Twilio earnings: guidance and what to watch
Twilio's next results are October 29, 2026. Twilio should be watched for organic growth, gross-profit growth and cash generation.
What has Twilio guided for 2026?
Management guides to 18.0%–18.5% revenue growth in 2026. Organic growth guidance is 13.0%–13.5%. It guides to $1.135–$1.155 billion of non-GAAP operating income and free cash flow. Its longer-term promise is $3 billion of cumulative free cash flow for 2025–2027, with stock compensation at 10% of revenue in 2027.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Revenue | Quarter to Sep 2026 | 1,505 | 1,515 | Aug 6, 2026 |
| Y/Y Revenue Growth (Year to Dec 2026) | Year to Dec 2026 | 18.0% | 18.5% | Aug 6, 2026 |
| Y/Y Organic Revenue Growth (Year to Dec 2026) | Year to Dec 2026 | 13.0% | 13.5% | Aug 6, 2026 |
| Non-GAAP income from operations (Year to Dec 2026) | Year to Dec 2026 | 1,135 | 1,155 | Aug 6, 2026 |
| Free cash flow | Year to Dec 2026 | 1,135 | 1,155 | Aug 6, 2026 |
Has Twilio kept its past promises?
Management made two concrete promises. Segment was targeted to reach break-even adjusted operating income by the second quarter of 2025, and Twilio was targeted to reach GAAP operating profitability by the fourth quarter of 2025. Segment reported US$6.009 million of adjusted operating income in that quarter, while Twilio reached its first GAAP operating profit earlier, in the fourth quarter of 2024.
What have Twilio's last eight quarters shown?
Revenue reached 1,499,089 in June 2026, compared with 1,228,425 a year earlier. Operating income reached 84,546, compared with 36,989 in the prior-year quarter. Gross profit and operating income therefore support a real operating recovery.
The latest quarter therefore combines a credible operating recovery with a one-time tax benefit that makes the headline profit look extraordinary.
| Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,499,089 | 1,406,907 | 1,365,930 | 1,300,402 | 1,228,425 | 1,172,463 | 1,194,835 | 1,133,649 |
| Gross margin | 48.4% | 48.6% | 48.5% | 48.6% | 49.1% | 49.6% | 50.2% | 51.0% |
| Operating income | 84,546 | 107,666 | 56,783 | 40,948 | 36,989 | 23,082 | 13,727 | -4,894 |
| Net income | 1,067,209 | 90,139 | -45,854 | 37,248 | 22,423 | 20,017 | -12,470 | -9,726 |
| EPS, diluted | 6.68 | 0.57 | -0.30 | 0.23 | 0.14 | 0.12 | -0.08 | -0.06 |
What this means. The June 2026 profit looks unusually high because it includes a one-time tax benefit, not just money earned from the business.
What should Twilio watch in the next results?
Twilio will report Q3 results after the market closes on October 29, 2026. Investors should first check whether organic growth supports the annual forecast. They should then compare cash generation with the amount needed in the second half. Finally, they should compare reported growth with organic growth, because a widening gap may indicate more carrier charges rather than stronger customer activity.