TWLO NYSE Russell 1000 Earnings call
Twilio (TWLO) · Q2 2026 results and valuation
Share price: $219.48 · 2026-11-11
Twilio provides communication APIs and software solutions for messaging, voice, email, and user authentication. The company serves businesses of all sizes across various industries by providing infrastructure to manage customer engagement and data. It operates globally by connecting applications to devices through its software network. Source: 10-K annual report (2026-02-24)
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 30 Apr 2026
Operating income down 21.5% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
−21.5%
Operating income vs Q1 2026
Outlook given
Operating income 84.5M vs 107.7M
Revenue +6.6%
Against the same quarter last year (Q2 2025) it is +128.6%; the dip on last quarter is small next to the change on last year.
Why Against the same quarter last year (+128.6%), operating income rose primarily due to growth in higher-margin products, strong volumes in Messaging and Voice, and proactive efforts to deliver meaningful cost efficiencies, despite a $33 million prepaid asset impairment.
2 · How management spoke
Upbeat
More upbeat than 86% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Twilio issued guidance of 11% to 12%, which is the highest guidance the company has offered in 3 years.
Valuation
Is Twilio undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 9.8% growth a year (3-year revenue growth), the model's fair value is $166.09 a share — the stock trades 32% above it. Today's price assumes 13.9% growth a year.
Current price
$219.48
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.9% for 10 yrs
Fair value / share
$166.09
Buy below
$124.57
Price vs fair value
Overvalued 32%
Price vs buy-below price
Overvalued 76%
Read between the lines
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Figure
Twilio delivered $1.5 billion in revenue, accelerating organic growth to 17% year-over-year while non-GAAP gross profit growth also accelerated to 18% year-over-year.
Source quote
“We delivered $1.5 billion in revenue, accelerating organic growth to 17% year-over-year while non-GAAP gross profit growth also accelerated to 18% year-over-year.”
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Figure
Messaging revenue grew 28% due to higher volumes and growth in WhatsApp and RCS.
Source quote
“Messaging revenue growth was 28%, driven primarily by strong volumes and aided by growth in WhatsApp and RCS.”
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Figure
Total software add-on revenue grew 25% plus, driven by Verify's acceleration to 30% plus growth.
Source quote
“Finally, total software add-on revenue grew 25% plus, led by Verify, which accelerated to 30% plus growth.”
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Guidance
The company issued guidance of 11% to 12%, which is the highest guidance it has offered in 3 years.
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Figure
Conversions increased by over 90% compared to the old console after a majority of existing customers migrated to the new console.
Source quote
“Since the launch, a majority of existing customers have migrated to the new console, and we are seeing a 90% plus uplift in conversions when compared to the old console.”
4 more
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Guidance
Twilio expects gross profit to grow at a similar rate to organic revenue.
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Figure
The company reported a customer with a $6 million annual run rate growing at 65% a year.
Source quote
“And so this is now a $6 million annual run rate customer growing 65% a year.”
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Guidance
Twilio factored a higher than average DBNE for that cohort into the guidance provided for the back half of the year.
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Figure
The $1 million-plus customer cohort grew over 20% this quarter, indicating expansion within the company's largest customer segment.
Source quote
“We are seeing, for example, our largest customer cohort, the $1 million-plus customers, that's growing over 20% as well.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I'm very pleased with the accelerated revenue and gross profit growth we delivered in the second quarter as well as our ongoing financial discipline that is driving strong profitability and...”
“We delivered record non-GAAP gross profit of $736 million with growth accelerating to 18% year-over-year, our fifth consecutive quarter of accelerating non-GAAP gross profit growth.”
“Top line performance was driven by strong volumes and solid go-to-market execution, resulting in another quarter of organic revenue growth acceleration.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.50B | 1.41B | +6.6% | 1.23B | +22.0% |
| Gross profit | 725.9M | 684.2M | +6.1% | 602.7M | +20.4% |
| Operating income | 84.5M | 107.7M | −21.5% | 37.0M | +128.6% |
| Net income | 1.07B | 90.1M | +1084.0% | 22.4M | +4659.4% |
| EPS | 6.68 | 0.57 | +1071.9% | 0.14 | +4671.4% |
| P/E today 25.4 | 28.5 | 190.6 | −162.1 | 1243.6 | −1215.1 |
Topics
Most discussed now
- New You're just using what's relevant for that particular consumer interaction.
- As an example, to drive conversion and scale revenue, leading automotive fintech company, Car Finance 247, joined Twilio's private beta...
- Twilio had an exceptional Q2, delivering record revenue of $1.5 billion, up 22% year-over-year on a reported basis and 17%...
- Twilio also continues to pursue things like direct connections with different carriers around the world.
- Strength in Twilio's higher-margin products, right, Voice software add-ons like Verify or some of its voice software products, strength...
Faded since Q1 2026
- Fading Twilio's voice channel revenue grew 20% year-over-year, marking its sixth consecutive quarter of accelerated growth with AI being a…
- Fading Instead, they are relying on us to be a foundational infrastructure layer for the era of AI.
- Fading That's consistent with its Q1 guidance, which was at the time Twilio gave it, right, 3 months ago, the highest...
- Fading From a Q2 guidance perspective, I'd say the guidance trends are pretty strong.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Twilio reported revenue of $1.50 billion, up 22% year-over-year, and GAAP gross profit of $726 million, up 20% year-over-year for the second quarter of 2026.
- Director or officer change; Shareholder vote results · SEC 8-K
Twilio Inc. stockholders approved the Amended and Restated 2016 Stock Option and Incentive Plan and the 2016 Employee Stock Purchase Plan at the Annual Meeting on June 16, 2026.
- Results of operations · SEC 8-K
Twilio reported revenue of $1.41 billion, up 20% year-over-year, and GAAP gross profit of $684 million, up 18% year-over-year for the first quarter of 2026.
- Director or officer change; Regulation FD disclosure · SEC 8-K
Twilio Inc. appointed Doug Robinson to the Board of Directors and the Compensation and Talent Management Committee on March 24, 2026, increasing the total number of directors from nine to ten.
- Results of operations · SEC 8-K
Twilio reported fourth-quarter revenue of $1.37 billion, up 14% year-over-year, and full-year revenue of $5.07 billion, up 14% year-over-year.
- Results of operations · SEC 8-K
Twilio reported revenue of $1.3 billion, up 15% year-over-year, and non-GAAP income from operations of $235 million, up 29% compared to $182.4 million in the third quarter of 2024.
- Results of operations · SEC 8-K
Twilio reported revenue of $1.23 billion, up 13% year-over-year, and non-GAAP income from operations of $221 million, up 26% year-over-year.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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Q3
revenue target of $1.505 billion to $1.515 billion
Source quote
“For Q3, we're initiating a revenue target of $1.505 billion to $1.515 billion, representing 16% to 16.5% reported growth and 11% to 12% organic growth.”
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full year
raising organic revenue growth range to 13% to 13.5%
Source quote
“For the full year, we're raising our organic revenue growth range to 13% to 13.5%, up from 9.5% to 10.5% previously.”
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full year
raising reported revenue growth range to 18% to 18.5%
Source quote
“We are raising our reported revenue growth range to 18% to 18.5%, up from 14% to 15% previously.”
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full year
expect non-GAAP gross profit growth to be similar to our organic revenue growth rate
Source quote
“In addition, we continue to expect full year non-GAAP gross profit growth to be similar to our organic revenue growth rate.”
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Q3
non-GAAP income from operations of $285 million to $295 million
Source quote
“For Q3, we expect non-GAAP income from operations of $285 million to $295 million.”