EarningsQ2 2026 Earnings Report
MX:TWLO Q2 2026 EPS Results
Actual EPS$25.32
Consensus EPS$22.81
Beat/MissBeat by +$2.51
One Year Ago EPS$20.50
MX:TWLO Q2 2026 Revenue Results
Actual Revenue$25.82B
Expected Revenue$24.65B
Beat/MissBeat by +$1.17B
YoY Revenue Growth+22.03%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:TWLO Upcoming Earnings
Twilio's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:TWLO Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong positive operational and financial momentum: record revenue, gross profit, non-GAAP operating income and free cash flow, broad-based product and channel growth (notably messaging, voice, software add-ons, self-serve and ISVs), high dollar-based net expansion (116%), major customer wins and meaningful early production adoption of the new Conversations platform. Management raised both near-term and full-year organic and reported revenue guidance and upgraded profitability and free cash flow targets. The primary headwind is incremental U.S. carrier pass-through fees (~$71M in Q2, ~ $250M expected full year) that mechanically reduce reported margins and are being passed through to customers, creating pressure for some SMBs; there are also one-time GAAP adjustments and early-stage AI/RCS adoption that temper the near-term outlook. Overall, highlights significantly outweigh the lowlights, with management framing fee-driven margin impacts as largely transitory and the underlying business showing durable secular tailwinds from AI and multiproduct adoption.Company Guidance
Record Revenue and Accelerating Organic Growth
Q2 revenue of $1.5 billion, up 22% year-over-year reported and 17% year-over-year on an organic basis (organic excludes incremental U.S. carrier pass-through fees).
Record Non-GAAP Gross Profit and Margin Momentum
Non-GAAP gross profit reached a record $736 million, accelerating 18% year-over-year (fifth consecutive quarter of accelerating non-GAAP gross profit growth). Non-GAAP gross margin was 49.1%.
Record Profitability and Cash Generation
Record non-GAAP income from operations of $285 million (up 29% year-over-year) and record free cash flow of $353 million. Full-year non-GAAP income from operations guidance raised to $1.135B–$1.155B; full-year free cash flow guidance raised to $1.135B–$1.155B.
Strong Dollar-Based Net Expansion
Dollar-based net expansion rate of 116%, reflecting improving expansion trends within the installed base (note management disclosed ~5 points contribution from incremental carrier fees).
Robust Product and Channel Performance
Messaging revenue grew 28% year-over-year (incremental carrier fees contributed ~10 percentage points); Voice grew above 20% year-over-year. Total software add-on revenue grew 25%+, with Verify accelerating to 30%+ growth. Self-serve channel revenue grew 30%+, ISV revenue grew 25%+.
Customer Wins and Early AI Production Use Cases
Multiple large wins including an 8-figure deal with a leading AI company and several 7-figure deals (Car Finance 247, Eltropy, Olo, Atlassian, etc.). Example: Car Finance 247's AI assistant handled ~300,000 conversations and converts to approved leads 1.6x faster, driving multimillion-dollar annual uplift.
New Platform and Console Adoption
General availability of the next-generation Conversations layer (Conversation Memory, Orchestrator, Intelligence, Relay, Agent Connect) and redesigned Twilio Console launched in May. Majority of existing customers migrated to the new console; management reported a 90%+ uplift in conversions versus the old console.
Upgraded Revenue Guidance
Q3 revenue guidance of $1.505B–$1.515B (16%–16.5% reported growth; 11%–12% organic). Full-year reported revenue guidance raised to 18%–18.5% (from 14%–15%), and full-year organic growth raised to 13%–13.5% (from 9.5%–10.5%).
Industry Recognition
Named a Leader by Gartner in the 2026 Magic Quadrant CPaaS Report (highest in ability to execute) and a Leader in the 2026 IDC MarketScape for AI-enabled CDP.
Capital Returns and Balance Sheet Actions
Completed $66 million of share repurchases in Q2 with approximately $800 million remaining on current authorization.
MX:TWLO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed