Twilio Q2 2026 Earnings: Growth Accelerates, Cash Flow Rises, Outlook Raised
Twilio's revenue growth accelerated and cash generation strengthened in Q2 2026, and the company raised its full-year outlook, though most of its headline GAAP profit jump stemmed from a one-time tax accounting benefit.
| Q2 2026 | Reported |
|---|---|
| EPS | $6.68 |
| Revenue | $1.50B |
Figures as reported by the company to the SEC for the quarter ended June 30, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue reached roughly $1.5 billion, up 22% from a year earlier on a reported basis, with underlying (organic) growth of about 17% — an acceleration from recent quarters.
- Twilio reported GAAP earnings per share of $6.68, far above the $0.14 booked a year earlier, but most of that jump — about $5.91 per share — came from a one-time, non-cash accounting benefit after the company released a tax valuation allowance, not from stronger day-to-day business performance.
- Stripping out one-time items, adjusted profit per share was $1.47, up from $1.19 a year ago, indicating the core business also became more profitable, separate from the tax-related boost.
- Free cash flow — the cash left over after running the business and funding equipment or software investments — was about $353 million, up 34% year over year, pointing to stronger cash generation.
- On a trailing-twelve-month basis, gross margin sat near 48.7% and net profit margin was under 2%, reflecting how much Twilio still spends on costs like stock-based compensation relative to revenue under standard accounting rules, even as its adjusted operating margin (which excludes those non-cash costs) expanded to roughly 19%.
- Management raised its full-year 2026 outlook for revenue, operating income, and free cash flow, pointing to broad-based demand across its messaging and voice products as well as newer AI-driven offerings, from both large enterprise customers and AI-focused companies.
- Twilio’s stock jumped sharply in after-hours trading following the release, a reaction tied to the accelerating growth and the raised full-year guidance.
Q2 2026 in context
| Metric | Jun 2026 | Jun 2025 | Change |
|---|---|---|---|
| Revenue | $1.5B | $1.2B | +22.0% |
| Net income | $1.1B | $22M | +4659.4% |
| Diluted EPS | $6.68 | $0.14 | +4671.4% |
| Gross margin | 48.4% | 49.1% | -0.6 pts |
| Operating margin | 5.6% | 3.0% | +2.6 pts |
| Net margin | 71.2% | 1.8% | +69.4 pts |
Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC.
How the stock took it
Twilio Inc closed at $193.20 on Aug 6, 2026, the last session before the report, and at $250.06 on Aug 10, 2026, the first session after it — +29.4% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| May 1, 2026 | $148.06 | $189.67 | +28.1% |
| 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.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 48.7% | Trailing 12 months |
| Operating margin | 4.6% | Trailing 12 months |
| Net profit margin | 2.0% | Trailing 12 months |
| Pretax margin | 2.5% | Trailing 12 months |
| EPS | $0.64 | Trailing 12 months |
| Revenue growth (YoY) | 15.7% | Trailing 12 months |
| EPS growth (YoY) | 361.9% | Latest quarter |
| Return on equity | 1.3% | Trailing 12 months |
Sources: company report · Yahoo Finance · Investing.com · earnings call