Twilio Q1 2026 earnings: revenue up 20% as AI-driven demand lifts messaging and voice
Twilio's revenue climbed 20% year-over-year to $1.41 billion in Q1 2026, driven by AI-fueled messaging and voice demand, and the company raised its full-year growth outlook.
| Q1 2026 | Reported |
|---|---|
| EPS | $0.57 |
| Revenue | $1.41B |
Figures as reported by the company to the SEC for the quarter ended March 31, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue grew 20% year-over-year to $1.41 billion, with underlying (organic) growth of 16% once currency effects and other one-off items are stripped out — the fastest revenue and gross-profit growth pace the company has posted in more than three years, according to CEO Khozema Shipchandler.
- Profitability kept improving: the trailing-twelve-month gross margin sits near 48.7%, meaning Twilio keeps roughly 49 cents of every revenue dollar after direct costs like messaging and calling fees. Operating margin (4.6%) and net margin (2.0%) are thinner but have been climbing as the company scales, and GAAP operating income jumped 366% versus a year ago.
- Growth was broad-based: voice revenue rose 20% (with self-service voice usage up 45%), and messaging revenue rose 25%, which the company attributed to rising demand tied to AI-powered customer applications. The number of customers using multiple Twilio products climbed 29%, a sign existing customers are buying more services rather than just one.
- Twilio raised its full-year 2026 outlook, now expecting organic revenue growth of 9.5% to 10.5% (up from a prior 8% to 9% range), and guided to full-year non-GAAP operating income and free cash flow each in the $1.08 billion to $1.1 billion range.
- For the current quarter, the company guided to revenue of $1.42 billion to $1.43 billion, implying reported growth of roughly 15.5% to 16.5% year-over-year.
- Quarterly earnings per share growth of about 362% year-over-year reflects how much more profitable the business has become compared with the same quarter last year, though return on equity remains modest at about 1.3%, indicating profits are still small relative to the company’s overall shareholder equity base.
- CEO Khozema Shipchandler described the quarter as a ‘milestone,’ pointing to accelerating demand from AI-driven customer communications use cases as a key factor behind the stronger growth.
Q1 2026 in context
| Metric | Mar 2026 | Mar 2025 | Change |
|---|---|---|---|
| Revenue | $1.4B | $1.2B | +20.0% |
| Net income | $90M | $20M | +350.3% |
| Diluted EPS | $0.57 | $0.12 | +375.0% |
| Gross margin | 48.6% | 49.6% | -1.0 pts |
| Operating margin | 7.7% | 2.0% | +5.7 pts |
| Net margin | 6.4% | 1.7% | +4.7 pts |
Figures for the quarter ended Mar 2026 and the quarter ended Mar 2025, as reported to the SEC.
How the stock took it
Twilio Inc closed at $148.06 on Apr 30, 2026, the last session before the report, and at $189.67 on May 4, 2026, the first session after it — +28.1% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Oct 31, 2025 | $112.86 | $136.10 | +20.6% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call