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Twilio (TWLO) Outperforms Broader Market: What You Need to Know

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In the latest close session, Twilio (TWLO - Free Report) was up +1.57% at $194.47. This move outpaced the S&P 500's daily gain of 0.02%. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq decreased by 0.18%.

Heading into today, shares of the company had lost 0.06% over the past month, outpacing the Computer and Technology sector's loss of 4.21% and lagging the S&P 500's gain of 0.77%.

The upcoming earnings release of Twilio will be of great interest to investors. The company's earnings report is expected on August 6, 2026. The company is forecasted to report an EPS of $1.32, showcasing a 10.92% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.42 billion, indicating a 15.84% growth compared to the corresponding quarter of the prior year.

TWLO's full-year Zacks Consensus Estimates are calling for earnings of $5.64 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +15.34% and +14.61%, respectively.

Investors might also notice recent changes to analyst estimates for Twilio. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Twilio is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Twilio currently has a Forward P/E ratio of 33.95. This denotes a premium relative to the industry average Forward P/E of 18.86.

We can also see that TWLO currently has a PEG ratio of 1.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.07 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.

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