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

Key Points

• Q1 beat and raised guidance: Twilio reported Q1 non‑GAAP EPS of $1.50 versus $1.26 consensus and revenue of $1.41B (up 20% YoY), and gave Q2 EPS guidance of $2.50–$2.60 while tightening FY organic revenue growth to 9.5%–10.5% with higher operating income and free cash flow targets.
• AI-driven demand accelerating product growth: Voice revenue grew 20% (sixth consecutive quarter of acceleration) and add‑ons like Branded Calling and Conversational Intelligence rose >100% YoY as customers adopt voice AI and multi‑channel agents.
• Margin headwind from carrier fees despite profitability gains: Management expects incremental carrier pass‑through fees (~$46M Q1, ~$71M Q2, ~$235M FY‑2026) to compress non‑GAAP gross margin by roughly 200 basis points, even as non‑GAAP operating margin reached ~19.8% and the company repurchased $253M of stock.

Twilio (NYSE:TWLO - Get Free Report) announced its quarterly earnings results on Thursday. The technology company reported $1.50 EPS 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 during the quarter, compared to analysts' expectations of $1.34 billion. During the same period in the prior year, the company earned $1.14 EPS. Twilio's revenue was up 20.0% compared to the same quarter last year. 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 Trading Up 5.2%

NYSE TWLO traded up $7.26 during trading hours 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 stock has a 50-day simple moving average of $128.65 and a 200 day simple moving average of $126.34. Twilio has a 1-year low of $91.84 and a 1-year high of $154.64. The firm has a market cap of $22.45 billion, a price-to-earnings ratio of 779.88, a PEG ratio of 5.56 and a beta of 1.28. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.13.

Insider Buying and Selling

In other Twilio news, CEO Khozema Shipchandler sold 15,715 shares of the business'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 approximately $31,418,947.38. The trade was a 6.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erika Rottenberg sold 1,800 shares of the business's stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $149.02, for a total value of $268,236.00. Following the sale, the director directly owned 34,495 shares of the company's stock, valued at $5,140,444.90. This represents a 4.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 49,588 shares of company stock valued at $6,336,644. 0.21% of the stock is owned by company insiders.

Institutional Trading of Twilio

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Compound Planning Inc. increased its holdings 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 purchasing an additional 716 shares in the last quarter. Invesco Ltd. increased its holdings in Twilio by 56.9% during the 4th quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company's stock worth $448,276,000 after purchasing an additional 1,142,309 shares in the last quarter. Corient Private Wealth LLC increased its holdings in Twilio by 317.3% during the 4th quarter. Corient Private Wealth LLC now owns 61,219 shares of the technology company's stock worth $8,708,000 after purchasing an additional 46,549 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in Twilio by 53.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 13,448 shares of the technology company's stock worth $1,913,000 after purchasing an additional 4,678 shares in the last quarter. Finally, Vident Advisory LLC increased its holdings in Twilio by 22.4% during the 4th 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.

Twilio News Roundup

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.

Analysts Set New Price Targets

Several research analysts recently issued reports on TWLO shares. Royal Bank Of Canada raised their target price on Twilio from $75.00 to $100.00 and gave the stock an "underperform" rating in a research report on Monday, January 5th. Piper Sandler reaffirmed 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 reaffirmed a "buy" rating on shares of Twilio in a research report on Friday, March 13th. Jefferies Financial Group raised Twilio from a "hold" rating to a "buy" rating and raised their target price for the stock from $125.00 to $160.00 in a research report on Monday, April 6th. Finally, TD Cowen raised Twilio from a "hold" rating to a "buy" rating and raised their target price for the stock from $125.00 to $160.00 in a research report on Monday, March 2nd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $154.09.

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.

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