Key Figures

• Q2 revenue reached $1.50 billion, exceeding the $1.43 billion consensus estimate by 5%.
• Adjusted EPS of $1.47 surpassed the $1.32 forecast by more than 11%.
• Full-year 2026 revenue growth guidance raised to 18%–18.5%, up from 14%–15%.
• TWLO set a new 52-week high of $238.48 before climbing further to $249.44, up approximately 30% on the day.
• At least four analysts raised their price targets, with the highest now at $285.

Twilio Inc. (TWLO) shares surged roughly 30% on Friday after the company reported second-quarter results that exceeded Wall Street expectations on both revenue and earnings. The print offered the clearest signal yet that the cloud communications platform — which powers messaging, voice, and email infrastructure for businesses through its APIs and customer engagement tools — is reaccelerating after an extended period in which investors questioned its growth trajectory and path to durable profitability.

Second-Quarter Results

Q2 revenue came in at $1.50 billion, representing 22% year-over-year growth and comfortably ahead of the $1.43 billion analyst consensus. Adjusted EPS reached $1.47, beating the $1.32 estimate by over 11%.

CEO Khozema Shipchandler characterized the period as a "powerful new chapter" for Twilio.

Operating cash flow reached $372.4 million, while free cash flow totaled $352.6 million — both company records, according to Shipchandler.

Organic revenue grew 17% year-over-year to $1.499 billion. Including U.S. carrier pass-through fees, the growth rate rises to 22%. This marked the fifth consecutive quarter of accelerating non-GAAP gross profit growth for Twilio, a trend that has attracted increasing attention on Wall Street as evidence that the company's cost discipline and focus on higher-margin offerings are translating into bottom-line improvement.

Raised Guidance

Third-quarter revenue guidance was set at $1.51 billion to $1.52 billion, ahead of analyst expectations. Q3 adjusted EPS guidance was projected at $1.42 to $1.47 per share.

The more notable revision came in the full-year outlook. Twilio raised its 2026 revenue growth forecast to 18%–18.5%, a significant increase from the prior range of 14%–15%. The magnitude of the raise — roughly four percentage points at the midpoint — underscores management's confidence in sustained demand across its communications and Segment customer data platform businesses.

During the quarter, Twilio repurchased $66 million of its own stock. As of June 30, the company had $826 million in remaining repurchase capacity.

Analysts Lift Price Targets

Several analysts revised their price targets upward following the earnings report:

• BTIG (Nick Altmann): Raised target to $285 from $245, maintaining a Buy rating.
• Needham (Joshua Reilly): Lifted target to $280 from $250, maintaining a Buy rating.
• Rosenblatt (Catharine Trebnick): Raised target to $275 from $230, maintaining a Buy rating.
• Keybanc (Jackson Ader): Increased target to $250 from $200, maintaining an Overweight rating.
• TD Cowen and Stifel also raised their targets to $260 and $275, respectively.

The broad-based target increases reflect a Wall Street consensus that Twilio's profitability turnaround is gaining traction faster than anticipated. Going forward, investors will be watching whether the company can maintain its streak of accelerating gross profit growth, execute on AI-driven customer engagement offerings, and convert raised guidance into delivered results.

Technical Overview

From a technical perspective, TWLO was trading well above its key moving averages — 20.4% above its 20-day simple moving average and 58.7% above its 200-day SMA. The Relative Strength Index (RSI) stood at 73.72, placing it in overbought territory.

The stock surpassed its previous 52-week high of $238.48 before extending gains further. TWLO was last trading at $249.44, up 29.11% on the session.