Twilio Inc. (TWLO) shares skyrocketed nearly 30% on Friday following the release of its second-quarter 2026 financial results, which comprehensively beat Wall Street expectations and prompted a sharp upward revision to its full-year outlook. The stock touched a 52-week high of $238.48 before extending gains to trade around $249.44, significantly above its key moving averages.
Earnings beat: Adjusted earnings per share came in at $1.47, handily exceeding the analyst consensus of $1.32 by more than 11%. Revenue surged 22% year-over-year to $1.50 billion, topping the $1.43 billion estimate, while organic revenue grew 17%. Free cash flow hit a record $352.6 million, up from $263.5 million in the year-ago quarter. CEO Khozema Shipchandler called it a “powerful new chapter,” citing accelerating organic growth and record profitability.
Raised guidance: For the third quarter, Twilio guided for revenue between $1.505 billion and $1.515 billion, with a midpoint of $1.510 billion, above the $1.464 billion consensus. Adjusted EPS guidance of $1.42-$1.47 also topped estimates. The full-year 2026 revenue growth forecast was hiked to 18%-18.5% from the prior 14%-15%, and adjusted operating income was raised to $1.135 billion-$1.155 billion.
Analyst upgrades: Several Wall Street firms raised their price targets, with BTIG lifting to $285, Needham to $280, Rosenblatt to $275, Keybanc to $250, and TD Cowen to $260. Analysts pointed to Twilio’s unmatched competitive position in CPaaS, market share gains, and conservative guidance around AI-driven opportunities. The company also bought back $66 million of its own stock, with $826 million remaining under its repurchase authorization.
