TLDR
- Twilio surged 16.5% in premarket trading after posting Q2 adjusted EPS of $1.47, beating the $1.32 estimate
- Revenue came in at $1.50 billion, topping the $1.43 billion consensus and up 22% year-over-year
- Q3 revenue guidance midpoint of $1.510 billion came in well above the $1.464 billion analyst estimate
- Full-year 2026 revenue growth outlook raised to 18%-18.5%, up from a prior range of 14%-15%
- Needham raised its price target to $280 from $250, maintaining a Buy rating; Stifel lifted its target to $275
Twilio stock jumped 16.5% in premarket trading on Friday after the company posted Q2 results that topped estimates on both the top and bottom lines.
Adjusted EPS came in at $1.47, beating the consensus of $1.32 by $0.15. Revenue hit $1.50 billion against an estimate of $1.43 billion, a 22% increase year-over-year.
Organic revenue grew 17% in the quarter, beating the company’s own guidance and buy-side expectations, according to Stifel.
TWILIO $TWLO Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.5B (Est. $1.43B) 🟢; +22% reported
🔹 Adj. EPS: $1.47 (Est. $1.32) 🟢; +24% YoY
🔹 FCF: $352.6M (Est. $322M) 🟢; +34% YoYRaises FY26 Guide:
🔹 Free Cash Flow: $1.1B-$1.2B (Est. $1.1B) 🟢
🔹 Revenue Growth: +18%-+18.5%
🔹… pic.twitter.com/qg7acW8Vgt— Wall St Engine (@wallstengine) August 6, 2026
Free cash flow reached $352.6 million in Q2, up from $263.5 million in the same period last year. The company described the quarter as one of record profitability.
CEO Khozema Shipchandler said Twilio is in “a powerful new chapter,” pointing to organic growth acceleration and record free cash flow as the key drivers.
Q3 and Full-Year Guidance Raised
For Q3, Twilio guided for revenue of $1.505 billion to $1.515 billion. The midpoint of $1.510 billion sits above the analyst consensus of $1.464 billion.
Q3 adjusted EPS guidance came in at $1.42 to $1.47, with a midpoint of $1.445, topping the $1.40 consensus.
Full-year 2026 revenue growth guidance was raised to 18%-18.5%, up from a prior range of 14%-15%. Adjusted income from operations was lifted to $1.135 billion-$1.155 billion, from $1.08 billion-$1.10 billion.
The company also raised its free cash flow range to match the same levels as its updated operating income guidance.
Twilio updated its organic growth target to 13.25% at the midpoint for the full year.
Analyst Reaction
Needham raised its price target to $280 from $250 and kept a Buy rating. The firm said Twilio’s competitive position in CPaaS is unmatched and cited broad-based strength across ISV, self-service, and direct sales channels.
Both messaging and voice revenue accelerated sequentially, which Needham flagged as evidence of market share gains.
Needham also noted that Twilio’s organic growth target looks conservative relative to potential AI-driven opportunities in customer support and B2B sales. The company’s revenue growth reached 18% over the last twelve months.
TD Cowen raised its price target to $260, maintaining a Buy rating, citing 29% EBIT growth and the increase in organic guidance.
Stifel raised its target to $275 from $260 but kept a Hold rating. The firm said it believes Twilio continues to manage expectations conservatively around agentic AI benefits.
Wall Street’s consensus rating sits at Buy, with price targets ranging from $120 to $300.
The stock has gained 68% over the past six months heading into this earnings report.
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