Twilio Q3 FY2026: revenue up 20.0%, EPS beats, but Q4 organic growth slows
Twilio beat on both lines: revenue of $1.56 billion grew 20.0% and non-GAAP EPS of $1.65 came in above the $1.496 consensus. The company also raised full-year operating income and free cash flow guidance. The catch is the fourth-quarter guide, which implies organic growth of just 11.0% to 12.0%. Read the scorecard as a profitable-growth story with a decelerating core.
1 · Expected vs. Actual
Free preview belowGAAP net income was $161.2 million, or $1.00 per diluted share, against $0.23 a year ago. Non-GAAP EPS of $1.65 beat the $1.496 consensus, and the bridge to GAAP is mostly $153.9 million of stock-based compensation, still 9.9% of revenue. Note that a $22.0 million tax benefit, not a tax charge, lifted GAAP net income this quarter.
Revenue of $1.56 billion rose 20.0% from $1.30 billion a year ago, but only 16.0% was organic after stripping out $53.1 million of carrier A2P fees and $1.8 million of acquisition revenue. Gross margin was 48.8%, essentially flat year over year. Dollar-based net expansion rose to 114% from 109%, which tells you existing customers are spending more.
Q4 revenue is guided to $1.595–$1.605 billion, a $1.60 billion midpoint that sits below the $1.626 billion consensus. Reported growth of 17.0% to 17.5% looks strong, but organic growth drops to 11.0% to 12.0%, a real step down from 16.0%. The full year was raised across the board, with non-GAAP operating income and free cash flow both moving to $1.19–$1.20 billion.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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