The raised full-year guidance across revenue, operating income, and free cash flow signals accelerating momentum and operating leverage. Watch Q4 2026 revenue trajectory against the 17-17.5% guidance range and any further margin expansion commentary on the earnings call.
Price Chart
Executive Summary
Twilio reported Q3 2026 revenue of $1.56B (up 20% YoY) and non-GAAP EPS of $1.65, above the $1.47 consensus. The company raised its full-year 2026 revenue growth outlook to 20% (from 18-18.5%) and its non-GAAP income from operations range to $1.19-1.20B, signaling accelerating profitability and top-line momentum.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $1.56B, up 20% YoY (16% organic)
- Non-GAAP EPS of $1.65 vs consensus of $1.47 (beat by 12.2%)
- GAAP EPS of $1.00 vs $0.23 in Q3 2025
- Non-GAAP income from operations of $326M, up 39% YoY
- Free cash flow of $370M, up 49% YoY, representing 24% margin
- Full-year 2026 revenue growth outlook raised to 20% from 18-18.5%
- Full-year 2026 non-GAAP income from operations raised to $1.19-1.20B from $1.135-1.155B
- Full-year 2026 free cash flow raised to $1.19-1.20B from $1.135-1.155B
- Dollar-Based Net Expansion Rate of 114% vs 109% in Q3 2025
- Q4 2026 revenue guidance of $1.595-1.605B, implying 17-17.5% YoY growth
Financial Impact
Revenue beat consensus by ~$50M (3.3%), EPS beat by $0.18 (12.2%); full-year guidance raised by ~1.5 points on revenue growth and ~$50M on operating income
Risk Factors
- Organic revenue growth of 16% is below reported 20% due to A2P fee pass-through, which may compress if carrier fees rise
- Stock-based compensation remains elevated at $154M (9.9% of revenue), though declining as a percentage
- Equity method investment losses of $25.5M continue to weigh on GAAP net income
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001447669-26-000106 |
| Document: twlo-20261029.htm | 0001447669-26-000106 |
| Document: 0001447669-26-000106-index-headers.html | 0001447669-26-000106 |
| Document: 0001447669-26-000106-index.html | 0001447669-26-000106 |
| Document: 0001447669-26-000106.txt | 0001447669-26-000106 |
| 8-K Data (Synthetic) | 0001447669-26-000106 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 2d ago | SC 13G/A | $202.16 | awaiting T+20 | awaiting T+20 | $205.03 (+1.42%) |
Oct 29, 2026 3d ago | 8-K | $203.43 | awaiting T+20 | awaiting T+20 | $205.03 (+0.79%) |
Oct 23, 2026 9d ago | Institutional Cluster | $261.79 | awaiting T+20 | awaiting T+20 | $205.03 (−21.68%) |
Oct 2, 2026 4w ago | Insider Cluster | $300.91 | awaiting T+20 | awaiting T+20 | $205.03 (−31.86%) |
Aug 19, 2026 10w ago | Insider Cluster | $219.89 $243.84 | ▲ +10.89% | ▲ +10.76% | $205.03 (−6.76%) |
Aug 10, 2026 11w ago | 144 | $255.95 $227.19 | ▼ −11.24% | ▼ −10.18% | $205.03 (−19.89%) |
Jul 8, 2026 16w ago | Insider Cluster | $218.60 $193.20 | ▼ −11.62% | ▼ −13.86% | $205.03 (−6.21%) |
Jul 7, 2026 16w ago | Insider Cluster | $215.50 $193.22 | ▼ −10.34% | ▼ −13.61% | $205.03 (−4.86%) |
Jul 2, 2026 17w ago | Insider Cluster | $209.08 $196.59 | ▼ −5.97% | ▼ −6.82% | $205.03 (−1.94%) |
Jun 17, 2026 19w ago | 8-K | $186.17 $206.70 | ▲ +11.03% | ▲ +10.49% | $205.03 (+10.13%) |
US Market Status
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