Twilio Q2 Earnings Jump on Beat and Outlook Raise
Twilio Q2 earnings beat on Aug. 6, 2026, and management raised 2026 guidance, prompting renewed trading interest and heavier flows around the stock.
KEY TAKEAWAYS
- Twilio reported Q2 revenue of $1.5 billion, up 22.0% reported and 17.0% organic year over year.
- The quarter produced record non-GAAP income from operations of $285 million and free cash flow of $353 million.
- Management raised full-year 2026 reported revenue-growth guidance to 18.0%-18.5% and organic growth to 13.0%-13.5%.
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Twilio (TWLO) surprised investors on Aug. 6, 2026, by reporting stronger-than-expected second-quarter results and raising its full-year 2026 revenue outlook, citing accelerating organic growth, record profitability, and robust cash generation.
Q2 Results and Outlook
Twilio issued its second-quarter 2026 results in a press release on Aug. 6 at 4:05 p.m. ET, accompanied by an earnings presentation. The company reported revenue of $1.5 billion, up 22.0% on a reported basis and 17.0% organically year over year. Non-GAAP diluted earnings per share (EPS) were $1.47, while non-GAAP gross profit rose 18.0% to $736 million.
The quarter delivered record non-GAAP income from operations of $285 million and free cash flow of $353 million, highlighting stronger cash generation. GAAP diluted EPS was $6.68, which included a $5.91 per-share non-cash benefit from releasing a significant portion of the U.S. deferred-tax valuation allowance.
CEO Khozema Shipchandler said the quarter reflected organic growth acceleration, record profitability, and strong cash flow. He added, “We are in a powerful new chapter at Twilio, marked by another quarter of organic growth acceleration as well as record profitability and free cash flow.”
Twilio raised its full-year 2026 guidance for reported revenue growth to 18.0%–18.5%, up from 14.0%–15.0%, and for organic revenue growth to 13.0%–13.5%, up from 9.5%–10.5%. The company also increased its full-year non-GAAP income-from-operations and free cash flow guidance to $1.1 billion–$1.2 billion and projected third-quarter revenue of roughly $1.5 billion.
