Key Highlights
- Second-quarter revenue reached $1.50 billion, surpassing the Street estimate of $1.43 billion by 5%
- Non-GAAP earnings per share of $1.47 exceeded consensus forecast of $1.32 by over 11%
- Company increased its 2026 full-year revenue growth projection to 18%-18.5% from previous 14%-15%
- Shares reached a 52-week peak of $238.48, eventually trading approximately 30% higher at $249.44
- Multiple Wall Street firms upgraded their price targets, with some reaching as high as $285
Shares of Twilio skyrocketed approximately 30% during Friday’s trading session following the cloud communications platform’s impressive second-quarter financial performance that exceeded analyst projections across key metrics.
The company posted quarterly revenue of $1.50 billion, representing a 22% year-over-year increase and surpassing the Street consensus of $1.43 billion. Non-GAAP earnings per share landed at $1.47, exceeding expectations of $1.32 by more than 11%. Chief Executive Khozema Shipchandler characterized the results as marking a “powerful new chapter” in the company’s trajectory.
Cash flow metrics also impressed, with operating cash flow hitting $372.4 million and free cash flow coming in at $352.6 million. Shipchandler highlighted both figures as company records.
Organic revenue expansion clocked in at 17% year-over-year, totaling $1.499 billion. When factoring in U.S. carrier pass-through fees, that growth metric jumps to 22%.
The quarter represented Twilio’s fifth straight period of accelerating non-GAAP gross profit growth. This consistent performance trend is capturing increasing attention from the investment community.
Forward Outlook Receives Substantial Upgrade
For the third quarter, management projected revenue between $1.51 billion and $1.52 billion, exceeding Wall Street’s expectations. Non-GAAP earnings per share guidance for Q3 was established at $1.42 to $1.47.
The most significant development came in the full-year guidance. Twilio elevated its 2026 revenue growth outlook to 18%-18.5%, representing a notable increase from the previous range of 14%-15%.
During the quarter, the company executed $66 million worth of share buybacks. As of June 30, Twilio maintained $826 million in remaining buyback authorization.
Wall Street Responds with Higher Price Objectives
Several equity research firms revised their price targets upward in response to the quarterly results.
BTIG analyst Nick Altmann increased his price objective to $285 from $245 while reiterating a Buy rating. Needham’s Joshua Reilly elevated his target to $280 from $250, also maintaining a Buy recommendation.
Rosenblatt’s Catharine Trebnick boosted her target to $275 from $230 with a Buy rating intact. Keybanc’s Jackson Ader raised his price objective to $250 from $200 while keeping an Overweight stance.
TD Cowen and Stifel similarly increased their targets to $260 and $275, respectively.
From a technical analysis perspective, TWLO is trading substantially above critical moving averages. The equity stands 20.4% above its 20-day simple moving average and 58.7% above its 200-day simple moving average. The Relative Strength Index registers at 73.72, indicating overbought conditions.
The stock surpassed its previous 52-week high of $238.48 before continuing its advance. TWLO most recently changed hands at $249.44, representing a 29.11% gain for the session.
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