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Why Twilio (TWLO) Dipped More Than Broader Market Today

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Twilio (TWLO - Free Report) closed the most recent trading day at $253.63, moving -4.89% from the previous trading session. This change lagged the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw an upswing of 0.02%, while the tech-heavy Nasdaq depreciated by 2.6%.

Coming into today, shares of the company had lost 8.26% in the past month. In that same time, the Computer and Technology sector lost 3.87%, while the S&P 500 lost 0.03%.

Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. The company's upcoming EPS is projected at $1.46, signifying a 16.80% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.51 billion, indicating a 16.34% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.92 per share and a revenue of $5.98 billion, signifying shifts of +21.06% and +18.06%, respectively, from the last year.

Any recent changes to analyst estimates for Twilio should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. Twilio is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 45.08. This valuation marks a premium compared to its industry average Forward P/E of 20.59.

Meanwhile, TWLO's PEG ratio is currently 2.88. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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