Twilio (NYSE:TWLO) Issues Q3 2025 Earnings Guidance

Key Points

• Twilio has updated its Q3 2025 earnings guidance, projecting an EPS of $1.010-$1.060, lower than the consensus estimate of $1.138, while revenue guidance is set at $1.2 billion-$1.3 billion, aligning with expectations.
• The company's stock fell by 5.7% in recent trading, closing at $122.75, following a quarter where Twilio reported an EPS of $0.42, missing the consensus estimate by $0.60.
• Recent analyst activity shows mixed sentiments, with a total of seventeen analysts rating Twilio as a buy and a median target price adjusted to $127.22.

Twilio (NYSE:TWLO - Get Free Report) updated its third quarter 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.010-1.060 for the period, compared to the consensus estimate of 1.138. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.2 billion.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Mizuho dropped their price objective on shares of Twilio from $165.00 to $125.00 and set an "outperform" rating for the company in a research note on Tuesday, April 15th. KeyCorp assumed coverage on shares of Twilio in a research note on Friday, June 6th. They set an "overweight" rating and a $146.00 price objective for the company. The Goldman Sachs Group upped their price objective on shares of Twilio from $130.00 to $145.00 and gave the company a "buy" rating in a research note on Friday, May 2nd. HSBC raised shares of Twilio from a "reduce" rating to a "hold" rating and upped their price objective for the company from $77.00 to $99.00 in a research note on Monday, May 5th. Finally, Robert W. Baird dropped their price objective on shares of Twilio from $160.00 to $130.00 and set an "outperform" rating for the company in a research note on Wednesday, April 30th. One analyst has rated the stock with a sell rating, seven have issued a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Twilio has an average rating of "Moderate Buy" and an average target price of $127.22.

Twilio Stock Down 5.7%

Shares of TWLO traded down $7.47 during trading on Thursday, reaching $122.75. The company's stock had a trading volume of 6,409,668 shares, compared to its average volume of 2,871,940. The company has a fifty day moving average of $122.21 and a two-hundred day moving average of $114.36. Twilio has a twelve month low of $56.85 and a twelve month high of $151.95. The company has a market cap of $18.74 billion, a price-to-earnings ratio of -584.53, a P/E/G ratio of 3.77 and a beta of 1.23. The company has a quick ratio of 4.78, a current ratio of 4.78 and a debt-to-equity ratio of 0.12.

Twilio (NYSE:TWLO - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The technology company reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.60). Twilio had a negative net margin of 0.74% and a positive return on equity of 2.25%. On average, sell-side analysts predict that Twilio will post 1.44 EPS for the current fiscal year.

Insider Activity at Twilio

In related news, CFO Aidan Viggiano sold 8,297 shares of the company's stock in a transaction that occurred on Thursday, July 3rd. The stock was sold at an average price of $117.05, for a total transaction of $971,163.85. Following the sale, the chief financial officer directly owned 147,823 shares of the company's stock, valued at approximately $17,302,682.15. This represents a 5.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Khozema Shipchandler sold 13,595 shares of the company's stock in a transaction that occurred on Thursday, July 3rd. The shares were sold at an average price of $117.06, for a total value of $1,591,430.70. Following the sale, the chief executive officer directly owned 246,986 shares in the company, valued at approximately $28,912,181.16. This represents a 5.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 55,888 shares of company stock valued at $6,753,409. Corporate insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On Twilio

A hedge fund recently raised its stake in Twilio stock. Brighton Jones LLC boosted its stake in Twilio Inc. (NYSE:TWLO - Free Report) by 6.6% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 10,051 shares of the technology company's stock after buying an additional 623 shares during the period. Brighton Jones LLC's holdings in Twilio were worth $1,086,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 84.27% of the company's stock.

About Twilio

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.

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