10-Q · May 1, 2026
Twilio Inc. reported impressive Q1 2026 results, with revenue reaching $1.41 billion, a 20% increase year-over-year, significantly beating the estimated revenue of $1.34 billion. EPS also surpassed expectations at $1.50…
Earnings analysis · 10-Q
TWLO earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Twilio delivered a strong Q2 2026, with revenue of $1.499 billion and diluted EPS of $1.47, both materially above the prior Q2 outlook and well ahead of Q1 and the prior-year quarter. Reported liquidity was substantial…
Read full summary
Twilio delivered a strong Q2 2026, with revenue of $1.499 billion and diluted EPS of $1.47, both materially above the prior Q2 outlook and well ahead of Q1 and the prior-year quarter. Reported liquidity was substantial at $2.623 billion of cash, cash equivalents, and marketable securities, while the company continued its share-repurchase program. The filing does not provide current gross margin, operating margin, free cash flow, segment revenue, or new quantitative guidance, and highlights material risks from usage-based demand, AI execution and regulation, cybersecurity, international operations, debt, and indirect taxes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.47
What stood out
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Revenue accelerated and beat prior outlook
Q2 revenue was $1.499 billion, up approximately 6.3% from $1.41 billion in Q1 2026 and approximately 21.9% from $1.23 billion in Q2 2025. Revenue exceeded the prior Q2 outlook range of $1.42-$1.43 billion.
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EPS materially exceeded expectations
Diluted EPS was $1.47 versus $0.57 in Q1 2026 and $0.14 in Q2 2025, an increase of $0.90 sequentially and $1.33 year over year. EPS also exceeded the prior Q2 outlook range of $1.27-$1.32.
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Substantial liquidity position
The company held $823.3 million of cash and cash equivalents and $1.8 billion of marketable securities as of June 30, 2026, providing $2.623 billion of reported cash and liquid investments for working-capital and investment purposes.
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Controls remained effective
Management concluded that disclosure controls and procedures were effective as of June 30, 2026, and reported no changes during the quarter that materially affected, or were reasonably likely to materially affect, internal control over financial reporting.
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International platform scale
International customer accounts represented 36% of revenue in the six months ended June 30, 2026, versus 36% in 2025 and 35% in 2024, demonstrating a significant global revenue exposure.
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Ongoing capital return
The company repurchased $1.2 billion of common stock under its $2.0 billion authorization as of June 30, 2026, leaving approximately $826.0 million available; it repurchased 496 thousand shares in April at an average price of $133.18.
What to watch
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Debt limits financial flexibility
The company had $1.0 billion of indebtedness outstanding as of June 30, 2026. Management warns that insufficient cash flows could force reductions or delays in capital expenditures, asset sales, additional financing, or debt restructuring.
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Usage and international margin exposure
The filing identifies usage-based demand as a key exposure: the majority of revenue is usage-based and customers may reduce or cease usage without penalty. International customer accounts represented 36% of six-month revenue, where international message gross margins are typically lower than domestic margins.
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AI execution and asset impairment risk
The filing adds or expands several AI-related exposures, including autonomous agentic AI actions and AI-facilitated cyberattacks, while also noting that the company expects significant competition for AI talent and may face new legal obligations. As of June 30, 2026, the company carried $5.4 billion of goodwill and intangible assets, increasing potential impairment sensitivity if growth expectations weaken.
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Indirect-tax exposure
The company recorded a $45.2 million reserve on its June 30, 2026 balance sheet for potential indirect-tax payments and is in discussions with jurisdictions regarding prior-period taxes. Actual assessments could exceed the reserve and reduce cash flows and profitability.
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Cybersecurity and data-privacy exposure
The filing states that the company experienced a 2022 security incident involving employee credentials and customer-data access, and warns that future incidents could result in fines, litigation, customer loss, and material costs despite current security investments.
Management's outlook
No new quantitative forward guidance was provided in the extracted 10-Q text. Prior Q2 outlook was revenue of $1.42-$1.43 billion and EPS of $1.27-$1.32; reported Q2 revenue of $1.499 billion and EPS of $1.47 exceeded both ranges.
Earlier filings 4
10-K · February 24, 2026
Twilio describes a platform strategy that combines communications APIs, customer data (Segment) and AI to drive personalized, omnichannel engagement. FY2025 revenue accelerated to approximately $5.07 billion (sum of…
10-Q · August 8, 2025
Twilio reported quarterly revenue of $1,228.4M, up from $1,082.5M a year ago (+$145.9M, +13.5%), and delivered GAAP diluted EPS of $0.14 compared with $(0.19) a year ago. Gross profit increased to $602.7M but gross…
10-Q · October 31, 2024
Twilio reported Q3 revenue of $1,133,649,000, up $99,979,000 (9.7%) year-over-year, with gross profit of $578,629,000 (gross margin ~51.04%) and a materially narrowed operating loss of $4,894,000 versus $(108,903,000) a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.