We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TWLO posted Q1 2026 EPS of $1.50, topping the $1.27 estimate, up from $1.14 year over year.
Twilio Q1 2026 revenues jumped 20% to $1.41B, rising 12.6% year over year.
TWLO raised FY26 outlook, projecting revenue growth in the range of 14-15%, up from 11.5-12.5%.
Twilio Inc. (TWLO - Free Report) reported better-than-expected first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. The company’s first-quarter non-GAAP earnings of $1.50 per share surpassed the Zacks Consensus Estimate of $1.27.
The bottom line also witnessed a robust improvement from the year-ago quarter’s earnings of $1.14. The strong year-over-year growth in earnings was primarily driven by increased revenues and cost discipline.
Paycom’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.3%.
The cloud-based communications platform-as-a-service provider registered revenues of $1.41 billion, which surpassed the consensus mark of $1.34 billion and came ahead of management’s guidance of $1.34-$1.35 billion. On a year-over-year basis, the top line soared 20%.
Twilio’s dollar-based net expansion rate was 114% in the reported quarter, in line with the previous quarter’s level and up from the year-ago quarter’s 107%.
The non-GAAP gross profit increased 16% year over year to $697.5 million. However, the non-GAAP gross margin contracted 100 bps year over year to 50%, mainly due to an unfavorable product mix.
The non-GAAP operating income jumped 31% year over year to $278.9 million. The non-GAAP operating margin of 20% for the first quarter expanded 200 bps on a year-over-year basis.
Twilio’s Balance Sheet
The company exited the March quarter with cash and cash equivalents and short-term marketable securities of $2.35 billion, down from $2.47 billion at the end of the previous quarter. As of March. 31, 2026, TWLO’s long-term debt was $992.7 million.
During the first quarter, Twilio generated an operating cash flow of $153.2 million and a free cash flow of $132.3 million. During the quarter, it repurchased shares worth $253.4 million.
As of March. 31, it had approximately $892 million remaining under the current $2 billion share repurchase authorization, which will expire on Dec. 31, 2027.
Twilio Raises FY26 Guidance
For 2026, Twilio anticipates organic revenue growth to be in the range of 9.5-10.5%, up from 8-9%. On a reported basis, it expects revenue growth in the range of 14-15%, up from the 11.5-12.5% range. The Zacks Consensus Estimate for 2026 revenues is pegged at $5.68 billion, indicating a year-over-year increase of 12.1% on a reported basis.
Non-GAAP income from operations is now projected in the range of $1.08-$1.10 billion, up from $1.04-$1.06 billion. Free cash flow for the year is projected to be in the range of $1.08-$1.10 billion, up from $1.04-$1.06 billion.
For the quarter ending June 30, 2026, the company anticipates revenues between $1.42 billion and $1.42 billion, which indicates a year-over-year increase of 15.5-16.5%. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.39 billion, implying a year-over-year increase of 13.3% on a reported basis.
Twilio projects non-GAAP income from operations in the range of $250-$260 million for the second quarter. It forecasts non-GAAP earnings per share in the band of $1.27-$1.32. The consensus mark for second-quarter earnings is pegged at $1.29 per share, indicating a year-over-year increase of 8.4% on a reported basis.
Shares of Arista Networks have gained 32% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by 2 cents over the past 30 days, indicating an increase of 28.7% year over year.
Shares of Advanced Energy have surged 83.4% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, up by 12 cents over the past 60 days, indicating a rise of 29.8% year over year.
Amphenol shares have jumped 9.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.34 per share, up by 2 cents over the past 30 days, indicating an increase of 29.9% year over year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
Twilo's Q1 Earnings Surpass Expectations, Revenues Rise Y/Y
Key Takeaways
Twilio Inc. (TWLO - Free Report) reported better-than-expected first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. The company’s first-quarter non-GAAP earnings of $1.50 per share surpassed the Zacks Consensus Estimate of $1.27.
The bottom line also witnessed a robust improvement from the year-ago quarter’s earnings of $1.14. The strong year-over-year growth in earnings was primarily driven by increased revenues and cost discipline.
Paycom’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.3%.
The cloud-based communications platform-as-a-service provider registered revenues of $1.41 billion, which surpassed the consensus mark of $1.34 billion and came ahead of management’s guidance of $1.34-$1.35 billion. On a year-over-year basis, the top line soared 20%.
Twilio Inc. Price, Consensus and EPS Surprise
Twilio Inc. price-consensus-eps-surprise-chart | Twilio Inc. Quote
Twilio’s Q1 in Details
Twilio’s dollar-based net expansion rate was 114% in the reported quarter, in line with the previous quarter’s level and up from the year-ago quarter’s 107%.
The non-GAAP gross profit increased 16% year over year to $697.5 million. However, the non-GAAP gross margin contracted 100 bps year over year to 50%, mainly due to an unfavorable product mix.
The non-GAAP operating income jumped 31% year over year to $278.9 million. The non-GAAP operating margin of 20% for the first quarter expanded 200 bps on a year-over-year basis.
Twilio’s Balance Sheet
The company exited the March quarter with cash and cash equivalents and short-term marketable securities of $2.35 billion, down from $2.47 billion at the end of the previous quarter. As of March. 31, 2026, TWLO’s long-term debt was $992.7 million.
During the first quarter, Twilio generated an operating cash flow of $153.2 million and a free cash flow of $132.3 million. During the quarter, it repurchased shares worth $253.4 million.
As of March. 31, it had approximately $892 million remaining under the current $2 billion share repurchase authorization, which will expire on Dec. 31, 2027.
Twilio Raises FY26 Guidance
For 2026, Twilio anticipates organic revenue growth to be in the range of 9.5-10.5%, up from 8-9%. On a reported basis, it expects revenue growth in the range of 14-15%, up from the 11.5-12.5% range. The Zacks Consensus Estimate for 2026 revenues is pegged at $5.68 billion, indicating a year-over-year increase of 12.1% on a reported basis.
Non-GAAP income from operations is now projected in the range of $1.08-$1.10 billion, up from $1.04-$1.06 billion. Free cash flow for the year is projected to be in the range of $1.08-$1.10 billion, up from $1.04-$1.06 billion.
For the quarter ending June 30, 2026, the company anticipates revenues between $1.42 billion and $1.42 billion, which indicates a year-over-year increase of 15.5-16.5%. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.39 billion, implying a year-over-year increase of 13.3% on a reported basis.
Twilio projects non-GAAP income from operations in the range of $250-$260 million for the second quarter. It forecasts non-GAAP earnings per share in the band of $1.27-$1.32. The consensus mark for second-quarter earnings is pegged at $1.29 per share, indicating a year-over-year increase of 8.4% on a reported basis.
Twilio’s Zacks Rank & Stocks to Consider
Currently, TWLO carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks (ANET - Free Report) , Advanced Energy (AEIS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Arista Networks have gained 32% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by 2 cents over the past 30 days, indicating an increase of 28.7% year over year.
Shares of Advanced Energy have surged 83.4% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, up by 12 cents over the past 60 days, indicating a rise of 29.8% year over year.
Amphenol shares have jumped 9.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.34 per share, up by 2 cents over the past 30 days, indicating an increase of 29.9% year over year.