Twilio (TWH) AI Stock Analysis

Company Guidance

For Q4, Twilio is initiating a revenue target of $1.595 billion to $1.605 billion, representing 17% to 17.5% reported growth and 11% to 12% organic growth, with approximately $75 million in incremental U.S. carrier fees; non-GAAP gross profit growth is expected to be similar to organic revenue growth. For full year 2026, Twilio is raising its organic revenue growth outlook to 15% from 13% to 13.5% previously and its reported revenue growth outlook to 20% from 18% to 18.5% previously, while continuing to expect non-GAAP gross profit growth to be similar to its organic revenue growth rate; full year revenue guidance assumes approximately $245 million in incremental pass-through revenue from U.S. carrier fees, which are expected to reduce full year 2026 non-GAAP gross margin by roughly 200 basis points compared with full year 2025 non-GAAP gross margin, all else equal. Q4 non-GAAP income from operations is expected to be $300 million to $310 million, full year 2026 non-GAAP income from operations is expected to be $1.19 billion to $1.2 billion, and full year free cash flow guidance is $1.19 billion to $1.2 billion. For full year 2027, Twilio expects organic revenue growth of at least 10%, non-GAAP gross profit growth similar to organic revenue growth, non-GAAP income from operations of at least $1.35 billion, and free cash flow of at least $1.35 billion.