Twilio (TWLO) beat Zacks consensus estimates on both earnings and revenue for third-quarter 2026, with non-GAAP EPS of $1.65, 13% above consensus and up 32% year over year. Revenue rose 20% to $1.56 billion, driven by product strength and demand from AI-native customers, while messaging revenue grew 24%, including about seven percentage points from incremental U.S. carrier fees. Non-GAAP gross margin fell 90 basis points to 49.2% due to $53 million of incremental U.S. carrier pass-through fees, while free cash flow rose about 49% to $369.6 million. Twilio raised its 2026 reported revenue growth outlook to 20% from 18–18.5%, and expects fourth-quarter revenue of $1.595 billion to $1.605 billion. Management expects organic revenue growth of at least 10% in 2027, above its earlier long-term framework of 7–8%.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Twilioearningsartificial intelligencetelecommunications
Open a keyword to see other news on the same topic.
Related news
- Twilio Stock Sinks as Slowing Growth Throws ‘Cold Water’ on Benefits From AI
Twilio's third-quarter earnings beat expectations but have not won over Wall Street. The article says slowing growth is dampening the expected benefits from AI for the company.
- Learn Why The Bull Case For Verizon Communications (VZ) Could Change Following Raised Outlook
Verizon reported Q3 2026 revenue of US$34.313b and net income of US$5.198b, and raised its full-year outlook. The company expanded AI-focused connectivity deals with Amazon and Alphabet and committed US$5b over five years to a Small Business Supplier Accelerator for US suppliers. The article says stronger subscriber trends and enterprise AI Connect contracts show Verizon pairing network scale with more durable customer relationships. An analyst narrative points to forecast revenue of US$147.7b and earnings of US$23.0b by 2029, based on assumed 2.1% annual revenue growth. Key risks include intense competition, heavy capital spending and new pressure from satellite players.
- SpaceX's Q3 revenue beats expectations: Earnings breakdown
SpaceX (SPCX) reported third-quarter results after Tuesday's close, with revenue of $14.58 billion versus analysts' estimates of $12.87 billion and net income of $4.4 billion versus about $1.9 billion expected. Connectivity revenue reached $5.25 billion against $4.9 billion expected, while the presenter cited AI revenue of $7.56 billion as the largest revenue component. Total costs rose to $11.8 billion, above the $11.2 billion estimate, but total capex of $19.59 billion came in slightly below the $19.68 billion forecast, and EBITDA of $8.81 billion beat the $6.59 billion estimate. Shares were up about 1% in after-hours trading, and the CFO said the company delivered another strong quarter while focusing on capital efficiency and a robust investment-grade balance sheet.
- Twilio Stock Plummets to Become the S&P 500’s Top Loser Today
- Telecom Stocks: Can AI, Robotics Break The SpaceX Standoff?
Telecom stocks have been under pressure from SpaceX. The article asks whether Elon Musk could use 'physical AI' to reach a wireless network deal.
- F5 (FFIV) Stock Could Be 14% Overvalued Despite Fresh AI Infrastructure News
A discounted cash flow (DCF) model indicates F5's estimated intrinsic value is slightly below its market price, although free cash flow over the past 12 months reached about 994 million USD. The stock trades at 459.36 USD with a P/E of 35.8x, after a 203.0% return over the past 3 years. The collaboration with Telenor to deploy an AI services platform on sovereign infrastructure powered by NVIDIA could support expectations of sustained cash flow if managing AI traffic becomes a recurring revenue source rather than one-off projects. The model assumes cash flow continues to grow at a moderate pace over the next decade.
Related markets
Latest news
- Why Merck Stock Flew Higher on Friday
Merck (MRK) shares climbed more than 2% on Friday, extending the positive reaction to its third-quarter results posted Thursday, while the S&P 500 fell a relatively steep 1.8%. Sales rose 5% to over $18 billion, driven by Keytruda, and non-GAAP net income fell 4% to nearly $6.2 billion, with both figures and its full-year 2026 guidance beating average analyst estimates. Two of the four big banks raised their price targets: Bank of America Securities to $165 from $163 and J.P. Morgan to $175 from $165, and both maintained their buy ratings. The author notes that Keytruda is approaching its patent cliff, but the pipeline offers room for another blockbuster, and the stock currently yields 2.3%.
- Stocktwits Zero To Sixty: Rivian Raises Delivery Guidance On R2 Demand, Tesla Expands Robotaxi Fleet, And Ford Advances Low-Cost EV Plans
Rivian reported third-quarter revenue of $2.16 billion, up 38% year over year and above consensus near $1.99 billion, while its adjusted loss narrowed to $0.48 per share. The company raised its 2026 delivery outlook to 67,000–70,000 vehicles on strong demand for the R2 SUV and lowered its capital expenditure outlook to $1.4–$1.5 billion. Tesla expanded its robotaxi fleet in Texas to 1,051 authorized vehicles, with 544 Cybercabs now outnumbering 507 Model Ys. Ford said its sub-$30,000 Fathom midsize electric pickup remains on track for a late-2027 launch, while GM is preparing its Lansing plant for future hybrid versions of the Chevrolet Traverse, Buick Enclave and GMC Acadia. Over the week, RIVN rose 3%, TSLA 7%, GM 15% and F about 6%.
- S&P 500, Nasdaq End Third Straight Week Lower As Investors Move Away From Tech, AI — AMZN, INTC, LLY, RBLX In Focus
The S&P 500 fell 2%, the Nasdaq 100 dropped 3.5% and the Dow eased 1.1% on Friday as investors pulled out of tech and AI after third-quarter results missed expectations and heavy AI capex plans weighed on cash flows; the Nasdaq 100 was down about 6.5% for the month. Intel (INTC) plunged the most in over forty years after weak quarterly results and a soft outlook, while Roblox (RBLX) fell about 20% after weaker user engagement and a disappointing fourth-quarter bookings outlook. Semiconductor ETFs, including SMH, dropped between 6.5% and 8%, while Amazon (AMZN) arranged up to $80 billion in supplier financing and Eli Lilly (LLY) and AbbVie (ABBV) hit record highs after raising their 2026 outlooks. Bank of America guided investors toward mega-cap tech corporate bonds over equities and said a potential Tesla–SpaceX merger could face its biggest regulatory challenge in China. Investor attention now turns to the mid-term elections due next week.
- Investors Have Poured a Record $2.24 Trillion Into ETFs This Year. Three Firms Collected Nearly Half of It
Investors put a record $2.24 trillion into ETFs worldwide through September 2026, and iShares, Vanguard and State Street SPDR together took $1.11 trillion, or 49.6% of global inflows. ETFs drew $276.06 billion in net inflows in September, the 88th straight month of inflows, but global ETF assets slipped to $23.91 trillion from a record $24.03 trillion at the end of August as equity markets weakened. The three firms managed $13.93 trillion at the end of September, or 58.3% of global ETF assets, with Vanguard leading year-to-date inflows at $440.69 billion through August. Active ETFs took in $733.95 billion year to date through September, well above $446.75 billion in the same period of 2025. Core S&P 500 funds still drew the most money, with SPY gathering $10.70 billion in September, the most of any ETF globally that month.
- Review & Preview: Ending on a Down Note
Broader markets sold off ahead of Halloween, with tech stocks having a particularly brutal session that capped a poor month.
- Amazon Just Lost $42 Billion in Free Cash Flow. Is It a Red Flag for Investors?
Amazon posted strong growth in the quarter, with revenue up 17% to $201.9 billion after adjusting for foreign exchange and the Prime Day shift, and operating income up 61% to $28.1 billion. Yet the stock fell 1.4% in the regular session and tumbled about 7% after hours, as investors are skeptical of its massive AI-related capital expenditure, planned at $220 billion this year. In the third quarter alone, Amazon reported a free cash flow loss of $33.4 billion while spending $77.3 billion on property and equipment, and it has burned $42 billion in free cash flow over the last four quarters. The article says this equals 5.4% of trailing revenue, comparable to past cycle peaks such as 4.8% in 2022. Amazon forecasts 40% AWS growth over the next two years, and the author argues the spending could pay off through AWS.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.