to $325 while maintaining a Buy rating, implying potential upside from recent trading levels. Stifel raises target to USD 325 for Twilio stock Positive Sentiment: Bank of America forecast strong appreciation for Twilio and reaffirmed its Buy rating. Stifel also reiterated its Buy recommendation, showing continued support among major brokerages. Bank of America Forecasts Strong Price Appreciation for Twilio Bank of America Reaffirms Buy Rating Neutral Sentiment: Analyst consensus remains optimistic, but coverage notes that sell-side recommendations and average brokerage ratings can be overly bullish and should not be used alone as an investment decision. Wall Street Bulls Look Optimistic About Twilio Neutral Sentiment: Twilio promoted its Voice AI technology through a lighthearted French culinary campaign. The announcement offers visibility for the platform but is unlikely to materially affect near-term valuation. Twilio Voice AI France Campaign Negative Sentiment: Twilio’s break below its 50-day moving average is being characterized as a bearish technical signal, increasing concerns about near-term momentum and likely contributing to the stock’s decreased performance. Twilio Flashes a Bearish Signal as It Slides Insider Buying and Selling at Twilio In other news, Director Andrew Stafman sold 500,000 shares of the stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $247.08, for a total value of $123,540,000.00. Following the transaction, the director directly owned 120,000 shares of the company’s stock, valued at $29,649,600. This represents a 80.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Khozema Shipchandler sold 14,442 shares of the firm’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $291.03, for a total transaction of $4,203,055.26. Following the sale, the chief executive officer owned 178,863 shares of the company’s stock, valued at $52,054,498.89. This trade represents a 7.47% 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 sold 538,818 shares of company stock valued at $134,833,645 in the last quarter. 0.21% of the stock is currently owned by insiders.
About Twilio (Free Report)
Twilio Inc (NYSE:TWLO) provides a cloud-based customer engagement platform that enables businesses to communicate with customers through software and application programming interfaces (APIs). Its services support messaging, voice, video, email, authentication, contact centers and other digital interactions across mobile and web applications.
The company’s products include programmable communications tools, Twilio SendGrid for email delivery, Twilio Verify for user authentication, Twilio Flex for cloud contact centers, and Twilio Segment for collecting and using customer data.
Further Reading Five stocks we like better than Twilio These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom
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What happened
Twilio Inc. (NYSE: TWLO) fell 10.9% to $243.555 by Oct 16, 2026 12:21 PM ET. No clear material negative catalyst appeared in the current sources reviewed, so the investment case still turns on whether faster organic growth and cash generation can outrun carrier costs and commodity pressure.
The previous regular-session close was $273.40, making the unrounded decline 10.916%. The current equity value was about $37.24 billion, well above the $500 million eligibility floor.
The issuer archive showed no same-day release, SEC submissions showed no current 8-K, 10-Q or 10-K, and exchange checks showed no TWLO halt. A same-day BTIG note maintained a Buy rating and raised its target to $315, which moved opposite the decline. A planned chief-executive stock sale happened October 5 under a February Rule 10b5-1 plan and was reported six days before the move.
This is a bounded search result, not proof that no information exists. The decline is not assigned a cause, and a lower price does not by itself strengthen the business.
Read more: Twilio (TWLO) stock analysis and investment case
How the business works
Twilio Inc. (NYSE: TWLO) supplies the software and network layer that lets businesses add messaging, voice, email, identity and customer-data functions to their own applications. Developers use APIs instead of building carrier connections, deliverability tools, fraud controls and compliance systems from scratch.
The core model is usage based. A customer sends a message, places a call, verifies an identity or triggers another interaction, and Twilio Inc. (NYSE: TWLO) earns revenue while paying network providers for delivery. The company also sells higher-level contact-center and customer-data software.
That architecture creates two possible sources of value. The first is scale across more than 180 countries and hundreds of thousands of businesses. The second is expansion inside existing customers: dollar-based net expansion reached 116% in the second quarter, up eight percentage points from a year earlier.
Management describes a broader strategy that joins communications, contextual data and AI orchestration. Its 2025 annual report estimated a $158 billion total addressable market by 2028. That is management's estimate, not an independently verified forecast, and Twilio Inc. (NYSE: TWLO) still has to convert the opportunity into profitable usage.
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Where Twilio Inc. (NYSE: TWLO) competes
The platform competes with private communications providers including Infobip and Bird, direct carrier relationships, internal engineering teams and broader cloud platforms. The technical choice is rarely just one API versus another; customers compare reliability, geographic reach, fraud controls, compliance, routing quality and total network cost.
Microsoft Corporation (NASDAQ: MSFT) and Amazon.com, Inc. (NASDAQ: AMZN) can bundle communications or contact-center functions with broader cloud contracts. Twilio Inc. (NYSE: TWLO) must justify its spread with better deliverability, developer tools and cross-channel orchestration rather than the lowest raw message price.
A March issuer release said the company had direct 10DLC and toll-free messaging connections across all major carriers in the United States and Canada. Direct connections can improve throughput and reliability, but they do not eliminate carrier fees or prevent customers from negotiating harder as their traffic grows.
The cleanest competitive evidence is customer behavior. Dollar-based net expansion above 100% suggests existing customers spent more in aggregate, but the metric can slow quickly if large accounts optimize traffic, shift channels or build direct connections.
The economics and valuation
Second-quarter revenue reached $1.499 billion, up 22% reported and 17% organically. GAAP gross profit rose 20% to $725.9 million, which works out to a 48.4% gross margin. That margin shows why carrier pricing matters: more usage does not automatically produce software-like economics.
Operating leverage improved. GAAP operating income was $84.5 million, up 129%, while operating cash flow was $372.4 million and free cash flow was $352.6 million. The reported $1.067 billion of quarterly GAAP net income included a $5.91-per-share noncash tax benefit, so it should not be treated as a recurring earnings run rate.
At the current equity value, investors are paying about 6.2 times annualized second-quarter revenue. The same equity value is about 32.5 times the $1.145 billion midpoint of 2026 free-cash-flow guidance. Both are equity-value ratios rather than enterprise-value multiples, and neither establishes fair value.
The balance sheet gives management room. Cash and short-term marketable securities totaled $2.66 billion at June 30, while current liabilities were $810.7 million. Twilio Inc. (NYSE: TWLO) also had $826 million remaining under its authorized repurchase program after buying $66 million of stock during the quarter.
The risks
The strongest counterargument is commoditization. If customers treat messaging and voice as interchangeable transport, private rivals, carrier connections and cloud bundles can force down price before Twilio Inc. (NYSE: TWLO) can remove cost.
Gross margin already reflects network pass-through economics. Mobile operators can raise fees, regulators can add registration requirements, and fraud or deliverability failures can create expenses that arrive faster than price increases. A 48.4% GAAP gross margin leaves less room for error than a pure subscription-software model.
Growth quality also needs scrutiny. Reported revenue growth included A2P and acquisition revenue, while organic growth was five percentage points lower. The third-quarter organic guide of 11% to 12% implies deceleration from the second quarter's 17%, even as reported growth guidance stays at 16% to 16.5%.
Finally, a 32.5 times equity-value-to-guided-free-cash-flow ratio still assumes the cash turnaround lasts. Stock-based compensation, acquisitions, network investment or renewed sales spending can reduce the per-share benefit even if headline free cash flow holds.
What's next
Twilio Inc. (NYSE: TWLO) is scheduled to report third-quarter results on October 29. The decisive numbers are organic revenue growth, dollar-based net expansion, GAAP gross margin, GAAP operating margin and free cash flow.
Management guided to $1.505 billion to $1.515 billion of third-quarter revenue, 11% to 12% organic growth and $285 million to $295 million of non-GAAP operating income. Full-year guidance calls for 13% to 13.5% organic growth and $1.135 billion to $1.155 billion of free cash flow.
The investment case remains mixed. Reaccelerating usage, 116% net expansion, positive GAAP operating income and strong cash generation support the platform thesis. Carrier costs, a sub-50% gross margin, lower third-quarter organic growth guidance and intense substitution pressure keep the moat unproven. The October 29 filing, rather than today's unexplained drop, is the next test.
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TWLO stock: the Twilio thesis, its status and the next test to watch
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Sources
Nasdaq real-time quote for Twilio Inc. (NYSE: TWLO) — Oct 16, 2026 12:09 PM ET price, prior-close comparison and market status.
Yahoo Finance regular-session chart for Twilio Inc. (NYSE: TWLO) — Independent current-price and previous-close crosscheck using the regular session only.
TradingView market data for Twilio Inc. (NYSE: TWLO) — Primary common-stock identity, exchange, intraday move and basic equity capitalization crosscheck.
Twilio Inc. (NYSE: TWLO) second-quarter results — Revenue, organic growth, dollar-based net expansion, operating income, cash flow, balance sheet, repurchases and third-quarter and full-year guidance.
Twilio Inc. (NYSE: TWLO) second-quarter Form 10-Q — Exact security identity, business economics, financial statements, network costs and operating risks.
Twilio Inc. (NYSE: TWLO) 2025 Form 10-K — Business model, product history, competition, customer usage, carrier-cost exposure, strategy and listing identity.
Twilio Inc. (NYSE: TWLO) 2025 annual report — Management's $158 billion 2028 addressable-market estimate and communications, contextual-data and AI strategy.
Twilio Inc. (NYSE: TWLO) direct-carrier connection announcement — March 24, 2026 description of direct 10DLC and toll-free connections across major U.S. and Canadian carriers.
Twilio Inc. (NYSE: TWLO) news-release archive — Checked through October 16; the latest listed release was October 8 and no same-day release appeared.
SEC submissions for Twilio Inc. (NYSE: TWLO) — No company 8-K, 10-Q or 10-K appeared during the October 9 through October 16 catalyst window.
BTIG analyst action on Twilio Inc. (NYSE: TWLO) — October 16 Buy reiteration and price-target increase to $315, reviewed because it moved opposite the decline.
Associated Press broader-market report — Nasdaq weakness tied to yield worries was much smaller than the TWLO decline and did not provide a clear company-specific catalyst.
Photo: San Francisco downtown view by Piotrus via Wikimedia Commons — Authentic August 2009 file photo of the downtown San Francisco skyline. It does not depict Twilio offices, staff or products. Cropped vertically to 16:9.
Photo license: Creative Commons Attribution-ShareAlike 3.0 — Piotrus, own work, CC BY-SA 3.0. The 16:9 crop remains under the same license.
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The full Twilio Inc. investment case, its status and the next test to watch live on the Twilio Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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 1.59, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.59 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 72.4% and 6.9% 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.
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.
Zacks Rank Should Not Be Confused With ABRAlthough 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.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
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.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
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.
Should You Invest in TWLO?Looking at the earnings estimate revisions for Twilio, the Zacks Consensus Estimate for the current year has increased 0.1% over the past month to $5.92.
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.
Twilio (TWLO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this company have returned +13.5% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Internet - Software industry, to which Twilio belongs, has gained 4.5% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
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.
Twilio is expected to post earnings of $1.46 per share for the current quarter, representing a year-over-year change of +16.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.
The consensus earnings estimate of $5.92 for the current fiscal year indicates a year-over-year change of +21.1%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.77 indicates a change of +14.4% from what Twilio is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
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).
Revenue Growth ForecastEven 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.
For Twilio, the consensus sales estimate for the current quarter of $1.51 billion indicates a year-over-year change of +16.3%. For the current and next fiscal years, $5.98 billion and $6.64 billion estimates indicate +18.1% and +11% changes, respectively.
Last Reported Results and Surprise HistoryTwilio reported revenues of $1.5 billion in the last reported quarter, representing a year-over-year change of +22%. EPS of $1.47 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $1.42 billion, the reported revenues represent a surprise of +5.35%. The EPS surprise was +11.36%.
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.
Farther Finance Advisors LLC boosted its position in shares of Twilio Inc. (NYSE:TWLO – Free Report) by 98.7% during the 3rd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 5,686 shares of the technology company’s stock after purchasing an additional 2,825 shares during the period. Farther Finance Advisors LLC’s holdings in Twilio were worth $1,663,000 at the end of the most recent reporting period.
Other large investors also recently added to or reduced their stakes in the company. CoreCap Advisors LLC grew its holdings in shares of Twilio by 40.2% during the 3rd quarter. CoreCap Advisors LLC now owns 990 shares of the technology company’s stock valued at $290,000 after acquiring an additional 284 shares in the last quarter. Artemis Investment Management LLP raised its holdings in shares of Twilio by 58.9% during the third quarter. Artemis Investment Management LLP now owns 588,018 shares of the technology company’s stock worth $171,972,000 after acquiring an additional 217,952 shares in the last quarter. Everhart Financial Group Inc. boosted its position in Twilio by 14.7% during the third quarter. Everhart Financial Group Inc. now owns 2,174 shares of the technology company’s stock valued at $636,000 after purchasing an additional 278 shares during the last quarter. Valeo Financial Advisors LLC boosted its position in Twilio by 10.5% during the third quarter. Valeo Financial Advisors LLC now owns 2,632 shares of the technology company’s stock valued at $770,000 after purchasing an additional 250 shares during the last quarter. Finally, Toth Financial Advisory Corp purchased a new position in Twilio in the third quarter valued at about $328,000. 84.27% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth A number of equities research analysts have recently weighed in on the company. Morgan Stanley reaffirmed an “overweight” rating and set a $261.00 price target on shares of Twilio in a research note on Friday, August 7th. KGI Securities assumed coverage on Twilio in a research note on Thursday, July 2nd. They issued an “outperform” rating and a $250.00 price target for the company. Rosenblatt Securities boosted their price target on Twilio from $275.00 to $290.00 and gave the company a “buy” rating in a research note on Tuesday, September 22nd. Mizuho set a $270.00 price objective on Twilio in a report on Wednesday, August 12th. Finally, Citigroup restated a “market outperform” rating on shares of Twilio in a report on Thursday, August 27th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $266.48.
View Our Latest Analysis on Twilio Twilio Stock Down 3.7% Shares of Twilio stock opened at $271.17 on Thursday. The stock has a market capitalization of $41.64 billion, a P/E ratio of 37.77, a PEG ratio of 5.77 and a beta of 1.35. The company has a quick ratio of 4.62, a current ratio of 4.62 and a debt-to-equity ratio of 0.11. The stock has a 50 day moving average price of $252.03 and a two-hundred day moving average price of $206.78. Twilio Inc. has a 12-month low of $104.50 and a 12-month high of $308.40.
Twilio (NYSE:TWLO – Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The technology company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.15. Twilio had a return on equity of 5.09% and a net margin of 20.61%. The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same period last year, the business posted $1.19 earnings per share. The firm’s revenue was up 22.0% compared to the same quarter last year. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. Equities analysts expect that Twilio Inc. will post 3.12 earnings per share for the current year.
Insider Transactions at Twilio In other news, CFO Aidan Viggiano sold 9,084 shares of the company’s stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $294.65, for a total value of $2,676,600.60. Following the sale, the chief financial officer directly owned 99,246 shares in the company, valued at approximately $29,242,833.90. This represents a 8.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 500,000 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $247.08, for a total value of $123,540,000.00. Following the completion of the transaction, the director directly owned 120,000 shares of the company’s stock, valued at approximately $29,649,600. The trade was a 80.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 538,818 shares of company stock valued at $134,833,645. Company insiders own 0.21% of the company’s stock.
About Twilio (Free Report)
Twilio Inc is a communications technology company that provides a cloud-based platform for businesses to engage with customers through digital channels. Its software and application programming interfaces (APIs) support communications capabilities such as voice calling, messaging, video, email, authentication and contact-center interactions.
The company’s offerings include programmable communications services, customer data and engagement tools, and contact-center solutions. Twilio also provides email services through SendGrid and customer data platform capabilities through Segment, which it acquired in 2020.
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Twilio (TWLO - Free Report) closed at $271.12 in the latest trading session, marking a -3.72% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.
The stock of company has risen by 16.28% in the past month, leading the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. The company is predicted to post an EPS of $1.46, indicating a 16.8% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.51 billion, indicating a 16.34% upward movement from the same quarter last year.
TWLO's full-year Zacks Consensus Estimates are calling for earnings of $5.92 per share and revenue of $5.98 billion. These results would represent year-over-year changes of +21.06% and +18.06%, respectively.
Any recent changes to analyst estimates for Twilio should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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. Over the past month, there's been a 0.06% rise in the Zacks Consensus EPS estimate. Twilio currently has a Zacks Rank of #2 (Buy).
Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 47.6. This signifies a premium in comparison to the average Forward P/E of 20.8 for its industry.
Investors should also note that TWLO has a PEG ratio of 3.04 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
On October 14, 2026, Twilio Inc TWLO shares fell 3.7% to a current price of $271.12, trading within a 52-week range of $104.50 to $308.40. The stock has experienced a remarkable 150.8% increase over the past year, yet the recent decline raises questions about its valuation amidst a volatile market.
GF Value™ verdict: TWLO is currently priced at $271.12, which is 106.0% above the GF Value™ estimate of $131.64, indicating it is significantly overvalued.GF Score™ of 67/100 suggests that Twilio is performing above average compared to its peers.Notable signal: Insiders have sold $619.0 million worth of shares over the past 12 months, with no buying activity.Is TWLO Overvalued or Undervalued?The GF Value™ estimate for Twilio Inc is $131.64, which implies that the stock is currently trading at a substantial premium of 106.0%. This significant overvaluation raises concerns regarding the margin of safety for potential investors. A margin of safety is crucial as it provides a buffer against potential downside risks, which are exacerbated by the current valuation level. Given that the GF Valuation label indicates Twilio is "Significantly Overvalued," investors may want to proceed with caution.
GF Value™ is an intrinsic-value estimate created by GuruFocus that draws from historical trading multiples, past growth performance, and future earnings potential. This valuation method helps to provide context for current stock prices in relation to their true worth. In the case of Twilio, the stark contrast between its current stock price and GF Value™ suggests that the market may be overly optimistic about the company’s future growth prospects, raising the risk of a correction.
How Does TWLO's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)37.7x309.3xForward P/E40.1xN/ATwilio's current P/E ratio of 37.7x is significantly below its 5-year median P/E of 309.3x, indicating that the stock is trading at a discounted valuation compared to its historical standards. However, the forward P/E of 40.1x suggests that analysts expect higher future earnings, which may not fully align with the indications from the GF Value™ verdict. This discrepancy implies that, while the P/E analysis shows a more favorable historical valuation, the GF Value™ review warns of potential overvaluation risks.
What Does TWLO's GF Score™ Tell Us?The GF Score™ measures a stock's overall quality and performance based on several key factors, including financial strength, profitability, growth potential, valuation, and momentum. Twilio's GF Score™ of 67/100 reflects an above-average performance, yet it also highlights areas of concern that warrant attention.
MetricRatingGF Score™67Financial Strength7/10Profitability4/10Growth8/10Valuation1/10Momentum6/10The strongest aspect of Twilio's GF Score™ is its growth rank of 8/10, indicating strong potential for future expansion. Conversely, the valuation rank of 1/10 is a red flag, confirming the concerns highlighted by the GF Value™ analysis. The financial strength rating of 7/10 suggests adequate stability, while the profitability rank of 4/10 indicates room for improvement in generating profits.
What Are Gurus and Insiders Doing with TWLO?Currently, seven gurus hold Twilio stock, with three increasing their positions and eight trimming their holdings in recent quarters. This mixed activity among institutional investors may reflect varying levels of confidence in Twilio's future performance. The lack of insider buying, contrasted with the substantial $619.0 million worth of insider selling over the past 12 months, raises concerns about management's confidence in the company's prospects. Such patterns can often indicate that insiders believe the stock price is overvalued or that they are cashing in on gains.
What This Means for InvestorsTaking into account the GF Value™ assessment, Twilio Inc TWLO appears to be significantly overvalued at its current price of $271.12 compared to the estimated fair value of $131.64. The high levels of insider selling and the low valuation rank underscore the risks associated with investing in Twilio at this time. For further details on Twilio’s performance and metrics, visit the Twilio Inc (TWLO) stock page.
Frequently Asked QuestionsWhat is TWLO's GF Score™?
Twilio's GF Score™ is 67/100, indicating that the stock is performing above average relative to its peers, but there are significant areas of concern, particularly in valuation.
Is TWLO overvalued or undervalued?
Based on the GF Value™ assessment, TWLO is overvalued, trading at 106.0% above its intrinsic value of $131.64.
What is TWLO's P/E ratio?
TWLO's P/E ratio is currently 37.7x, which is substantially below its 5-year median of 309.3x, indicating it is trading at a lower historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Twilio (TWLO - Free Report) , which belongs to the Zacks Internet - Software industry.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 14.74%.
For the last reported quarter, Twilio came out with earnings of $1.47 per share versus the Zacks Consensus Estimate of $1.32 per share, representing a surprise of 11.36%. For the previous quarter, the company was expected to post earnings of $1.27 per share and it actually produced earnings of $1.5 per share, delivering a surprise of 18.11%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Twilio lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Twilio has an Earnings ESP of +2.81% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 29, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Twilio Inc. (NYSE:TWLO – Get Free Report) has received a consensus rating of “Moderate Buy” from the twenty-eight ratings firms that are covering the firm, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating, twenty-two have issued a buy rating and two have issued a strong buy rating on the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $258.65.
A number of brokerages recently issued reports on TWLO. UBS Group lifted their target price on Twilio from $200.00 to $285.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Stifel Nicolaus set a $275.00 target price on Twilio in a report on Friday, August 7th. Wells Fargo & Company raised their target price on shares of Twilio from $225.00 to $275.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. Jefferies Financial Group restated a “buy” rating and set a $240.00 price target on shares of Twilio in a report on Friday, August 7th. Finally, Oppenheimer upped their price target on shares of Twilio from $235.00 to $275.00 and gave the company an “outperform” rating in a research report on Friday, August 7th.
Check Out Our Latest Research Report on Twilio
Twilio Trading Down 2.2% Twilio stock opened at $283.11 on Tuesday. The company has a debt-to-equity ratio of 0.11, a quick ratio of 4.62 and a current ratio of 4.62. The firm has a market cap of $43.48 billion, a price-to-earnings ratio of 39.43, a price-to-earnings-growth ratio of 5.94 and a beta of 1.35. Twilio has a 1 year low of $104.50 and a 1 year high of $308.40. The firm’s 50 day moving average price is $248.72 and its two-hundred day moving average price is $204.66. Twilio (NYSE:TWLO – Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.15. The company had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.43 billion. Twilio had a return on equity of 5.09% and a net margin of 20.61%. The firm’s revenue was up 22.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.19 earnings per share. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. On average, research analysts predict that Twilio will post 3.12 EPS for the current fiscal year.
Insider Buying and Selling In other Twilio news, CFO Aidan Viggiano sold 9,084 shares of Twilio stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $294.65, for a total transaction of $2,676,600.60. Following the transaction, the chief financial officer directly owned 99,246 shares in the company, valued at approximately $29,242,833.90. The trade was a 8.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 500,000 shares of the business’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $247.08, for a total transaction of $123,540,000.00. Following the sale, the director directly owned 120,000 shares in the company, valued at approximately $29,649,600. This trade represents a 80.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 538,818 shares of company stock valued at $134,833,645. Company insiders own 0.21% of the company’s stock.
Institutional Inflows and Outflows A number of institutional investors and hedge funds have recently modified their holdings of TWLO. SHP Wealth Management purchased a new position in shares of Twilio during the 4th quarter valued at $26,000. Osbon Capital Management LLC acquired a new position in shares of Twilio in the fourth quarter worth $30,000. Ascentis Independent Advisors acquired a new position in shares of Twilio in the first quarter worth $33,000. Continuum Advisory LLC purchased a new stake in shares of Twilio during the second quarter worth $33,000. Finally, Reflection Asset Management purchased a new stake in shares of Twilio during the fourth quarter worth $37,000. Hedge funds and other institutional investors own 84.27% of the company’s stock.
About Twilio (Get Free Report)
Twilio Inc is a communications technology company that provides a cloud-based platform for businesses to engage with customers through digital channels. Its software and application programming interfaces (APIs) support communications capabilities such as voice calling, messaging, video, email, authentication and contact-center interactions.
The company’s offerings include programmable communications services, customer data and engagement tools, and contact-center solutions. Twilio also provides email services through SendGrid and customer data platform capabilities through Segment, which it acquired in 2020.
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Twilio (TWLO - Free Report) ended the recent trading session at $282.66, demonstrating a -2.35% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq decreased by 0.44%.
Coming into today, shares of the company had gained 27.32% in the past month. In that same time, the Computer and Technology sector gained 4.85%, while the S&P 500 gained 2.36%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. On that day, Twilio is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 16.8%. At the same time, our most recent consensus estimate is projecting a revenue of $1.51 billion, reflecting a 16.16% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.91 per share and revenue of $5.98 billion. These totals would mark changes of +20.86% and +18.06%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Twilio. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Twilio is currently a Zacks Rank #2 (Buy).
Looking at valuation, Twilio is presently trading at a Forward P/E ratio of 48.96. This indicates a premium in contrast to its industry's Forward P/E of 20.96.
It's also important to note that TWLO currently trades at a PEG ratio of 3.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.21.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.
SAN FRANCISCO--(BUSINESS WIRE)--Twilio Inc. (NYSE: TWLO), the infrastructure for customer engagement in the AI era, today announced that its third quarter 2026 results will be released on Thursday, October 29, 2026, after market close. Twilio will host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) on Thursday, October 29, 2026 to discuss its results with the investment community. Investors and analysts can register for the webcast at https://edge.media-server.com/mmc/p/322yprpw, and the live webcast and replay will also be available on the Twilio Investor Relations website at https://investors.twilio.com. The replay will be available until 11:59 p.m. (ET) on October 29, 2027.
Twilio uses its investor relations website (https://investors.twilio.com), its X feed (@twilio) and its LinkedIn page as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Twilio
Twilio (NYSE: TWLO) is the infrastructure for customer engagement in the AI era. By combining global communications, memory, and AI orchestration with identity, governance, and observability, Twilio enables businesses to deliver continuous, contextual, personal, and secure conversations across every channel and participant—human or AI.
Across 180+ countries, hundreds of thousands of the most innovative companies—from the Fortune 500 to startups—and millions of developers, rely on Twilio’s global platform across messaging, voice, email, and beyond, to power trusted customer experiences that drive real results. For more information about Twilio visit www.twilio.com
Twilio Inc (NYSE:TWLO), the cloud communications company, has seen its shares rise 97% this year to new highs, leaving investors increasingly nervous ahead of third-quarter earnings, for which no date has been set.
Jefferies says investors are focused on three questions: whether gross profit dollar growth can accelerate further, how personal artificial intelligence (AI) assistants affect voice AI, and whether hyperscalers, the largest cloud providers, could compete with Twilio.
Gross profit dollar growth has accelerated from about 8% to about 18% over the past year, and the second-quarter beat of 7% was the highest in that time.
Several investors say growth must accelerate again in the third quarter to support the stock, and Jefferies expects 19% to be very achievable, with 20% or more possible.
Adding the same amount of gross profit dollars as in the second quarter would produce growth of 19%, even though quarter-on-quarter and year-on-year comparisons are tougher.
A stronger macro backdrop, continued growth in high-margin voice AI revenue and last year’s seasonal pattern, which showed a slight quarter-on-quarter improvement, could lift growth to 20% or better.
Personal AI assistants, particularly Muse and Instinct, have seen adoption surge recently, and their new calling ability has added to enthusiasm about fast voice AI volume growth.
No documentation confirms that Twilio supplies infrastructure to either assistant, but the analyst expects wider use of voice AI agents to benefit the company over the long term.
Microsoft’s recent introduction of a solution that competes directly with ElevenLabs, a key player in the voice AI technology stack, has revived concerns about competition from hyperscalers.
The analyst said Twilio’s value in voice AI extends beyond what ElevenLabs provides and does not see near-term risk, although it expects management to face questions about hyperscaler competition.
Twilio Inc. (NYSE:TWLO) stock is trading lower by almost 6% on Tuesday as traders fade a sharp run-up near fresh highs, even while risk appetite stays constructive across equities.
The pullback came despite a broadly positive session for equities. The Nasdaq gained 0.61%, while the S&P 500 rose 0.64%. The technology sector was also up 0.79%.
With the broader market and technology stocks trading higher, Twilio’s decline points more toward profit-taking after an extended rally.
Twilio also replaced Warner Bros. Discovery, Inc. (NASDAQ:WBD) in the S&P 500 index on Tuesday.
The index inclusion had provided another catalyst for a stock already trading near the top of its 52-week range.
On Sept. 25, HSBC analyst Sameer Lam downgraded Twilio, arguing that the stock had moved ahead of fundamentals amid speculation that the company could benefit from Meta’s Muse AI agent.
Twilio Technical AnalysisTwilio is still in a strong longer-term uptrend: the stock is trading 5.9% above its 20-day SMA ($267.81), 17.6% above its 50-day SMA ($241.16), and 59.7% above its 200-day SMA ($177.65).
That kind of separation often attracts profit-taking because price can “snap back” toward moving averages without breaking the bigger trend.
MACD is above its signal line and the histogram is positive, which points to improving momentum versus the prior downswing.
TWLO is sitting just under its 52-week high ($305.95) with the current price at $302.15, so traders are effectively battling over a breakout versus a double-top-style pause.
The golden cross that formed in November 2025 (50-day SMA above the 200-day SMA) keeps the longer-term trend bias pointed higher, but extended rallies often need consolidation to “digest” gains.
Key Resistance: $305.95 — the 52-week high zone that’s acting like an overhead ceiling Key Support: $267.81 — the 20-day SMA area that often becomes the first pullback “catch point” in strong uptrends Earnings and Analyst OutlookTwilio next major scheduled catalyst is its estimated Oct. 29 earnings report.
Wall Street expects EPS of $1.47, up from $1.25 a year earlier, on revenue of $1.51 billion versus $1.30 billion in the prior-year period.
Twilio trades at a premium price-to-earnings ratio of about 41.6 times. The stock carries a Buy rating with an average price forecast of $260.50.
Recent analyst actions include HSBC downgrading to Reduce with a forecast of $211 on Sept. 25, TD Cowen maintaining Buy while raising its forecast to $300 on Sept. 22 and Rosenblatt raising its forecast to $290 on Sept. 22.
Benzinga Edge RankingsThe Benzinga Edge scorecard for Twilio, highlights its strengths and weaknesses compared to the broader market:
Momentum: Bullish (Score: 98.73) — The stock’s trend strength remains a key pillar despite today’s pullback. Value: Neutral (Score: 11.19) — The score flags a stretched valuation profile, which can make the stock more sensitive to pullbacks near highs. Growth: Neutral (Score: 40.37) — Growth is supportive, but not so dominant that it overrides valuation and positioning risk. The Verdict: Twilio’s Benzinga Edge signal reveals a momentum-driven setup with valuation as the main trade-off. If momentum stays intact, dips can remain buyable, but the low Value score suggests breakouts may need clean execution to avoid sharp shakeouts.
TWLO Price Action: Twilio shares were down 5.61% at $284.03 at the time of publication on Tuesday, according to Benzinga Pro data.
Twilio (NYSE:TWLO – Get Free Report) and Indra Sistemas (OTCMKTS:ISMAY – Get Free Report) are both large-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership 84.3% of Twilio shares are held by institutional investors. 0.2% of Twilio shares are held by insiders. Comparatively, 0.3% of Indra Sistemas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility Twilio has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Indra Sistemas has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
Profitability This table compares Twilio and Indra Sistemas’ net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets Twilio 20.61% 5.09% 4.15% Indra Sistemas 7.12% 22.61% 4.57% Analyst Recommendations This is a summary of current recommendations and price targets for Twilio and Indra Sistemas, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Twilio 2 2 22 2 2.86 Indra Sistemas 0 1 1 0 2.50 Twilio presently has a consensus price target of $250.39, indicating a potential downside of 14.16%. Given Twilio’s stronger consensus rating and higher probable upside, research analysts plainly believe Twilio is more favorable than Indra Sistemas.
Valuation and Earnings This table compares Twilio and Indra Sistemas”s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Twilio $5.57 billion 8.04 $33.83 million $7.18 40.63 Indra Sistemas $6.17 billion 1.92 $493.10 million $1.47 22.77 Indra Sistemas has higher revenue and earnings than Twilio. Indra Sistemas is trading at a lower price-to-earnings ratio than Twilio, indicating that it is currently the more affordable of the two stocks.
Summary Twilio beats Indra Sistemas on 10 of the 15 factors compared between the two stocks.
About Twilio (Get Free Report)
Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
About Indra Sistemas (Get Free Report)
Indra Sistemas, S.A. operates as a technology and consulting company for aerospace, defense, and mobility business worldwide. The company operates through four segments: Defence, Air Traffic, Mobility, and Minsait. It offers Mova Consulting for planing and designing transport infrastructures; Mova Collect for ticketing, tolling, and back office applications; Mova Traffic for building traffic management and control solutions; Mova Protect for protection of businesses and people; Mova Experience; Mova Comms for connecting the transportation ecosystem with personalized communication solutions; Mova Care that provides infrastructure operation and maintenance, technology operation and maintenance, and transportation services operation and maintenance; and In-Mova Space, a technological mobility and infrastructure management platform. The company also provides Indra Air Automation; Indra Air Communication; Indra Air Navigation; Indra Air Surveillance; Indra Air Drones; Indra Air Information; and Indra Air Services for air traffic applications. In addition, the company offers defence and security solutions, including Platforms, defence systems, security, cyberdefence, space technologies applied to military operations, military and civilian training solutions, and logistics and maintenance services; and other technological solutions for public administration, industry and consumption, financial services, energy, and telco and media sectors. Indra Sistemas, S.A. was founded in 1921 and is based in Alcobendas, Spain.
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Twilio (TWLO - Free Report) closed at $300.91 in the latest trading session, marking a +2.15% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.66%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 1.05%.
Shares of the company witnessed a gain of 26.44% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.36%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.46, showcasing a 16.8% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.51 billion, indicating a 16.16% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.91 per share and a revenue of $5.98 billion, indicating changes of +20.86% and +18%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Twilio possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Twilio is at present trading with a Forward P/E ratio of 49.82. This represents a premium compared to its industry average Forward P/E of 19.59.
Meanwhile, TWLO's PEG ratio is currently 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TWLO's industry had an average PEG ratio of 1.17 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
What happened Twilio Inc. (NYSE: TWLO) Chief Financial Officer Aidan Viggiano sold 9,084 Class A common shares on 2026-09-30, the Form 4 shows. The shares sold at prices from $289.68 to $296.34 per share, for about $2.68 million in total. After the sale, Viggiano held 99,246 shares.
The filing says the shares were sold to cover statutory tax withholding obligations tied to restricted stock unit vesting. It also says the sale was mandated by Twilio's election under its equity incentive plans. The form was filed on 2026-10-02.
Key numbers Metric Latest Change Source Shares sold 9,084 shares SEC Form 4 Sale price range $289.68 to $296.34 per share SEC Form 4 Total sale value about $2.68 million SEC Form 4 Shares held after sale 99,246 shares SEC Form 4 Sale as share of prior holding 8.4% Calculated from SEC Form 4 Read more: Twilio (TWLO) stock analysis and investment case Why it matters OptimistFi's case is that Twilio works if its embedded customer-communications infrastructure remains mission-critical enough to reaccelerate growth while management keeps the post-restructuring profit and cash discipline intact. This filing leaves that view unchanged because it reports a sell-to-cover transaction tied to restricted stock unit vesting.
The 9,084 shares were about 8.4% of Viggiano's reported holding before the trade. That makes the sale a real reduction in one holder's stake, but the filing's own explanation limits how much investors should read into it.
The filing says the shares were sold at a price range of $289.68 to $296.34 per share, which puts the total transaction value at about $2.68 million. It also leaves Viggiano with 99,246 shares after the trade, so the insider still has a meaningful stake to report in later filings.
The filing also says the transaction was made to satisfy statutory tax withholding obligations from restricted stock unit vesting. That detail is the strongest caveat in the filing and keeps the sale from reading as a business call on Twilio's prospects.
Browse: stock research on every company OptimistFi covers
What's next Twilio's next quarterly report is the next scheduled test in the evidence. If that report shows better growth and continued profit and cash discipline, it would support the case.
Weaker results in that report would argue against it. Until then, this filing leaves the investment case unchanged and adds a dated holding level to compare with future Form 4 filings.
More from OptimistFi TWLO stock: the Twilio thesis, its status and the next test to watch Century Therapeutics, Inc. (NASDAQ: IPSC) Adds Two CNTY-813 Batches Applied Digital Corporation (NASDAQ: APLD) Brings 250 MW Online ON Semiconductor Corporation (NASDAQ: ON) Cuts Its Deal Cost by 19% Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC Form 4 — Aidan Viggiano reported sales of 9,084 shares of Twilio Class A common stock on 2026-09-30 and 99,246 shares held after the transaction. Read the full OptimistFi thesis on Twilio Inc.: https://optimistfi.com/stocks/TWLO
See what would break the Twilio Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.
Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.
The full Twilio Inc. investment case, its status and the next test to watch live on the Twilio Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
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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 1.59, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.59 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 72.4% and 6.9% 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 RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
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.
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 Worth Investing In?Looking at the earnings estimate revisions for Twilio, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $5.91.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market 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 #3 (Hold) for Twilio. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Twilio.
Twilio (TWLO - Free Report) closed the most recent trading day at $290.78, moving +1.32% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 0.09%.
Coming into today, shares of the company had gained 21.79% in the past month. In that same time, the Computer and Technology sector gained 3.58%, while the S&P 500 lost 0.24%.
Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.46, reflecting a 16.8% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.51 billion, indicating a 16.16% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and a revenue of $5.98 billion, representing changes of +20.86% and +18%, respectively, from the prior year.
Any recent changes to analyst estimates for Twilio should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Twilio boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Twilio is presently trading at a Forward P/E ratio of 48.54. Its industry sports an average Forward P/E of 19.04, so one might conclude that Twilio is trading at a premium comparatively.
It is also worth noting that TWLO currently has a PEG ratio of 3.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.11.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Twilio Inc. (NYSE:TWLO) shares are tumbling Friday after HSBC downgraded the stock to Reduce from Hold, arguing its recent rally tied to Meta’s Muse AI agent has left shares overvalued.
Twilio stock is taking a hit today. What’s behind TWLO decline? HSBC Downgrades Twilio, Citing Overvaluation Tied to Muse HypeHSBC analyst Sameer Lam cut his rating on Twilio to Reduce from Hold while holding his price target steady at $211, arguing the stock has gotten ahead of itself on speculation it stands to gain from Meta’s Muse AI agent.
The stock has surged roughly 30% since Muse debuted on September 8 and has nearly tripled over the past year. According to Lam, investors have started viewing Twilio as essentially the plumbing behind Muse and other consumer-facing AI agents, a framing he thinks assigns Twilio too large a slice of the resulting upside, Investing.com reported.
Lam wrote that “we agree with the underlying industry logic that AI agents will expand communications volumes such as calls, messages and authentications,” though he cautioned that Twilio’s actual role is likely to be narrower than investors assume.
Wall Street Remains More Bullish Than HSBCThat cautious stance puts HSBC well outside the mainstream view on the stock. Twilio holds an overall Buy consensus, with the average analyst target sitting at $254.59, more than $40 above where HSBC has set its own number.
Other firms have moved in the opposite direction lately: TD Cowen bumped its target up to $300 on September 22, and Rosenblatt raised its own to $290 that same day, both while sticking with Buy ratings.
TWLO Shares Are FallingTWLO Price Action: Twilio shares were down 6.77% at $279.36 at the time of publication on Friday, according to Benzinga Pro.
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As of Sept. 24, 2026, three stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
Twilio Inc (NYSE:TWLO) On Sept. 22, Rosenblatt analyst Catharine Trebnick maintained Twilio with a Buy and raised the price target from $275 to $290, while TD Cowen analyst Derrick Wood maintained the stock with a Buy and boosted the price target from $260 to $300. The company’s stock gained around 31% over the past month and has a 52-week high of $296.37. RSI Value: 76.8 TWLO Price Action: Shares of Twilio gained 2.2% to close at $290.70 on Wednesday. Edge Stock Ratings: 98.85 Momentum score with Value at 11.96. Okta Inc (NASDAQ:OKTA) On Sept. 22, Baird analyst Shrenik Kothari maintained the stock with an Outperform rating and raised the price target from $185 to $200. The company’s stock gained around 57% over the past month and has a 52-week high of $207.20. RSI Value: 70.1 OKTA Price Action: Shares of Okta gained 4.5% to close at $205.36 on Wednesday. Via Transportation Inc (NYSE:VIA) On Sept. 21, Morgan Stanley analyst Josh Baer maintained the stock with an Overweight rating and raised the price target from $24 to $33. The company’s stock gained around 11% over the past five days and has a 52-week high of $55.20. RSI Value: 73.2 VIA Price Action: Shares of Via Transportation rose 4.1% to close at $29.54 on Wednesday. Curious about other BZ Edge Rankings? Click here to discover how similar stocks measure up.
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Twilio (TWLO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned +27.2% over the past month versus the Zacks S&P 500 composite's +1.3% change. The Zacks Internet - Software industry, to which Twilio belongs, has gained 13.2% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
Earnings Estimate RevisionsHere 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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Twilio is expected to post earnings of $1.46 per share for the current quarter, representing a year-over-year change of +16.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $5.91 points to a change of +20.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $6.75 indicates a change of +14.1% from what Twilio is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 #3 (Hold) for Twilio.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Twilio, the consensus sales estimate of $1.51 billion for the current quarter points to a year-over-year change of +16.2%. The $5.98 billion and $6.63 billion estimates for the current and next fiscal years indicate changes of +18% and +10.8%, respectively.
Last Reported Results and Surprise HistoryTwilio reported revenues of $1.5 billion in the last reported quarter, representing a year-over-year change of +22%. EPS of $1.47 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $1.42 billion, the reported revenues represent a surprise of +5.35%. The EPS surprise was +11.36%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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 #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Twilio (TWLO - Free Report) closed at $290.70, marking a +2.17% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the company had gained 27.04% in the past month. In that same time, the Computer and Technology sector gained 6.68%, while the S&P 500 gained 1.26%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. On that day, Twilio is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 16.8%. Simultaneously, our latest consensus estimate expects the revenue to be $1.51 billion, showing a 16.16% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $5.98 billion, which would represent changes of +20.86% and +18%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% upward. Twilio is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 48.12 right now. This represents a premium compared to its industry average Forward P/E of 20.16.
One should further note that TWLO currently holds a PEG ratio of 3.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.14 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 82, putting it in the top 34% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Key Takeaways QQQ: The longer the base, the higher in space.October-November seasonality could rescue stocks.Micron's upcoming earnings report is a significant catalyst. “The Longer the Base, The Higher in Space”The longer the base, the higher in space” is a classic Wall Street stock market adage meaning that an extended period of price consolidation leads to a larger and stronger price move when a breakout finally occurs. A long base structure serves several purposes. It shakes out and frustrates weak shareholders, builds energy, and, when it breaks out, removes overhead selling supply. Gold is a fantastic example of this phenomenon. In late 2024, gold broke out of a massive, 14-year base. The Gold ETF ((GLD - Free Report) ) would double in less than two years.
Image Source: TradingView
After consolidating in a long, frustrating base through the summer, the Nasdaq 100 Index ETF ((QQQ - Free Report) ) is threatening to break out of a more than three-month-long base structure. If QQQ can break and hold above the June 3rd, 2026 highs ($748.65), the Fibonacci extension suggests traders can look for an $800 target on QQQ.
Image Source: TradingView
Mid-Term Election Cycle Seasonality Flips BullishThus far in 2026, the market has been closely following historical mid-term election cycle seasonality trends. Historically, stocks rally in the first quarter, then consolidate in the summer as money managers take vacations, and investors reduce risk ahead of election uncertainty. However, investors who have preserved capital through the summer may be in for a treat. According to Ryan Detrick (@RyanDetrick) of Carson Investment Research, “October has been the best month in midterm years historically and November the second best.” Since 1950, the S&P 500 Index has delivered returns in each month ~70% of the time, with October’s average gain 3% and November’s average gain 2.7%.
Image Source: Carson Investment Research
Oil: False BreakoutSoaring energy prices have acted as the proverbial “pebble in the shoe” for equity markets. Earlier this month, the United States Oil Fund ETF ((USO - Free Report) ) broke out of a three-month base. However, the breakout quickly failed, with USO falling in five consecutive sessions.
Image Source: Zacks Investment Research
An old Wall Street adage suggests that “From false moves come fast moves.” Meanwhile, on Tuesday, a deep-pocketed trader began selling call options in USO. Call selling can be a stronger tell for investors than put buying because it indicates that smart money is willing to take on more risk. This week, the President of Iran is in New York for the first time since the start of the war. Is a deal imminent?
Micron Earnings LoomMicron ((MU - Free Report) ) has been one of the leading artificial intelligence names of the current cycle. The AI hardware provider will report earnings next week that could act as a catalyst for the tech sector. Although MU stock is off its recent highs, its earnings track record has been spotless lately, with the company beating Zacks Consensus Analyst Estimates in 13 consecutive quarters.
Image Source: Zacks Investment Research
Meanwhile, after plummeting due to AI fears, software names like Twilio ((TWLO - Free Report) ) have recovered and are printing fresh highs.
Bottom Line
As the summer chop fades and historical tailwinds align, patient investors who weathered the consolidation phase are well-positioned to capitalize on fourth-quarter strength.
Twilio (TWLO) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Duos Technologies Group (NASDAQ:DUOT – Get Free Report) and Twilio (NYSE:TWLO – Get Free Report) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Analyst Ratings This is a summary of recent ratings and target prices for Duos Technologies Group and Twilio, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Duos Technologies Group 0 2 2 0 2.50 Twilio 1 2 22 2 2.93 Duos Technologies Group presently has a consensus price target of $25.50, indicating a potential upside of 198.59%. Twilio has a consensus price target of $249.68, indicating a potential upside of 2.32%. Given Duos Technologies Group’s higher probable upside, analysts clearly believe Duos Technologies Group is more favorable than Twilio.
Valuation and Earnings This table compares Duos Technologies Group and Twilio”s gross revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Duos Technologies Group $26.66 million 9.39 -$9.84 million $0.99 8.63 Twilio $5.07 billion 7.40 $33.83 million $7.18 33.99 Twilio has higher revenue and earnings than Duos Technologies Group. Duos Technologies Group is trading at a lower price-to-earnings ratio than Twilio, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Duos Technologies Group and Twilio’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Duos Technologies Group 158.99% -11.88% -9.85% Twilio 20.61% 5.09% 4.15% Institutional & Insider Ownership 42.6% of Duos Technologies Group shares are owned by institutional investors. Comparatively, 84.3% of Twilio shares are owned by institutional investors. 3.5% of Duos Technologies Group shares are owned by insiders. Comparatively, 0.2% of Twilio shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility Duos Technologies Group has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Twilio has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
Summary Twilio beats Duos Technologies Group on 11 of the 15 factors compared between the two stocks.
(Get Free Report)
Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. The company provides solutions, such as Centraco, an enterprise information management software platform that consolidates data and events from multiple sources into a unified and distributive user interface; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications. Its proprietary applications include Railcar Inspection Portal that provides freight and transit railroad customers and select government agencies the ability to conduct fully automated railcar inspections of trains while they are moving at full speed. It also develops Automated Logistics Information System, which automates gatehouse operations, as well as develops solutions for rail, trucking, aviation, and other vehicle-based processes. In addition, the company provides consulting services, including consulting and auditing; software licensing with optional hardware sales; customer service training; and maintenance support. The company operates its services under the duostech brand. The company is headquartered in Jacksonville, Florida.
About Twilio (Get Free Report)
Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
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Twilio Inc. (NYSE:TWLO – Get Free Report) has been assigned a consensus recommendation of “Moderate Buy” from the twenty-seven ratings firms that are presently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating, twenty-two have issued a buy rating and two have given a strong buy rating to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $249.6818.
Several equities analysts recently commented on TWLO shares. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $330.00 price objective on shares of Twilio in a research report on Friday, August 7th. Rosenblatt Securities lifted their price objective on shares of Twilio from $230.00 to $275.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Citigroup reissued a “market outperform” rating on shares of Twilio in a report on Thursday, August 27th. Needham & Company LLC raised their target price on Twilio from $250.00 to $280.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Finally, TD Cowen boosted their price target on Twilio from $245.00 to $260.00 and gave the company a “buy” rating in a research note on Friday, August 7th.
Check Out Our Latest Stock Report on Twilio
Insider Buying and Selling at Twilio In other Twilio news, CFO Aidan Viggiano sold 1,394 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $234.48, for a total value of $326,865.12. Following the sale, the chief financial officer directly owned 108,330 shares of the company’s stock, valued at approximately $25,401,218.40. This represents a 1.27% 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 sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 500,000 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $247.08, for a total value of $123,540,000.00. Following the sale, the director directly owned 120,000 shares in the company, valued at $29,649,600. This represents a 80.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 547,354 shares of company stock worth $133,284,825. Company insiders own 0.21% of the company’s stock. Hedge Funds Weigh In On Twilio Institutional investors have recently made changes to their positions in the company. Revere Asset Management Inc acquired a new position in shares of Twilio in the second quarter worth about $8,938,000. National Pension Service grew its holdings in Twilio by 1,177.6% in the second quarter. National Pension Service now owns 261,307 shares of the technology company’s stock valued at $53,915,000 after purchasing an additional 240,854 shares during the period. NewEdge Advisors LLC increased its position in shares of Twilio by 194.7% in the second quarter. NewEdge Advisors LLC now owns 15,338 shares of the technology company’s stock valued at $3,165,000 after buying an additional 10,134 shares in the last quarter. Baird Financial Group Inc. raised its stake in shares of Twilio by 2.0% during the 2nd quarter. Baird Financial Group Inc. now owns 158,347 shares of the technology company’s stock worth $32,672,000 after buying an additional 3,038 shares during the period. Finally, Nykredit A S acquired a new position in shares of Twilio during the 2nd quarter worth approximately $10,514,000. 84.27% of the stock is owned by hedge funds and other institutional investors.
Twilio Stock Performance Shares of Twilio stock opened at $244.02 on Friday. Twilio has a one year low of $98.44 and a one year high of $258.35. The company has a market capitalization of $37.47 billion, a PE ratio of 33.99, a P/E/G ratio of 5.00 and a beta of 1.40. The company has a debt-to-equity ratio of 0.11, a quick ratio of 4.62 and a current ratio of 4.62. The company has a 50-day simple moving average of $220.81 and a two-hundred day simple moving average of $186.55.
Twilio (NYSE:TWLO – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $1.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.32 by $0.15. Twilio had a net margin of 20.61% and a return on equity of 5.09%. The firm had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the previous year, the firm earned $1.19 EPS. The company’s quarterly revenue was up 22.0% compared to the same quarter last year. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. Research analysts expect that Twilio will post 3.12 EPS for the current fiscal year.
About Twilio (Get Free Report)
Twilio Inc is a cloud communications and customer engagement technology company that provides application programming interfaces (APIs) and software tools for businesses. Its platform enables organizations to integrate communications capabilities such as voice calls, text messaging, email, video, authentication and customer support into websites, mobile applications and other digital products.
Twilio’s offerings include programmable communications services, customer data and analytics tools through Segment, and contact center software through Twilio Flex.
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Nykredit A S acquired a new position in shares of Twilio Inc. (NYSE:TWLO – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 50,959 shares of the technology company’s stock, valued at approximately $10,514,000.
A number of other hedge funds and other institutional investors have also bought and sold shares of TWLO. Plato Investment Management Ltd bought a new position in shares of Twilio in the 2nd quarter valued at about $1,637,000. National Pension Service raised its holdings in Twilio by 184.4% during the fourth quarter. National Pension Service now owns 18,545 shares of the technology company’s stock worth $2,638,000 after acquiring an additional 12,025 shares in the last quarter. Assenagon Asset Management S.A. raised its holdings in Twilio by 67.8% during the second quarter. Assenagon Asset Management S.A. now owns 120,582 shares of the technology company’s stock worth $24,880,000 after acquiring an additional 48,742 shares in the last quarter. Jefferies Financial Group Inc. acquired a new position in Twilio during the fourth quarter valued at approximately $895,000. Finally, Aware Super Pty Ltd as trustee of Aware Super acquired a new position in Twilio during the first quarter valued at approximately $4,288,000. Institutional investors and hedge funds own 84.27% of the company’s stock.
Analyst Ratings Changes Several research analysts have weighed in on the company. Mizuho set a $270.00 price target on Twilio in a research report on Wednesday, August 12th. TD Cowen raised their target price on shares of Twilio from $245.00 to $260.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Twilio from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday, August 17th. Needham & Company LLC upped their price target on shares of Twilio from $250.00 to $280.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Wells Fargo & Company upped their price target on shares of Twilio from $225.00 to $275.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $249.68.
Get Our Latest Report on Twilio Twilio Stock Performance Shares of NYSE TWLO opened at $244.02 on Monday. Twilio Inc. has a one year low of $98.44 and a one year high of $258.35. The firm has a market cap of $37.47 billion, a price-to-earnings ratio of 33.99, a P/E/G ratio of 5.00 and a beta of 1.40. The stock’s fifty day moving average price is $220.81 and its two-hundred day moving average price is $186.55. The company has a debt-to-equity ratio of 0.11, a current ratio of 4.62 and a quick ratio of 4.62.
Twilio (NYSE:TWLO – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.15. Twilio had a net margin of 20.61% and a return on equity of 5.09%. The business had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.43 billion. During the same quarter in the previous year, the company earned $1.19 EPS. The business’s revenue was up 22.0% on a year-over-year basis. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. On average, equities analysts forecast that Twilio Inc. will post 3.12 EPS for the current year.
Insiders Place Their Bets In other news, CFO Aidan Viggiano sold 1,394 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $234.48, for a total value of $326,865.12. Following the completion of the transaction, the chief financial officer owned 108,330 shares of the company’s stock, valued at $25,401,218.40. This represents a 1.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Khozema Shipchandler sold 14,458 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $210.43, for a total value of $3,042,396.94. Following the completion of the sale, the chief executive officer owned 207,203 shares of the company’s stock, valued at $43,601,727.29. The trade was a 6.52% 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. Over the last quarter, insiders have sold 547,354 shares of company stock valued at $133,284,825. 0.21% of the stock is currently owned by insiders.
About Twilio (Free Report)
Twilio Inc is a cloud communications and customer engagement technology company that provides application programming interfaces (APIs) and software tools for businesses. Its platform enables organizations to integrate communications capabilities such as voice calls, text messaging, email, video, authentication and customer support into websites, mobile applications and other digital products.
Twilio’s offerings include programmable communications services, customer data and analytics tools through Segment, and contact center software through Twilio Flex.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TWLO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SummaryTwilio is rated Buy, driven by broad-based product momentum and accelerating Voice AI adoption supporting sustainable double-digit revenue and EPS growth.Voice AI and higher-margin software attachments are strengthening TWLO’s gross profit trajectory and operating leverage, despite carrier pass-through fee headwinds.Consensus estimates for FY26 and FY27 are being revised upward, with further upside likely as TWLO consistently beats and raises guidance. jaanalisette/iStock Editorial via Getty Images
Investment Thesis Twilio (TWLO) should continue to see healthy broad-based growth across its product categories and sales channels. Increasing Voice AI adoption should add another significant growth driver. Greater usage from existing clients, further multi-product penetration, and
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Twilio (TWLO - Free Report) ended the recent trading session at $238.88, demonstrating a -1.35% change from the preceding day's closing price. This change lagged the S&P 500's 0.45% loss on the day. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
Coming into today, shares of the company had gained 4.33% in the past month. In that same time, the Computer and Technology sector lost 1.9%, while the S&P 500 lost 2.43%.
The upcoming earnings release of Twilio will be of great interest to investors. The company is expected to report EPS of $1.45, up 16% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.51 billion, reflecting a 16.16% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.88 per share and revenue of $5.98 billion. These totals would mark changes of +20.25% and +18%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Twilio is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Twilio is at present trading with a Forward P/E ratio of 41.15. Its industry sports an average Forward P/E of 20.36, so one might conclude that Twilio is trading at a premium comparatively.
It's also important to note that TWLO currently trades at a PEG ratio of 2.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.14 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Key Takeaways Twilio's AI platform is gaining customers, with wins at Car Finance 247, Vozzi, Olo and Atlassian.Car Finance 247's Carla handled 288,000 chats, helping lift approved leads to 1.6x the rate of non-users.TWLO raised 2026 organic revenue growth guidance to 13%-13.5% after Q2 revenues climbed 22%. Twilio Inc.’s (TWLO - Free Report) AI-related customer wins could provide another growth driver. The company’s new platform combines Conversation Memory, Conversation Orchestrator, Conversation Intelligence and Agent Connect, helping businesses connect AI agents with customers across communication channels.
Early results are encouraging. Car Finance 247 signed a seven-figure deal to use Twilio’s new conversation layer. Its AI assistant, Carla, has handled about 288,000 customer conversations. Customers who interacted with Carla moved to approved leads at roughly 1.6 times the rate of those who did not, contributing to a multi-million-pound annual revenue uplift for the customer. This type of measurable result could encourage more companies to adopt Twilio’s AI tools.
Twilio is also winning deals with companies such as Vozzi, Olo and Atlassian. Vozzi is using several of Twilio’s AI products to support an AI-driven engagement journey, while Atlassian uses Twilio infrastructure for AI-powered customer support. These wins show demand beyond traditional messaging and voice.
The financial numbers provide further support. Twilio’s second-quarter 2026 revenues rose 22% year over year to $1.50 billion, with organic growth of 17%. Non-GAAP operating income increased 29% to $284.6 million, while free cash flow grew 34% to $352.6 million in the second quarter. Its dollar-based net expansion rate also improved to 116% from 108% in the year-ago quarter.
Management raised its 2026 organic revenue growth forecast to 13%-13.5%. If AI wins continue scaling, they could strengthen customer spending and help TWLO sustain its growth momentum. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $5.96 billion, indicating a 17.7% year-over-year increase.
Bandwidth and RingCentral Intensify Twilio’s AI CompetitionBandwidth (BAND - Free Report) is a direct competitor in cloud communications and AI-driven customer engagement. In the second quarter of 2026, its revenues increased 22.2% year over year to $220 million, while adjusted EBITDA climbed 27% to $28 million.
Every $1 million-plus customer win included Bandwidth’s Maestro platform or AI services. Its new Bandwidth Build platform also allows AI agents to activate communications services and launch voice applications, increasing its relevance in the growing AI market.
RingCentral (RNG - Free Report) competes through business communications and AI-powered customer engagement. Its second-quarter 2026 revenues rose 5.9% to $657 million, while adjusted EBITDA margin improved to 26.9% from 26% a year earlier.
RingCentral’s AI traction is notable. Customers using at least one paid AI product represented 13% of annual recurring revenues, doubling from the year-ago quarter. RingCentral also expanded AI agents within its RingCX contact-center platform and raised its 2026 revenue guidance range to $2.635-$2.646 billion from $2.62-$2.64 billion projected earlier.
These rivals show that Twilio’s AI growth opportunity comes with strong competition.
Twilio’s Price Performance, Valuation and EstimatesTwilio shares have jumped 70.8% year to date, while the Zacks Internet – Software industry has risen 2.9%.
Twilio YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, TWLO trades at a forward price-to-earnings ratio of 37.42, significantly above the industry’s average of 28.78.
Twilio Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Twilio’s 2026 and 2027 earnings implies a year-over-year increase of 20.3% and 14.1%, respectively. Estimates for 2026 and 2027 earnings have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Twilio currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider ASML?The final step today is to look at a stock that meets our ESP qualifications. ASML (ASML - Free Report) earns a #3 (Hold) 30 days from its next quarterly earnings release on October 14, 2026, and its Most Accurate Estimate comes in at $13.38 a share.
By taking the percentage difference between the $13.38 Most Accurate Estimate and the $12.59 Zacks Consensus Estimate, ASML has an Earnings ESP of +6.30%. Investors should also know that ASML is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ASML is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Twilio (TWLO - Free Report) .
Slated to report earnings on October 29, 2026, Twilio holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.48 a share 45 days from its next quarterly update.
For Twilio, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.45 is +2.28%.
Because both stocks hold a positive Earnings ESP, ASML and TWLO could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out 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?
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 1.50, 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 1.50 approximates between Strong Buy and Buy.
Of the 28 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75% 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.
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.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors 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.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
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 Worth Investing In?In terms of earnings estimate revisions for Twilio, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $5.88.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market 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 #3 (Hold) for Twilio. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Twilio.
Key Takeaways Twilio launched an AI conversation layer that connects human and AI interactions across customer channels.A seven-figure platform deal and faster lead approvals highlight early customer adoption and business value.TWLO raised its 2026 organic revenue growth forecast to 13%-13.5% as AI communications demand strengthened. Twilio Inc.’s (TWLO - Free Report) new AI-focused platform could become an important growth driver as businesses increasingly deploy AI agents for customer engagement. At its SIGNAL 2026 event, Twilio introduced a new conversation layer featuring Conversation Memory, Conversation Orchestrator, Conversation Intelligence and Agent Connect. These tools connect human and AI interactions while preserving customer context across channels.
Early adoption signals are encouraging. Car Finance 247 signed a seven-figure deal for the new platform, while its AI assistant has handled nearly 300,000 conversations. Customers engaging with the assistant reportedly moved to approved leads 1.6 times faster, showing how Twilio's technology can create measurable business value.
The opportunity is also supported by Twilio’s broader financial momentum. In the second quarter of 2026, revenues increased 22% year over year to $1.50 billion, while organic growth reached 17%. Non-GAAP income from operations rose 29% to $285 million, and free cash flow came in at $353 million. The company's dollar-based net expansion rate also improved to 116% from 108% a year earlier.
Twilio is already seeing strong demand across AI-related communications. Voice revenues grew more than 20%, while software add-on revenues increased more than 25%. The company has also raised its 2026 organic revenue growth forecast to 13%-13.5% from 9.5%-10.5% previously.
With AI adoption expanding and Twilio's core business accelerating, the new platform could provide another growth leg. The Zacks Consensus Estimate for 2026 and 2027 revenues indicates year-over-year increases of 20.3% and 14.1%, respectively.
How Do Competitors Fare Against Twilio?Bandwidth (BAND - Free Report) is a direct competitor to Twilio in cloud communications and AI-enabled customer engagement. The company is increasingly positioned as infrastructure for AI-driven enterprise communications, with its Maestro orchestration platform enabling integration of voice AI into real-time workflows. In the second quarter of 2026, the company introduced Bandwidth Build, which enables AI agents and developers to autonomously deploy communications services and build AI-powered voice applications.
Bandwidth’s AI-enabled communication tools are gaining significant traction. During the second quarter, it secured five new customer wins and expansions exceeding $1 million. The company noted that each customer integrated either the Maestro orchestration platform or specialized AI services, highlighting growing enterprise adoption of AI-enabled communications.
RingCentral (RNG - Free Report) competes through its broader business communications and customer engagement platform, including voice, messaging and contact-center solutions. AI is increasingly aiding RingCentral’s financial performance through growing adoption of its AI-enabled products, including AI Receptionist, AIR Pro, AI Virtual Assistant and AI Conversation Expert.
During the second quarter of 2026, RingCentral stated that customers using at least one paid AI product accounted for 13% of ARR, doubling year over year. This supported the company’s 5.9% year-over-year revenue growth and strengthened its recurring revenue profile.
Twilio’s Price Performance, Valuation and EstimatesTwilio shares have jumped 62.5% year to date, while the Zacks Internet – Software industry has risen 0.6%.
Twilio YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, TWLO trades at a forward price-to-earnings ratio of 35.78, significantly above the industry’s average of 28.28.
Twilio Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Twilio’s 2026 and 2027 earnings implies a year-over-year increase of 20.3% and 14.1%, respectively. Estimates for 2026 and 2027 earnings have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Twilio currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest trading session, Twilio (TWLO - Free Report) closed at $231.13, marking a +1.73% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.59%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
The company's shares have seen a decrease of 7.88% over the last month, not keeping up with the Computer and Technology sector's loss of 0.02% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. On that day, Twilio is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 16%. At the same time, our most recent consensus estimate is projecting a revenue of $1.51 billion, reflecting a 16.15% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.88 per share and revenue of $5.96 billion, indicating changes of +20.25% and +17.71%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.16% higher. Twilio is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Twilio is holding a Forward P/E ratio of 38.61. Its industry sports an average Forward P/E of 19.88, so one might conclude that Twilio is trading at a premium comparatively.
Also, we should mention that TWLO has a PEG ratio of 2.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.07 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.
Shares of this company have returned -7.9% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Internet - Software industry, to which Twilio belongs, has gained 3.7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
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 $1.45 per share, indicating a change of +16% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.7% over the last 30 days.
The consensus earnings estimate of $5.88 for the current fiscal year indicates a year-over-year change of +20.3%. This estimate has changed +1.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.71 indicates a change of +14.1% from what Twilio is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 #3 (Hold) for Twilio.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Twilio, the consensus sales estimate of $1.51 billion for the current quarter points to a year-over-year change of +16.2%. The $5.96 billion and $6.6 billion estimates for the current and next fiscal years indicate changes of +17.7% and +10.7%, respectively.
Last Reported Results and Surprise HistoryTwilio reported revenues of $1.5 billion in the last reported quarter, representing a year-over-year change of +22%. EPS of $1.47 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $1.42 billion, the reported revenues represent a surprise of +5.35%. The EPS surprise was +11.36%.
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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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 #3 does suggest that it may perform in line with the broader market in the near term.
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.
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].
Should You Invest $1,000 in Twilio Right Now?Before you consider Twilio, you'll want to hear this.
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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.
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Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers Zacks #1 Rank Top Movers for Value Growth Momentum VGM Income Company Symbol Price %Chg Motorsport... MSGM 4.40 +9.45% EuroDry EDRY 56.06 +7.70% Abercrombie... ANF 148.34 +3.34% TAL Educati... TAL 12.39 +3.34% Polaris PII 62.92 +3.00% Zacks #1 Rank Top Movers7/16 The Zacks #1 Rank List is the best place to start your stock search each morning. It's made up of the top 5% of stocks with the most potential. Each weekday, you can quickly see the Zacks #1 Rank Top Movers from Value to Growth, Momentum and Income, even VGM Score.
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Full Zacks #1 Rank List8/16 You can see the full Zacks #1 Rank List or narrow it down to Zacks #1 Rank Stocks with a Value, Growth, Momentum or Income Style Score of A or B. Plus, you can see the Zacks #1 Rank Stocks with a VGM of A or B. You can also sort the list with criteria you choose, view Additions and Deletions by day, and Performance.
Symbol Time Expected Reported %Surprise CURV 16:06 -0.03 -0.04 -33.33 VBNK 07:04 0.34 0.27 -20.59 LE 06:46 0.10 0.09 -10.00 CPB 07:15 0.40 0.39 -2.50 EPS Negative Surprises for Sep 04, 2026
Upcoming Earnings ESP View More Symbol ESP Most Accurate Estimate Consensus Estimate AVO 21.74% 0.14 0.12 INNV 5.88% 0.09 0.09 LMNR 5.26% 0.20 0.19 Featured Stock Picks
Best Airline Stocks to Buy Now September 2026 The airline industry covers a wide range of business models and opportunities. See our picks for the Best Airline Stocks to buy now.
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Best Gold Stocks to Buy for September 2026 Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.
