Twilio (NYSE:TWLO) Releases Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Twilio's quarterly earnings surpassed expectations, reporting $1.19 EPS against the forecasted $1.02, and demonstrated a year-over-year revenue increase of 13.5% to $1.23 billion.
• The stock experienced a decline, trading down $23.80 to $98.59, with analysts adjusting price targets, reflecting mixed ratings among brokerages.
• Following insider trading by CFO Aidan Viggiano and CEO Khozema Shipchandler, the company saw a reduction in their ownership, selling thousands of shares close to a price of $117.

Twilio (NYSE:TWLO - Get Free Report) announced its quarterly earnings data on Thursday. The technology company reported $1.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.02 by $0.17, Briefing.com reports. Twilio had a net margin of 0.43% and a return on equity of 2.77%. The firm had revenue of $1.23 billion for the quarter, compared to analysts' expectations of $1.19 billion. During the same period last year, the firm earned $0.87 earnings per share. The business's revenue for the quarter was up 13.5% on a year-over-year basis. Twilio updated its Q3 2025 guidance to 1.010-1.060 EPS.

Twilio Stock Performance

Twilio stock traded down $23.80 during midday trading on Friday, hitting $98.59. The stock had a trading volume of 17,647,410 shares, compared to its average volume of 2,905,888. The company has a current ratio of 4.78, a quick ratio of 4.78 and a debt-to-equity ratio of 0.12. Twilio has a 52-week low of $56.85 and a 52-week high of $151.95. The firm's fifty day moving average is $121.93 and its two-hundred day moving average is $114.33. The company has a market capitalization of $15.05 billion, a PE ratio of 821.65, a P/E/G ratio of 3.70 and a beta of 1.23.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on TWLO. Wall Street Zen cut shares of Twilio from a "strong-buy" rating to a "buy" rating in a research report on Friday, May 30th. Robert W. Baird lowered their price target on shares of Twilio from $160.00 to $130.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 30th. UBS Group lowered their price target on shares of Twilio from $150.00 to $135.00 and set a "buy" rating on the stock in a research note on Friday. The Goldman Sachs Group boosted their price objective on shares of Twilio from $130.00 to $145.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. Finally, Mizuho reduced their target price on shares of Twilio from $165.00 to $125.00 and set an "outperform" rating for the company in a report on Tuesday, April 15th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Twilio has an average rating of "Moderate Buy" and a consensus price target of $126.74.

Insider Buying and Selling at Twilio

In other news, CFO Aidan Viggiano sold 8,297 shares of the 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 completion of the transaction, the chief financial officer directly owned 147,823 shares in the company, 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 Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Khozema Shipchandler sold 13,595 shares of the 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 transaction, the chief executive officer owned 246,986 shares of the company's stock, valued at $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. Insiders sold a total of 55,888 shares of company stock valued at $6,753,409 in the last three months. 0.21% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Twilio

An institutional investor recently raised its position in Twilio stock. Brighton Jones LLC lifted its holdings in shares of Twilio Inc. (NYSE:TWLO - Free Report) by 6.6% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 10,051 shares of the technology company's stock after acquiring an additional 623 shares during the period. Brighton Jones LLC's holdings in Twilio were worth $1,086,000 at the end of the most recent quarter. 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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