EarningsQ3 2026 Earnings Report
MX:TWLO Q3 2026 EPS Results
Actual EPS$31.00
Consensus EPS$27.58
Beat/MissBeat by +$3.42
One Year Ago EPS$23.48
MX:TWLO Q3 2026 Revenue Results
Actual Revenue$29.30B
Expected Revenue$28.47B
Beat/MissBeat by +$832.53M
YoY Revenue Growth+19.93%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeAfter Close
Conference CallThursday, October 29, 2026
MX:TWLO Upcoming Earnings
Twilio's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TWLO Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Twilio reported record revenue, gross profit, operating income and free cash flow; raised its full-year 2026 revenue, profit and cash flow guidance; provided a preliminary 2027 outlook above its prior framework; and described broad-based growth, strong customer expansion and increasing AI adoption. The main challenges were Messaging's modest deceleration, carrier-fee-related margin pressure, higher seasonal hosting costs, the nonrecurring benefit from platform credits and the fact that broader AI adoption remains early. These lowlights were outweighed by the company's operating performance, raised outlook and reported momentum across Voice, software add-ons, self-serve and AI-related products.Company Guidance
Record Q3 Revenue and Organic Growth
Q3 revenue reached a record $1.56 billion, up 20% year-over-year on a reported basis and 16% year-over-year on an organic basis, excluding incremental U.S. carrier pass-through fees.
Record Gross Profit and Profitability
Non-GAAP gross profit reached a record $768 million, up 18% year-over-year, marking the third consecutive quarter of 15% plus non-GAAP gross profit growth. Non-GAAP income from operations was a record $326 million, up 39% year-over-year, while GAAP income from operations was $149 million, up 263% year-over-year.
Record Free Cash Flow and Capital Returns
Twilio generated record free cash flow of $370 million in Q3, completed $127 million in share repurchases, and had roughly $700 million remaining under its current buyback authorization.
Operating Leverage and Lower Stock-Based Compensation
Non-GAAP operating margin was 21%, up 290 basis points year-over-year and 190 basis points quarter-over-quarter. Stock-based compensation as a percentage of revenue declined to 9.9%, down 230 basis points year-over-year.
Broad-Based Product and Channel Growth
Growth was broad-based across the portfolio and go-to-market focus areas. Self-serve revenue grew 30% plus, ISV revenue grew 20% plus, Voice revenue grew 20% plus, total software add-on revenue grew 25% plus, and support and services grew 30% plus.
Messaging Growth Supported by WhatsApp and RCS
Messaging revenue grew 24%, driven primarily by strong volumes and aided by growth in WhatsApp and RCS. Incremental carrier fees contributed roughly 7 points to Messaging's growth.
Voice Growth and Software Add-On Adoption
Voice revenue grew 20% plus, driven by a balance of volume growth and software add-ons. Twilio reported triple-digit growth in some products, including Branded Calling and Conversation Intelligence, while Voice software add-on adoption continued to increase.
Improved Customer Expansion
Q3 dollar-based net expansion was 114%, reflecting improved growth trends over the last several quarters. Revenue growth from multiproduct customers continued to outpace the corporate average.
Raised Full-Year 2026 Revenue Outlook
Twilio raised its full-year 2026 organic revenue growth outlook to 15% from 13% to 13.5% previously, and raised its reported revenue growth outlook to 20% from 18% to 18.5% previously.
Raised Full-Year 2026 Profit and Cash Flow Guidance
Full-year 2026 non-GAAP income from operations guidance was raised to $1.19 billion to $1.2 billion from $1.135 billion to $1.155 billion previously. Full-year free cash flow guidance was also raised to $1.19 billion to $1.2 billion.
Strong Q4 Revenue Guidance
Twilio initiated Q4 revenue guidance of $1.595 billion to $1.605 billion, representing 17% to 17.5% reported growth and 11% to 12% organic growth. Management described this as its strongest quarterly revenue guidance in several years.
Positive Preliminary 2027 Outlook
Twilio expects full-year 2027 organic revenue growth of at least 10%, above its 2025 Investor Day framework of 7% to 8% annual organic revenue growth. It expects 2027 non-GAAP income from operations and free cash flow of at least $1.35 billion.
AI Platform and Conversation Layer Momentum
Management said Twilio is in the very early stages of an AI super cycle and that its conversations layer is gaining real momentum. Twilio launched a simplified console and bundled infrastructure, data-hydrated channels, Conversation Relay, Conversation Intelligence, Branded Calling and related capabilities to support agentic experiences.
Identity Product Progress
Twilio launched an identity offering into private beta to help businesses validate who an agent represents across AI modalities, applications, channels and technology protocols. Customer feedback has been encouraging, and management intends to launch the offering into general availability next year.
Strong Voice AI Adoption Pipeline
Voice AI proof-of-concepts are moving into production, with AI-native companies and traditional ISVs reaching significant scale. Voice AI represents about 1% of total voice interactions, and management said self-service Voice growth was over 50%, with another executive citing growth of about 55%.
Customer Wins and Large Expansions
Twilio landed its first 8-figure Conversations deal with a health insurance provider and signed deals with Chapter, Eltropy, ElevenLabs, Gong, HUGO BOSS, Meera.ai, Rivian and Ushur. Ushur signed a 7-figure expansion, Gong signed a 7-figure deal, and Chapter signed a 7-figure deal to migrate its contact center onto Flex.
Customer Outcomes from AI and Multichannel Products
Ushur's customers achieved 3x higher Medicaid re-enrollment completion rates compared with human-led outreach, while Ushur's AI agents automate 20% or more of inbound call volume. Eltropy's voice agents resolve up to 70% of routine member calls, and Meera.ai expanded from Messaging into Voice and the conversations layer.
Self-Serve Customer Expansion Potential
Management said 60% plus of enterprise customers started in self-service and that the $1 million customer cohort was growing as fast as it has in a long time. One cited conversational AI customer increased quarterly connectivity spend threefold, added nearly $0.5 million of software add-ons in the most recent quarter, and surpassed a $6 million annual run rate while growing about 65% with Twilio.
RCS Customer ROI and Market Validation
Management described RCS as a very fast-growing product and said customers using it are receiving superior ROI relative to traditional messaging. Twilio was also named a major player in IDC's 2026 Conversational Intelligence and Analytics MarketScape.
Financial Flexibility and Continued Investment Capacity
Management said Twilio has accelerated revenue and gross profit growth, increased operating leverage, generated substantial free cash flow and reduced dilution over the past three years. It stated that the company has the capacity to invest organically and move nimbly on capital allocation, including additional share repurchases or M&A. The company also made R&D and go-to-market headcount investments during the quarter.
Agent-to-Agent and Consumer-Agent Opportunity
Management said Twilio is working with leading consumer-agent companies and sees opportunities across outbound Voice, Messaging, texting, verification, OTP, orchestration, governance, identity and virtual agents for businesses. It characterized the emerging agent-to-agent landscape as a tailwind and said Twilio's ability to work across policy, protocol and technology frameworks is an advantage.
Upcoming Investor Day
Twilio will host an Investor Day in conjunction with its SIGNAL Conference in San Francisco on April 13 and 14, 2027.
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