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Twilio Gears Up to Report Q3 Earnings: Is a Beat in Store for TWLO?
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Key Takeaways
Twilio is expected to beat Q3'26 earnings estimates, with consensus EPS of $1.46, up 16.8% year over year.
AI upgrades, new Conversations Layer tools and an expanded partner network could boost Twilio's Q3 results.
Twilio faces pricing and carrier-cost pressure, while delayed enterprise IT spending could weigh on Q3 growth.
Twilio Inc. (TWLO - Free Report) is likely to surpass earnings estimates when it reports third-quarter 2026 results on Oct. 29, after market close.
Twilio anticipates non-GAAP earnings per share between $1.42 and $1.47. The Zacks Consensus Estimate for third-quarter earnings has remained unchanged at $1.46 per share over the past 60 days, suggesting an improvement of 16.8% from the year-ago quarter’s $1.25.
TWLO’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being approximately 14%.
For the third quarter, the company anticipates revenues between $1.505 billion and $1.515 billion. The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, indicating an increase of 16.3% from the year-ago quarter’s revenues of $1.30 billion.
Factors Likely to Influence TWLO’s Q3 Results
Twilio’s third-quarter results are likely to reflect gains from sustained digital transformation efforts as enterprises continue to reconfigure their setup for a hybrid operational environment. TWLO’s initiatives to expand its network with independent software vendors and global partners are likely to have positively impacted the third-quarter performance.
New product launches, including rich communication services and artificial intelligence (AI) enhancements, particularly with the integration of OpenAI’s Realtime API into Twilio’s platform, are expected to contribute to the to-be-reported-quarter’s results. Its new Conversations Layer includes Conversation Memory, Conversation Orchestrator, Conversation Intelligence, Conversation Relay and Agent Connect. These products are likely to have attracted more customers in the third quarter.
Solutions like Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface may have contributed to the third-quarter performance. The company’s integration of AI in several communication and segment products is expected to have favored its third-quarter 2025 performance.
Nonetheless, its communications business faces pricing and carrier-cost pressure, which is anticipated to have negatively impacted third-quarter profitability. In the second quarter of 2026, the cost of revenues rose to $773.2 million from $625.7 million a year earlier, while GAAP gross margin was about 48% versus roughly 49% in the prior-year quarter. Twilio can pass certain A2P fees through to customers, but network cost changes and product mix can still limit gross margin expansion.
Ongoing macroeconomic challenges are likely to have hurt TWLO’s top line in the to-be-reported quarter. Enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
What the Zacks Model Unveils for TWLO
Our proven model predicts an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Twilio has an Earnings ESP of +1.71% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.
Seagate Technology (STX - Free Report) has an Earnings ESP of +2.07% and sports a Zacks Rank #1 at present. Seagate Technology is set to report first-quarter fiscal 2027 results on Oct. 27.
The Zacks Consensus Estimate for Seagate Technology’s first-quarter fiscal 2027 earnings is pegged at $7.44 per share, up by 10 cents over the past seven days, indicating a rise of 185.1% from the year-ago quarter’s reported figure.
Amphenol (APH - Free Report) has an Earnings ESP of +1.72% and carries a Zacks Rank #2 at present. Amphenol is set to report third-quarter 2026 results on Oct. 28.
The Zacks Consensus Estimate for Amphenol’s third-quarter 2026 earnings is pegged at 73 cents per share, up by a penny over the past seven days, calling for a jump of 55.3% from the year-ago quarter’s reported figure.
Corning (GLW - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2 at present. Corning is slated to report third-quarter 2026 results on Oct. 27.
The Zacks Consensus Estimate for Corning’s third-quarter 2026 earnings is pegged at 89 cents per share, up by a penny over the past seven days, suggesting an increase of 32.8% from the year-ago quarter’s reported figure.
View the Zacks #1 Rank List
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Twilio Gears Up to Report Q3 Earnings: Is a Beat in Store for TWLO?
Key Takeaways
Twilio Inc. (TWLO - Free Report) is likely to surpass earnings estimates when it reports third-quarter 2026 results on Oct. 29, after market close.
Twilio anticipates non-GAAP earnings per share between $1.42 and $1.47. The Zacks Consensus Estimate for third-quarter earnings has remained unchanged at $1.46 per share over the past 60 days, suggesting an improvement of 16.8% from the year-ago quarter’s $1.25.
TWLO’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being approximately 14%.
Twilio Inc. Price and EPS Surprise
Twilio Inc. price-eps-surprise | Twilio Inc. Quote
For the third quarter, the company anticipates revenues between $1.505 billion and $1.515 billion. The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, indicating an increase of 16.3% from the year-ago quarter’s revenues of $1.30 billion.
Factors Likely to Influence TWLO’s Q3 Results
Twilio’s third-quarter results are likely to reflect gains from sustained digital transformation efforts as enterprises continue to reconfigure their setup for a hybrid operational environment. TWLO’s initiatives to expand its network with independent software vendors and global partners are likely to have positively impacted the third-quarter performance.
New product launches, including rich communication services and artificial intelligence (AI) enhancements, particularly with the integration of OpenAI’s Realtime API into Twilio’s platform, are expected to contribute to the to-be-reported-quarter’s results. Its new Conversations Layer includes Conversation Memory, Conversation Orchestrator, Conversation Intelligence, Conversation Relay and Agent Connect. These products are likely to have attracted more customers in the third quarter.
Solutions like Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface may have contributed to the third-quarter performance. The company’s integration of AI in several communication and segment products is expected to have favored its third-quarter 2025 performance.
Nonetheless, its communications business faces pricing and carrier-cost pressure, which is anticipated to have negatively impacted third-quarter profitability. In the second quarter of 2026, the cost of revenues rose to $773.2 million from $625.7 million a year earlier, while GAAP gross margin was about 48% versus roughly 49% in the prior-year quarter. Twilio can pass certain A2P fees through to customers, but network cost changes and product mix can still limit gross margin expansion.
Ongoing macroeconomic challenges are likely to have hurt TWLO’s top line in the to-be-reported quarter. Enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
What the Zacks Model Unveils for TWLO
Our proven model predicts an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Twilio has an Earnings ESP of +1.71% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TWLO currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With the Favorable Combination
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.
Seagate Technology (STX - Free Report) has an Earnings ESP of +2.07% and sports a Zacks Rank #1 at present. Seagate Technology is set to report first-quarter fiscal 2027 results on Oct. 27.
The Zacks Consensus Estimate for Seagate Technology’s first-quarter fiscal 2027 earnings is pegged at $7.44 per share, up by 10 cents over the past seven days, indicating a rise of 185.1% from the year-ago quarter’s reported figure.
Amphenol (APH - Free Report) has an Earnings ESP of +1.72% and carries a Zacks Rank #2 at present. Amphenol is set to report third-quarter 2026 results on Oct. 28.
The Zacks Consensus Estimate for Amphenol’s third-quarter 2026 earnings is pegged at 73 cents per share, up by a penny over the past seven days, calling for a jump of 55.3% from the year-ago quarter’s reported figure.
Corning (GLW - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2 at present. Corning is slated to report third-quarter 2026 results on Oct. 27.
The Zacks Consensus Estimate for Corning’s third-quarter 2026 earnings is pegged at 89 cents per share, up by a penny over the past seven days, suggesting an increase of 32.8% from the year-ago quarter’s reported figure.