Twilio (NYSE:TWLO) Announces Quarterly Earnings Results, Beats Estimates By $0.24 EPS

Twilio (NYSE:TWLO) posted its quarterly earnings results on Thursday. The technology company reported $1.50 earnings per share for the quarter, beating analysts’ consensus estimates of $1.26 by $0.24, FiscalAI reports. Twilio had a return on equity of 3.93% and a net margin of 0.67%.The company had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.34 billion. During the same period last year, the firm earned $1.14 earnings per share. Twilio’s quarterly revenue was up 20.0% on a year-over-year basis. Twilio updated its Q2 2026 guidance to 2.500-2.600 EPS.

Here are the key takeaways from Twilio’s conference call:

• Twilio reported a strong Q1: $1.4B revenue (20% reported, 16% organic), 16% non‑GAAP gross profit growth, $279M non‑GAAP operating income, and $132M free cash flow.
• AI-driven demand is accelerating voice and software add‑ons — voice revenue grew 20% (6th consecutive quarter of acceleration) and add‑ons like Branded Calling and Conversational Intelligence grew >100% YoY as customers adopt voice AI and multi‑channel agents.
• Rising carrier pass‑through fees are compressing margins — Twilio incurred ~$46M incremental carrier fees in Q1, assumes $71M in Q2 and ~$235M for FY‑2026, which the company says will reduce FY non‑GAAP gross margin by roughly 200 basis points (fees pass through revenue but still pressure margin rates).
• Management raised FY guidance — full‑year organic revenue growth tightened to 9.5%–10.5% (reported 14%–15%) and raised non‑GAAP operating income and free cash flow outlook to $1.08B–$1.10B.
• Profitability and capital returns improving — non‑GAAP operating margin hit a record ~19.8%, stock‑based comp fell below 10% of revenue for the first time since IPO, and Twilio repurchased $253M of shares with ~ $900M remaining on the authorization.

Twilio Stock Performance

Shares of TWLO traded up $7.26 during mid-day trading on Thursday, hitting $148.17. 5,673,089 shares of the company’s stock were exchanged, compared to its average volume of 2,221,585. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.13. Twilio has a fifty-two week low of $91.84 and a fifty-two week high of $154.64. The business’s 50 day moving average is $128.65 and its two-hundred day moving average is $126.34. The firm has a market capitalization of $22.45 billion, a P/E ratio of 779.88, a P/E/G ratio of 5.56 and a beta of 1.28.

Insider Activity at Twilio

In other Twilio news, CEO Khozema Shipchandler sold 15,715 shares of the company’s stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $133.39, for a total transaction of $2,096,223.85. Following the completion of the sale, the chief executive officer directly owned 235,542 shares of the company’s stock, valued at $31,418,947.38. This represents a 6.25% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erika Rottenberg sold 1,800 shares of Twilio stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $149.02, for a total value of $268,236.00. Following the completion of the transaction, the director owned 34,495 shares in the company, valued at $5,140,444.90. This trade represents a 4.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 49,588 shares of company stock worth $6,336,644 in the last quarter. Company insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Twilio

Institutional investors have recently bought and sold shares of the company. Compound Planning Inc. raised its position in Twilio by 10.0% during the 4th quarter. Compound Planning Inc. now owns 7,861 shares of the technology company’s stock worth $1,118,000 after buying an additional 716 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Twilio by 56.9% in the fourth quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company’s stock valued at $448,276,000 after acquiring an additional 1,142,309 shares in the last quarter. Corient Private Wealth LLC increased its stake in shares of Twilio by 317.3% during the fourth quarter. Corient Private Wealth LLC now owns 61,219 shares of the technology company’s stock worth $8,708,000 after acquiring an additional 46,549 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in shares of Twilio by 53.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 13,448 shares of the technology company’s stock worth $1,913,000 after acquiring an additional 4,678 shares during the period. Finally, Vident Advisory LLC raised its holdings in Twilio by 22.4% during the fourth quarter. Vident Advisory LLC now owns 56,024 shares of the technology company’s stock worth $7,969,000 after purchasing an additional 10,250 shares in the last quarter. 84.27% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on TWLO. Weiss Ratings cut shares of Twilio from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, February 27th. Piper Sandler reiterated a “neutral” rating and set a $130.00 target price (down from $148.00) on shares of Twilio in a research report on Friday, February 13th. Needham & Company LLC reissued a “buy” rating on shares of Twilio in a report on Friday, March 13th. UBS Group upped their target price on Twilio from $150.00 to $180.00 and gave the company a “buy” rating in a research report on Friday, April 24th. Finally, Mizuho lifted their price target on Twilio from $150.00 to $165.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 21st. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Twilio presently has an average rating of “Moderate Buy” and an average price target of $154.09.

Key Headlines Impacting Twilio

Here are the key news stories impacting Twilio this week:

• Positive Sentiment: Q1 EPS and revenue beat — Twilio reported non‑GAAP EPS of $1.50 vs. consensus ~$1.26 and revenue of $1.41B, up 20% year/year, demonstrating continued top‑line acceleration. Read More.
• Positive Sentiment: Strong quarter prompted an immediate bullish market reaction — multiple outlets note the share jump after the 20% revenue gain and beat on EPS, underscoring investor enthusiasm for the growth print. Read More.
• Positive Sentiment: Raised guidance and optimistic June-quarter outlook — Twilio set Q2 EPS guidance well above prior expectations and gave revenue guidance slightly above Street views (midpoint ~ $1.43B), supporting expectations for further upside. Read More.
• Positive Sentiment: Company lifts full‑year growth outlook driven by AI demand — Management raised its annual revenue growth forecast, citing AI‑driven demand for customer engagement tools as a tailwind. Read More.
• Neutral Sentiment: Official press release and materials available — The company published the full Q1 release, slide deck and conference call materials for investors to review details and management commentary. Read More.
• Neutral Sentiment: Analysts and previews highlighted margin focus going into the print — Some coverage flagged that margins remain an area investors will watch even as growth accelerates. Read More.

Twilio Company Profile

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.