TLDR
- Twilio Q2 revenue hit $1.50 billion, beating the $1.43 billion estimate by 5%
- Adjusted EPS of $1.47 topped the $1.32 forecast by more than 11%
- Full-year 2026 revenue growth outlook raised to 18%-18.5%, up from 14%-15%
- TWLO hit a 52-week high of $238.48, last trading up ~30% at $249.44
- At least four analysts raised price targets, with targets now ranging up to $285
Twilio stock surged around 30% on Friday after the company reported second-quarter results that topped Wall Street estimates on both revenue and earnings.
Q2 revenue came in at $1.50 billion, up 22% year-over-year and ahead of the $1.43 billion consensus. Adjusted EPS of $1.47 beat the $1.32 estimate by more than 11%. CEO Khozema Shipchandler called the period a “powerful new chapter” for Twilio.
Operating cash flow reached $372.4 million and free cash flow totaled $352.6 million. Shipchandler described both as records for the company.
Organic revenue grew 17% year-over-year to $1.499 billion. Including U.S. carrier pass-through fees, that growth rate rises to 22%.
This marks the fifth consecutive quarter of accelerating non-GAAP gross profit growth for Twilio. That streak is starting to turn heads on Wall Street.
Guidance Gets a Big Lift
Third-quarter revenue guidance came in at $1.51 billion to $1.52 billion, ahead of analyst expectations. Adjusted EPS guidance for Q3 was set at $1.42 to $1.47 per share.
The bigger story was the full-year outlook. Twilio raised its 2026 revenue growth forecast to 18%-18.5%, a sharp jump from the prior range of 14%-15%.
Twilio also bought back $66 million of its own stock during the quarter. The company had $826 million in remaining repurchase capacity as of June 30.
Analysts Raise Price Targets
Multiple analysts updated their price targets following the results.
BTIG’s Nick Altmann raised his target to $285 from $245, keeping a Buy rating. Needham’s Joshua Reilly lifted his target to $280 from $250, also maintaining Buy.
Rosenblatt’s Catharine Trebnick raised her target to $275 from $230 with a Buy rating. Keybanc’s Jackson Ader bumped his target to $250 from $200, keeping an Overweight rating.
TD Cowen and Stifel also raised their targets to $260 and $275, respectively.
From a technical standpoint, TWLO is sitting well above its key moving averages. The stock is 20.4% above its 20-day SMA and 58.7% above its 200-day SMA. RSI sits at 73.72, firmly in overbought territory.
The stock crossed a 52-week high of $238.48 before pushing further. TWLO was last trading at $249.44, up 29.11% on the day.
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