Twilio (NYSE:TWLO) Issues Earnings Results

Twilio (NYSE:TWLO) released its quarterly earnings data on Thursday. The technology company reported $1.33 EPS for the quarter, beating the consensus estimate of $1.24 by $0.09, FiscalAI reports. Twilio had a return on equity of 3.36% and a net margin of 1.37%.During the same quarter in the prior year, the business earned $1.00 earnings per share. The business’s quarterly revenue was up 14.3% on a year-over-year basis. Twilio updated its Q1 2026 guidance to 1.210-1.260 EPS.

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

• Twilio reported record Q4 revenue of $1.4 billion, Q4 non‑GAAP operating income of $256 million, Q4 free cash flow of $256 million, and full‑year revenue of $5.1 billion, marking its first full year of GAAP profitability.
• Voice and Voice AI were major growth drivers—Voice accelerated to the high‑teens growth rate in Q4, Voice AI revenue rose >60% YoY, Branded Calling revenue grew roughly 6x YoY, and RCS volumes increased ~5x quarter‑over‑quarter.
• Management issued bullish targets: Q1 revenue of $1.335–$1.345 billion (10–11% organic) and full‑year 2026 organic growth of 8–9%, with 2026 non‑GAAP operating income and free cash flow each guided to $1.04–$1.06 billion, and a 2027 non‑GAAP operating income target of at least $1.23 billion (fee‑adjusted).
• Carrier A2P fee increases are a headwind to margins—Twilio expects ~$190 million of incremental pass‑through revenue in 2026 that it says will reduce 2026 non‑GAAP gross margin by ~170 basis points (and operating margin ~60–70 bps), even though the fees don’t reduce dollar profits.
• Execution and capital returns remain strong—non‑GAAP operating margin expanded, 2025 free cash flow was $945 million with $855 million in share buybacks (90% of FCF), share count down ~18%, and continued reductions in stock‑based comp and net burn.

Twilio Stock Performance

Twilio stock traded down $0.21 during mid-day trading on Thursday, reaching $110.23. The company’s stock had a trading volume of 5,003,004 shares, compared to its average volume of 2,744,835. The firm’s fifty day moving average price is $130.00 and its two-hundred day moving average price is $119.16. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.68 and a current ratio of 4.68. Twilio has a 12-month low of $77.51 and a 12-month high of $147.42. The company has a market capitalization of $16.91 billion, a P/E ratio of 268.86, a PEG ratio of 2.32 and a beta of 1.32.

Insider Transactions at Twilio

In other Twilio news, CFO Aidan Viggiano sold 8,109 shares of the firm’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $143.38, for a total value of $1,162,668.42. Following the completion of the transaction, the chief financial officer owned 119,449 shares in the company, valued at $17,126,597.62. This trade represents a 6.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Andrew Stafman sold 1,000,000 shares of Twilio stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $129.00, for a total value of $129,000,000.00. Following the transaction, the director directly owned 2,295,000 shares of the company’s stock, valued at $296,055,000. The trade was a 30.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,043,438 shares of company stock valued at $135,022,770 over the last three months. Company insiders own 0.21% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. State Street Corp raised its position in shares of Twilio by 47.8% in the third quarter. State Street Corp now owns 5,879,395 shares of the technology company’s stock worth $588,469,000 after buying an additional 1,900,551 shares in the last quarter. Alyeska Investment Group L.P. increased its stake in Twilio by 39.7% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,643,859 shares of the technology company’s stock worth $264,624,000 after acquiring an additional 750,951 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Twilio by 225.0% in the 3rd quarter. Invesco Ltd. now owns 2,009,237 shares of the technology company’s stock valued at $201,105,000 after acquiring an additional 1,391,013 shares in the last quarter. Northern Trust Corp raised its holdings in shares of Twilio by 40.4% in the 3rd quarter. Northern Trust Corp now owns 1,673,339 shares of the technology company’s stock valued at $167,485,000 after acquiring an additional 481,257 shares in the last quarter. Finally, Freestone Grove Partners LP boosted its position in shares of Twilio by 43.1% during the 3rd quarter. Freestone Grove Partners LP now owns 1,024,242 shares of the technology company’s stock valued at $102,516,000 after acquiring an additional 308,416 shares during the last quarter. Institutional investors own 84.27% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. The Goldman Sachs Group reiterated a “buy” rating and issued a $150.00 target price on shares of Twilio in a research note on Friday, October 31st. Royal Bank Of Canada raised their price objective on shares of Twilio from $75.00 to $100.00 and gave the stock an “underperform” rating in a report on Monday, January 5th. Bank of America lifted their price objective on shares of Twilio from $100.00 to $110.00 and gave the stock an “underperform” rating in a research report on Friday, October 31st. Stifel Nicolaus increased their target price on shares of Twilio from $110.00 to $120.00 and gave the company a “hold” rating in a research report on Friday, October 31st. Finally, FBN Securities upgraded Twilio to a “strong-buy” rating in a research note on Wednesday, November 12th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $146.44.

About Twilio

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.