Twilio (NYSE:TWLO) Updates Q3 2026 Earnings Guidance

Twilio (NYSE:TWLO) issued an update on its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 1.420-1.470 for the period, compared to the consensus estimate of 1.250. The company issued revenue guidance of $1.5 billion-$1.5 billion, compared to the consensus revenue estimate of $1.5 billion. Twilio also updated its FY 2026 guidance to EPS.

Analysts Set New Price Targets

TWLO has been the subject of several research reports. Morgan Stanley reissued an “overweight” rating and set a $200.00 price objective on shares of Twilio in a research report on Friday, May 1st. KGI Securities began coverage on shares of Twilio in a research report on Thursday, July 2nd. They issued an “outperform” rating and a $250.00 price objective on the stock. Oppenheimer upped their target price on shares of Twilio from $200.00 to $235.00 and gave the stock an “outperform” rating in a research note on Monday, May 18th. Rosenblatt Securities reiterated a “buy” rating and set a $230.00 target price on shares of Twilio in a report on Thursday, June 18th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Twilio in a research note on Monday. Four equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $220.59.

Twilio Stock Performance

Shares of Twilio stock traded down $0.02 during trading on Thursday, hitting $193.20. 4,513,328 shares of the stock were exchanged, compared to its average volume of 1,775,326. The stock has a market capitalization of $29.32 billion, a price-to-earnings ratio of 301.88, a price-to-earnings-growth ratio of 3.84 and a beta of 1.37. The company has a fifty day moving average price of $202.76 and a 200-day moving average price of $161.07. Twilio has a 1-year low of $91.84 and a 1-year high of $238.48. The company has a current ratio of 4.66, a quick ratio of 4.66 and a debt-to-equity ratio of 0.13.

Twilio (NYSE:TWLO) last issued its earnings results on Thursday, August 6th. The technology company reported $1.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.32 by $0.15. Twilio had a net margin of 1.96% and a return on equity of 4.64%. The company had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.43 billion. During the same period in the prior year, the firm earned $1.19 EPS. Twilio’s quarterly revenue was up 22.0% compared to the same quarter last year. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. As a group, equities analysts predict that Twilio will post 2.79 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Erika Rottenberg sold 2,000 shares of Twilio stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $199.01, for a total transaction of $398,020.00. Following the completion of the transaction, the director directly owned 30,995 shares in the company, valued at approximately $6,168,314.95. The trade was a 6.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aidan Viggiano sold 8,528 shares of Twilio stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $205.43, for a total value of $1,751,907.04. Following the transaction, the chief financial officer owned 109,724 shares of the company’s stock, valued at $22,540,601.32. This represents a 7.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,802,480 shares of company stock worth $341,620,487 over the last ninety days. 0.21% of the stock is currently owned by corporate insiders.

Twilio News Roundup

Here are the key news stories impacting Twilio this week:

• Positive Sentiment: Q2 results exceeded expectations: Twilio reported adjusted earnings of $1.47 per share, above the $1.32 consensus estimate, while revenue increased 22% year over year to $1.50 billion versus expectations of approximately $1.43 billion. Twilio Q2 earnings report
• Positive Sentiment: AI momentum is supporting growth: Reports highlighted increasing traction for Twilio’s voice-based AI tools, reinforcing the company’s positioning as infrastructure for customer engagement in the AI era. Twilio earnings and voice AI article
• Positive Sentiment: Upbeat Q3 guidance: Management forecast adjusted EPS of $1.42-$1.47, well above the $1.25 analyst consensus. Revenue guidance was approximately $1.51 billion at the midpoint, about 3% above expectations. Twilio earnings beat and guidance
• Positive Sentiment: Full-year outlook improved: Twilio projected 2026 revenue of approximately $6.0 billion, ahead of the $5.8 billion consensus estimate, further supporting the bullish reaction. Twilio second-quarter 2026 results
• Negative Sentiment: Valuation remains a risk: Following the rally, Twilio’s elevated valuation—including a price-to-earnings ratio above 300—leaves the stock vulnerable if AI-related growth slows or future results fail to maintain the current pace of beats.

Hedge Funds Weigh In On Twilio

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp raised its holdings in Twilio by 47.8% in the 3rd quarter. State Street Corp now owns 5,879,395 shares of the technology company’s stock valued at $588,469,000 after acquiring an additional 1,900,551 shares in the last quarter. SRS Investment Management LLC bought a new position in shares of Twilio in the fourth quarter worth $257,494,000. Invesco Ltd. raised its stake in Twilio by 225.0% in the third quarter. Invesco Ltd. now owns 2,009,237 shares of the technology company’s stock valued at $201,105,000 after purchasing an additional 1,391,013 shares in the last quarter. Alyeska Investment Group L.P. lifted its position in Twilio by 39.7% during the third quarter. Alyeska Investment Group L.P. now owns 2,643,859 shares of the technology company’s stock worth $264,624,000 after purchasing an additional 750,951 shares during the period. Finally, Atreides Management LP lifted its position in Twilio by 533.1% during the second quarter. Atreides Management LP now owns 730,300 shares of the technology company’s stock worth $90,820,000 after purchasing an additional 614,943 shares during the period. 84.27% of the stock is owned by institutional investors.

About Twilio

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.