NEW YORK, August 7, 2026, 11:05 a.m. EDT
- Twilio stock climbed 28.4% to $248.14 as of 11:02 a.m. EDT, hitting a 52-week record high of $249.44.
- Twilio Inc. reported a 22% increase in second-quarter revenue, with organic revenue up 17% and free-cash-flow margin achieving 24%.
- Twilio raised its projection for full-year organic growth to a range of 13% to 13.5%. The company’s stock is now trading above the average analyst target listed by FactSet.
Intraday market data are initial figures, recorded at the specified times.
Twilio Inc. NYSE:TWLO jumped in early New York trading after reporting second-quarter revenue, non-GAAP earnings, and outlook that topped forecasts. The stock’s increase outpaced the technology sector’s 0.6% rise.
The underlying signal was less prominent than the headline result. The quarterly Rule-of-40 metric hit 41, made up of 17% organic growth and a 24% free-cash-flow margin.
Management’s charts over five quarters show this was the peak reading. The same metric was at 25 in the first quarter, ranging from 31 to 34 across the prior three periods.
The quarter surpassed Wall Street forecasts as well as Twilio’s previously provided guidance ranges.
| Q2 metric | Actual | Comparison base | Beat or change |
|---|---|---|---|
| Revenue | $1.499 billion | $1.43 billion consensus | +4.8% |
| Non-GAAP EPS | $1.47 | $1.32 consensus | +11.4% |
| Organic revenue growth | 17% | 10%-11% prior guidance | +6.5 percentage points |
| Non-GAAP operating income | $284.6 million | $250-$260 million prior guidance | +11.6% |
| Free cash flow | $352.6 million | $263.5 million a year ago | +33.8% |
*Relative to the midpoint of the range.
Free cash flow increased at a quicker pace than revenue. Dollar-based net expansion climbed to 116%, up from 108%, reflecting increased expenditure from current customer groups.
Stock-based compensation as a percentage of revenue dropped to 9.5%, down from 12.1% in the same period one year earlier, indicating reduced equity-pay pressure.
The five-quarter calculation underlines the progress in growth quality.
| Quarter | Organic growth | FCF margin | Quarterly Rule-of-40 proxy |
|---|---|---|---|
| Q2 2025 | 13% | 21% | 34 |
| Q3 2025 | 13% | 19% | 32 |
| Q4 2025 | 12% | 19% | 31 |
| Q1 2026 | 16% | 9% | 25 |
| Q2 2026 | 17% | 24% | 41 |
Based on company information. This is a quarterly, non-GAAP metric that Twilio does not disclose.
The calculation is an investor tool rather than official company guidance. Nevertheless, the composition indicates that growth was not driven exclusively by acquisitions or by increased stock-based compensation.
Chief Executive Khozema Shipchandler described the quarter as “a powerful new chapter.” He highlighted rising organic growth, record-high profitability, and record levels of free cash flow. Twilio Inc.
Management lifted the full-year guidance across all four main ranges.
| Full-year 2026 measure | Previous guidance | New guidance | Midpoint increase |
|---|---|---|---|
| Reported revenue growth | 14%-15% | 18%-18.5% | +3.75 percentage points |
| Organic revenue growth | 9.5%-10.5% | 13%-13.5% | +3.25 percentage points |
| Non-GAAP operating income | $1.08-$1.10 billion | $1.135-$1.155 billion | Increase of $55 million, or 5.0% |
| Free cash flow | $1.08-$1.10 billion | $1.135-$1.155 billion | Increase of $55 million, or 5.0% |
The midpoint for third-quarter revenue guidance stands at $1.510 billion, roughly 3% higher than the consensus before the report. Still, organic growth guidance eases to 11%-12%, down from 17% in the prior quarter.
William Blair analyst Arjun Bhatia stated that “AI voice use-cases are building.” He pointed out that voice accounts for less than 15% of revenue, which restricts its present impact. Investor’s Business Daily
Of the 34 FactSet ratings, 27 were Buy or Overweight. Still, most of the upside to published target prices has already been captured by the rally.
| Analyst recommendation | Current | One month ago | Change |
|---|---|---|---|
| Buy | 22 | 20 | +2 |
| Overweight | 5 | 5 | — |
| Hold | 4 | 5 | -1 |
| Underweight | 2 | 2 | — |
| Sell | 1 | 1 | — |
| Consensus | Overweight | Overweight | — |
Twilio shares traded at $248.14, representing a 0.8% premium over the FactSet average price target of $246.18. The stock was still 1.8% under the median target of $252.50, with analyst targets spanning from $165 to $330.
At around 10:50 a.m. EDT, Twilio led gains in communications software stocks.
| Company | Indicative price | Session change |
|---|---|---|
| Twilio Inc. NYSE:TWLO | $246.30 | up 27.5% |
| Bandwidth Inc. NASDAQ:BAND | $52.85 | up 18.3% |
| Five9 Inc. NASDAQ:FIVN | $33.24 | up 17.2% |
| RingCentral Inc. NYSE:RNG | $63.73 | up 3.1% |
Risks: The 41-point proxy reflects a single quarter and may be skewed by the timing of working capital. Organic growth guidance is set to slow in the upcoming quarter, AI voice is still limited in size, and the stock is currently close to the median analyst price target.
