Twilio Reprices Up After Strong Q2 and Raised 2026 Outlook

Overview

• On Friday, Twilio reported Q2 revenue of about $1.5 billion and adjusted EPS of $1.47, beating Wall Street estimates.
• The company posted record free cash flow of $352.6 million, a 34% increase, and raised full-year free cash flow and operating income guidance.
• Twilio lifted its 2026 revenue growth target to 18%–18.5% and set a higher organic growth midpoint, signaling accelerating customer spending and better unit economics.
• The stock jumped roughly 16% in premarket trading and the rally pushed implied enterprise value to about $33.7 billion and EV/FCF to near 29.4x, making the shares sensitive to future execution.
• Analysts raised price targets and now frame the question as whether Twilio can sustain the stronger growth and profitability seen in Q2, with watch points including Q3 organic growth and continued customer expansion.