Twilio Inc - Ordinary Shares Class A
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+ FollowMarket Cap$31.49B
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Earnings Call Q3 2026
October 29, 2026 - AI Summary
Q3 delivered strong growth + peak profitability/cash flow (all “record” metrics)
- Revenue: $1.56B, +20% YoY reported / +16% YoY organic (ex-U.S. carrier pass-through).
- Non-GAAP gross profit: $768M, +18% YoY; non-GAAP gross margin 49.2% (down 90 bps YoY mainly due to incremental U.S. carrier pass-through fees).
- Non-GAAP operating income (income from operations): $326M, +39% YoY, fastest growth in 2+ years; non-GAAP operating margin 21% (up 290 bps YoY).
- Free cash flow: $370M (record); completed $127M share repurchases in Q3 with ~$700M remaining on authorization.
- Good: profitability and cash generation accelerated despite margin noise from pass-through fees.
AI “super cycle” narrative is early but positioning is strong (right to win via infrastructure + identity)
- Management claims Twilio is in the early stages of an AI-driven adoption cycle; penetration is “extremely low” today (e.g., voice/consumer AI interactions cited as tiny share of available interactions).
- Voice + “consumer AI” are gaining traction; early customer deployments are moving from proof-of-concept to production.
- Twilio’s differentiated pitch: trusted, reliable connectivity + context layer + governance/identity + observability (neutral infrastructure layer vs application-level vendors).
- Opportunity: identity/addressability and “conversation layer” products can become a recurring attach layer as agentic experiences scale.
- Surprising/positive: company frames fragmentation across agent vendors as helpful because Twilio can serve as the neutral adjudication layer for identity.
Product/segment performance: Messaging decelerated but core momentum remained broad-based
- Self-serve: 30%+ revenue growth; ISV: 20%+ growth.
- Messaging: +24% organic with RCS + WhatsApp strength; incremental carrier fees ~7 points to messaging growth.
- Messaging organic decelerated modestly (management attributed to tougher comparisons for ISVs due to acceleration in the third quarter of 2025 rather than demand weakening).
- Voice: 20%+ growth, driven by balanced volume growth + faster software add-on attach (Branded Calling, Conversation Intelligence, Conversation Relay, Verify).
- Good: voice/software add-ons strong enough to offset messaging softness; multiproduct customers expanding usage faster than average.
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$173.04
18.9% downside
Current Fair Value
18.9% downsideOvervalued by 18.9% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $31.49 Billion |
|---|---|
| Enterprise Value | $30.89 Billion |
| Earnings per Share | $0.22 |
| Beta | 1.36 |
| Outstanding Shares | 154,378,183 |
Return
| Return on Equity | 14.18% |
|---|---|
| Return on Assets | 11.74% |
| Return on Invested Capital | 4.07% |
Valuation & Multiples
| P/E Ratio | 24.64 |
|---|---|
| PEG | 7.41 |
| Price to Sales | 5.77 |
| Price to Book Ratio | 3.68 |
| Enterprise Value to Revenue | 5.3 |
| Enterprise Value to EBIT | 75.78 |
| Enterprise Value to Net Income | 24 |
| Total Debt to Enterprise | 0.01 |
| Debt to Equity | 0.03 |
Revenue Sources
No data
Last Earnings Call
Report Date
October 29, 2026
EPS Estimate
$1.47
Consensus analyst estimateRevenue Estimate
$1.52 B
Consensus analyst estimateNext Earnings Call
Expected Date
February 11, 2027
EPS Estimate
$1.55
Consensus analyst estimateRevenue Estimate
$1.60 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 1.38, the ratio is above 1, so institutions hold more puts than calls. That is a more cautious stance.
| Put/Call Ratio | 1.3835▲ 65.54% |
|---|---|
| Total Calls | 35,345▼ 98.91% |
| Total Puts | 48,900▼ 97.92% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 3.35%▼ 88.18% |
|---|---|
| Total Invested | $1.48B▼ 94.84% |
| Investors Holding | 368▼ 664.00% |
About Twilio Inc
5,587 employees
CEO: Jeff Lawson
Twilio Inc., including its subsidiaries, delivers a robust cloud communications platform. This platform empowers software developers worldwide, including those in the United States, to effortlessly build, scale, and manage customer engag...