Twilio stock pops on better-than-expected Q2 report
Published: 09:35 07 Aug 2026 EDT
Twilio (Twilio Inc (NYSE:TWLO)) shares opened about 18% higher on Friday after the communications software company reported second-quarter results that exceeded analyst expectations.
Twilio reported adjusted earnings of $1.47 per share for the second quarter, compared with analyst consensus estimates of $1.32 per share. Revenue reached $1.50 billion, up 22% year over year and above estimates of $1.43 billion. Organic revenue growth was 17%.
GAAP gross profit rose 20% year over year to $725.9 million, while non-GAAP gross profit increased 18% to $735.7 million. GAAP income from operations was $84.5 million, up 129% from a year earlier, while non-GAAP income from operations increased 29% to $284.6 million.
Twilio reported GAAP diluted earnings per share of $6.68, compared with $0.14 in the year-ago quarter. The company said the figure included a non-cash benefit of $5.91 per share from the release of a significant portion of the valuation allowance against its US deferred tax assets.
Non-GAAP net income was $234 million, compared with $1.19 in adjusted earnings per share in the second quarter of 2025.
For the third quarter, Twilio initiated revenue guidance of $1.505 billion to $1.515 billion, representing reported growth of 16% to 16.5% and organic growth of 11% to 12% year over year.
The company expects third-quarter non-GAAP income from operations of $285 million to $295 million and adjusted diluted earnings per share of $1.42 to $1.47.
“We are in a powerful new chapter at Twilio, marked by another quarter of organic growth acceleration as well as record profitability and free cash flow,” Twilio CEO Khozema Shipchandler said in the company’s earnigs statement.
“At SIGNAL, we unveiled a revamped Twilio platform giving customers the building blocks they need to power rich, lifelong conversations. In a world where humans and AI agents increasingly work side by side, Twilio is providing the infrastructure to power them both.”
