10-Q · August 7, 2026
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…
Earnings analysis · 10-Q
TWLO earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Twilio delivered strong reported revenue growth, with Q3 revenue of $1.559 billion versus $1.50 billion in Q2 2026 and $1.30 billion in Q3 2025. Liquidity remained substantial at $2.9 billion of cash, cash equivalents,…
Read full summary
Twilio delivered strong reported revenue growth, with Q3 revenue of $1.559 billion versus $1.50 billion in Q2 2026 and $1.30 billion in Q3 2025. Liquidity remained substantial at $2.9 billion of cash, cash equivalents, and marketable securities, while share repurchases continued under the $2.0 billion authorization. Offsetting considerations include $1.0 billion of debt, significant goodwill and intangible assets of $5.4 billion, and uncertainty around a $45.9 million indirect-tax reserve; the supplied 10-Q excerpt does not provide new quantitative guidance or complete income-statement and cash-flow disclosures.
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
- $1.65
What stood out
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Revenue growth remained strong
Reported Q3 revenue was $1.559 billion, up from $1.50 billion in Q2 2026 and $1.30 billion in Q3 2025, representing approximately 3.9% sequential growth and 19.9% year-over-year growth. Reported EPS was $1.65 versus $6.68 in Q2, with the Q2 figure elevated by nonrecurring items.
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Strong liquidity position
The company held $1.1 billion of cash and cash equivalents and $1.8 billion of marketable securities as of September 30, 2026, providing approximately $2.9 billion of liquid investments for working capital and other corporate needs.
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International contribution remained substantial
Twilio's international customer accounts represented 36% of revenue for the nine months ended September 30, 2026, compared with 36% in 2025 and 35% in 2024, indicating a substantial and stable international exposure.
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Share repurchases continued
The company repurchased 537 thousand shares during Q3 2026, including 263 thousand shares in August and 274 thousand in September. Approximately $699 million remained available under the $2.0 billion repurchase authorization as of September 30, 2026.
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No reported control deficiencies
Management stated that disclosure controls and procedures were effective as of September 30, 2026, and reported no changes during the quarter that materially affected, or were reasonably likely to materially affect, internal control over financial reporting.
What to watch
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Debt limits financial flexibility
Twilio had $1.0 billion of indebtedness outstanding as of September 30, 2026. The company also has fixed-rate notes carrying coupons of 3.625% due 2029 and 3.875% due 2031, which may constrain financial flexibility and require cash dedicated to debt service.
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Large impairment exposure
The company carried a net $5.4 billion of goodwill and intangible assets and $225.2 million related to an equity-method investment as of September 30, 2026. Adverse market conditions or changes in valuation assumptions could result in material impairment charges.
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Indirect-tax exposure remains uncertain
Twilio recorded a $45.9 million reserve for potential sales and other indirect tax payments as of September 30, 2026, while noting that actual exposure could differ materially if jurisdictions disagree with its assumptions regarding taxability, nexus, or revenue sourcing.
Management's outlook
The supplied 10-Q excerpt does not include a quantitative revenue or EPS outlook. Prior Q4 2026 guidance was provided in the October 29, 2026 earnings release rather than this filing.
Earlier filings 4
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…
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.