Twilio Reports Record Q3 2026 Revenue and Free Cash Flow with Raised Full-Year Guidance
Twilio (TWLO) delivered a strong third quarter for 2026, reporting revenue of $1.56 billion, a 20% year-over-year increase. The company achieved record free cash flow of $370 million and significant growth in non-GAAP income from operations, which rose 39% to $326 million. Growth was driven by robust messaging volumes and high momentum in higher-margin software products, including triple-digit growth in specific AI-driven tools like Branded Calling. Following these results, management raised its full-year 2026 organic revenue guidance to 15% and increased its non-GAAP operating income outlook. Looking further ahead, Twilio expanded its 2027 long-term framework, projecting at least 10% organic growth and over $1.35 billion in non-GAAP operating income. Despite headwinds from U.S. carrier pass-through fees impacting gross margins, the company's shift toward software add-ons and self-serve channels remains a primary driver of profitability.
Tickers: $TWLO
Topics: Financial Guidance Free Cash Flow Revenue Growth Stock Buybacks