Northland Securities Lifts Earnings Estimates for Twilio

Key Points

• Northland Securities raised its FY2026 EPS forecast for Twilio to $3.32 from $3.08, above the $3.15 consensus estimate; it projects FY2027 EPS of $4.04.
• Twilio’s latest quarter beat expectations, with EPS of $1.65 versus $1.47 expected and revenue of $1.56 billion versus $1.52 billion; revenue grew 19.9% year over year.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating, though concerns about slower expected organic growth and recent stock declines remain.

Twilio Inc. (NYSE:TWLO - Free Report) - Equities research analysts at Northland Securities boosted their FY2026 EPS estimates for Twilio in a report released on Friday, October 30th. Northland Securities analyst M. Latimore now anticipates that the technology company will earn $3.32 per share for the year, up from their previous forecast of $3.08. The consensus estimate for Twilio's current full-year earnings is $3.15 per share. Northland Securities also issued estimates for Twilio's Q4 2026 earnings at $0.80 EPS, Q1 2027 earnings at $0.95 EPS, Q2 2027 earnings at $1.00 EPS, Q3 2027 earnings at $1.04 EPS, Q4 2027 earnings at $1.06 EPS and FY2027 earnings at $4.04 EPS.

Twilio (NYSE:TWLO - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The technology company reported $1.65 earnings per share for the quarter, topping analysts' consensus estimates of $1.47 by $0.18. The company had revenue of $1.56 billion for the quarter, compared to analysts' expectations of $1.52 billion. Twilio had a net margin of 21.82% and a return on equity of 5.58%. The firm's revenue for the quarter was up 19.9% on a year-over-year basis. During the same quarter last year, the company earned $1.25 earnings per share.

A number of other brokerages have also recently weighed in on TWLO. Zacks Research raised shares of Twilio from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 16th. Rosenblatt Securities raised their price objective on Twilio from $275.00 to $290.00 and gave the stock a "buy" rating in a report on Tuesday, September 22nd. Bank of America lifted their target price on Twilio from $270.00 to $320.00 and gave the stock a "buy" rating in a research report on Wednesday, October 14th. Oppenheimer lifted their target price on Twilio from $275.00 to $325.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 21st. Finally, Stifel Nicolaus set a $325.00 target price on Twilio in a report on Wednesday, October 14th. Three research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $269.48.

Twilio Trading Down 0.3%

NYSE TWLO opened at $213.18 on Thursday. The company has a debt-to-equity ratio of 0.11, a current ratio of 4.47 and a quick ratio of 4.62. The firm's fifty day moving average price is $255.82 and its 200 day moving average price is $189.46. The company has a market capitalization of $32.74 billion, a price-to-earnings ratio of 26.82, a price-to-earnings-growth ratio of 4.33 and a beta of 1.49. Twilio has a 12 month low of $105.00 and a 12 month high of $308.40.

Insider Activity

In other Twilio news, Director Andrew Stafman sold 500,000 shares of the firm'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 transaction, the director directly owned 120,000 shares of the company's stock, valued at approximately $29,649,600. This trade represents a 80.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Aidan Viggiano sold 9,084 shares of Twilio stock in a transaction 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 completion of the transaction, the chief financial officer owned 99,246 shares in the company, valued at approximately $29,242,833.90. This represents a 8.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 538,818 shares of company stock valued at $134,833,645 in the last ninety days. 0.21% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Twilio

Institutional investors and hedge funds have recently made changes to their positions in the business. Quantinno Capital Management LP increased its holdings in shares of Twilio by 137.9% in the 1st quarter. Quantinno Capital Management LP now owns 648,882 shares of the technology company's stock valued at $81,642,000 after purchasing an additional 376,142 shares in the last quarter. Royal Bank of Canada lifted its stake in shares of Twilio by 10.8% in 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 during the period. National Pension Service boosted its holdings in Twilio by 1,177.6% during the second quarter. National Pension Service now owns 261,307 shares of the technology company's stock worth $53,915,000 after buying an additional 240,854 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its holdings in Twilio by 89.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 483,611 shares of the technology company's stock worth $63,092,000 after buying an additional 228,840 shares in the last quarter. Finally, Artemis Investment Management LLP boosted its holdings in 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 buying an additional 217,952 shares in the last quarter. 84.27% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Twilio

Here are the key news stories impacting Twilio this week:

• Positive Sentiment: Tigress Financial raised its price target to $320 from $255 and maintained a Buy rating, signaling confidence in Twilio’s prospects. Tigress Financial target and rating
• Positive Sentiment: HSBC upgraded Twilio to Hold after the recent selloff, while another report highlighted the company’s AI adoption and potential for customers to increase spending. These are signs of improving sentiment, though not a strong consensus Buy signal. HSBC upgrade Twilio AI and growth outlook
• Neutral Sentiment: Zacks noted that Twilio has a Buy-equivalent average brokerage recommendation, but cautioned that analyst ratings can be overly optimistic. Increased search interest in the stock does not, by itself, indicate a change in fundamentals. Zacks brokerage recommendation
• Negative Sentiment: The key concern is a reported reduction in expected organic growth from 16% to a guided 11%–12%. That outlook has weighed on expectations despite Twilio’s latest quarterly results beating EPS and revenue estimates and showing 19.9% year-over-year revenue growth. Investor investigation notice citing growth guidance
• Negative Sentiment: Levi & Korsinsky and other firms announced investigations into potential securities claims following the decline. These are allegations and investigations—not findings of wrongdoing—but may add uncertainty and negative headlines. Investor investigation announcement

About Twilio

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.

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