Twilio Q4 revenue beats analyst expectations

Twilio

12/02/2026 21:24

Overview

Customer engagement platform's Q4 revenue grew 14% yr/yr, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company repurchased $198 mln worth of shares in Q4

Outlook

Twilio expects Q1 2026 revenue between $1.335 bln and $1.345 bln

Company forecasts FY26 revenue growth of 11.5% to 12.5%

Twilio anticipates FY26 non-GAAP income from operations of $1.04 bln to $1.06 bln

Result Drivers

REVENUE GROWTH - Twilio's Q4 revenue increased 14% yr/yr, with organic growth at 12%, attributed to balanced execution and AI innovation, per CEO Khozema Shipchandler

CUSTOMER BASE EXPANSION - Active customer accounts grew to over 402,000, up from 325,000, contributing to revenue growth

CASH FLOW IMPROVEMENT - Free cash flow increased significantly to $256.1 mln in Q4, reflecting improved financial efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.37 bln
$1.32 bln (23 Analysts)
Q4 Adjusted EPS
Beat
$1.33
$1.24 (23 Analysts)
Q4 EPS
-$0.30
Q4 Adjusted Operating Income
$255.60 mln
Q4 Gross Profit
$662.35 mln
Q4 Operating Income
$56.78 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Twilio Inc is $147.50, about 33.6% above its February 11 closing price of $110.44

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nBwMm9hga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)