News about Twilio

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%.

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.