| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 15 | 38.9x | 17.4x | Bottom tier | |
Growth | 87 | 17.8% | 7.1% | Top tier | |
Quality | 71 | 13.2% | 4.5% | Top tier | |
Safety | 92 | — | 2.6x | Top tier | |
Capital Return | 50 | 0.00% | 0.18% | Around median | |
Momentum | 100 | 130.6% | 1.3% | Top tier | |
Sentiment | 61 | 17 | 3 | Around median |
The floor: what the company is worth if growth stopped today
91% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Twilio Inc. provides cloud communications infrastructure that enables companies to manage customer interactions across Messaging, Voice, WhatsApp, RCS, and email, alongside software products such as Verify, Branded Calling, and Conversation Intelligence. The company generates revenue from communication-channel usage volumes and software add-ons, with its cross-selling strategy encouraging customers to combine multiple channels and products on the Twilio platform. In Q2 fiscal 2026, self-service revenue growth exceeded 30%, independent software vendor revenue growth exceeded 25%, and software add-on revenue increased by more than 25%.
Twilio reported record revenue of $1.50 billion in Q2 fiscal 2026, up 22% year over year on a reported basis and 17% organically after excluding incremental increases in U.S. carrier fees. Gross profit according to EDGAR was approximately $725.9 million, equivalent to a gross margin of about 48.4%, while the company reported non-GAAP gross profit of $736 million and a margin of 49.1%. Non-GAAP operating income reached a record $285 million, while free cash flow reached $353 million.
Net income according to EDGAR was approximately $1.1 billion in Q2 fiscal 2026, but this figure benefited from a one-time non-cash gain of $944 million resulting from the release of a valuation allowance related to deferred tax assets; therefore, the entire increase does not represent a recurring operational improvement. The company recorded GAAP operating income of $85 million after a $33 million impairment of a prepaid asset. In terms of the growth mix, Messaging revenue increased by 28%, Voice by more than 20%, and Verify by more than 30%, while the dollar-based net expansion rate reached 116%, including a contribution of approximately five points from carrier fees.
The analyst consensus on TWLO is “Buy,” with an average price target of $257.38 and a wide range between $192 and $330; the average is near the top of the 52-week range of $258.353, compared with a low of $98.44. No displayed price-to-earnings ratio is available, and Q2 fiscal 2026 net income included a one-time non-cash tax gain of $944 million, so organic growth and free cash flow metrics appear more informative than accounting earnings per share alone. Target increases following the August 2026 results balance faster organic growth and higher cash flow guidance on one hand against carrier-fee pressure and the possibility of slower Q3 fiscal 2026 growth on the other.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Q2 fiscal 2026 growth came from several channels, as reported revenue increased 22% to $1.50 billion and grew organically by 17%. Messaging revenue increased by 28%, Voice by more than 20%, and software add-ons by more than 25%, while Verify growth exceeded 30%. Self-service also grew by more than 30% and independent software vendors by more than 25%, showing that the acceleration did not depend on a single product. Based on first-half performance, the company raised its organic growth guidance for fiscal 2026 to 13%–13.5%.
Twilio provides the voice infrastructure, communication channels, and software add-ons that AI companies use to launch real customer conversations. In Q2 fiscal 2026, Voice growth in the self-service channel exceeded 50%, while Branded Calling and Conversation Intelligence posted triple-digit growth. Management cited a customer that began with low six-figure quarterly spending and then reached an annual revenue run rate of $6 million and 65% growth. It also explained that AI-related demand was more evident in Voice through August 6, 2026, while its impact on Messaging remained at an earlier stage.
Automated analysis for informational purposes only — not investment advice.
The conversations platform includes Conversation Memory, Conversation Orchestrator, Conversation Intelligence, Conversation Relay, and Agent Connect, and became generally available in 2026. The Car Finance 247 pilot resulted in a seven-figure deal, while the Carla assistant handled approximately 300 thousand conversations and accelerated the conversion to qualified leads by 1.6 times. The redesigned Twilio Console was launched in May 2026 and delivered an improvement of more than 90% in conversion compared with the previous interface. However, management said that the new interface's contribution to multi-product revenue during Q2 fiscal 2026 was very limited, leaving its broader financial impact unproven so far.
Non-GAAP gross profit reached $736 million in Q2 fiscal 2026, up 18%, but the margin declined to 49.1%. This was primarily due to $71 million in incremental increases in U.S. carrier fees, which reduced the margin by 160 basis points year over year. Without those fees, the margin would have increased by 60 basis points year over year and 30 basis points sequentially. Twilio expects pass-through fees to reduce non-GAAP gross margin for fiscal 2026 by approximately 210 basis points compared with fiscal 2025.
EDGAR data showed net income of approximately $1.1 billion and earnings per share of $6.68 in Q2 fiscal 2026. However, net income benefited from a one-time non-cash gain of $944 million resulting from the release of a valuation allowance on deferred tax assets. The company also recorded GAAP operating income of $85 million after a $33 million impairment of a prepaid asset. Therefore, metrics such as non-GAAP operating income of $285 million and free cash flow of $353 million provide a clearer view of operating performance for that quarter.
Twilio is targeting Q3 fiscal 2026 revenue between $1.505 billion and $1.515 billion, equivalent to reported growth between 16% and 16.5% and organic growth between 11% and 12%. It expects non-GAAP operating income between $285 million and $295 million for that quarter. For fiscal 2026, it is targeting organic growth between 13% and 13.5%, with non-GAAP operating income and free cash flow each between $1.135 billion and $1.155 billion. The dollar-based net expansion rate, which reached 116% in Q2 fiscal 2026 and included approximately five points from carrier fees, remains an important indicator of spending expansion among existing customers.
