Revenue Acceleration
Twilio's Q1 FY2026 revenue reached $1.41B, up 20.0% YoY from $1.17B, indicating strong demand acceleration for its communications platform and customer engagement solutions.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Twilio delivered strong Q1 FY2026 results with revenue surging 20.0% YoY to $1.41B and operating income jumping 366.5% to $107.7M, reflecting significant operating leverage improvements even as gross margin edged slightly lower.
Revenue
$1.41B
+20.00% YoY
EPS (Diluted)
$0.57
+375.00% YoY
Gross Margin
48.6%
-1.0 pts YoY
Operating Income
$107.67M
+366.45% YoY
Source: SEC XBRL
Twilio (TWLO) reported Q1 FY2026 revenue of $1.41B, up 20.0% year over year. Operating margin was 7.7%, up 5.7 points from 2.0% a year earlier. Operating cash flow was $153.21M, down 19.8% year over year. TWLO's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.47 | 1.34 | Beat +9.3% |
| Mar 2026This filing | 1.50 | 1.30 | Beat +15.5% |
| Dec 2025 | 1.33 | 1.26 | Beat +5.5% |
| Sep 2025 | 1.25 | 1.11 | Beat +13.1% |
Adjusted (non-GAAP) EPS of $1.50 versus the $1.30 analyst consensus — a +15.5% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.57.
Compiled by AI from this SEC filing
Twilio's Q1 FY2026 revenue reached $1.41B, up 20.0% YoY from $1.17B, indicating strong demand acceleration for its communications platform and customer engagement solutions.
Source: 10-Q Income Statement
Operating income surged 366.5% YoY to $107.7M, pushing operating margin from 1.97% to 7.65%, demonstrating meaningful progress in cost discipline and scaling efficiency relative to revenue growth.
Source: 10-Q Income Statement
R&D expense grew only 3.1% YoY to $262.2M despite 20% revenue growth, suggesting Twilio is achieving greater efficiency in its product development investments and prioritizing profitability.
Source: 10-Q Income Statement
Twilio doubled its share buyback activity to $253.0M in Q1 FY2026 vs. $126.3M in the prior year period, reflecting management's confidence in the business and commitment to returning capital to shareholders.
Source: 10-Q Cash Flow Statement
Gross margin declined modestly by approximately 1 percentage point YoY to 48.6% from 49.6%, as cost of revenue grew 22.3%—slightly faster than revenue growth of 20.0%—suggesting some mix shift or infrastructure cost pressures.
Source: 10-Q Income Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Cost of revenue grew 22.3% YoY, outpacing revenue growth of 20.0%, causing gross margin to compress from 49.6% to 48.6%. If this trend continues, it could pressure profitability despite strong top-line growth.
Source: 10-Q Income Statement
Operating cash flow fell 19.8% YoY to $153.2M despite significantly higher net income of $90.1M, which may indicate working capital headwinds or timing differences in cash collections that warrant monitoring.
Source: 10-Q Cash Flow Statement
Financing cash outflows doubled YoY to $252.6M, almost entirely driven by share repurchases of $253.0M. While buybacks signal confidence, this aggressive pace reduces cash reserves and financial flexibility for potential acquisitions or investments.
Source: 10-Q Cash Flow Statement
Total assets declined 2.4% YoY to $9.58B while stockholders' equity fell 2.8% to $7.78B, likely reflecting amortization of intangible assets from prior acquisitions and ongoing buybacks reducing the equity base.
Source: 10-Q Balance Sheet
Twilio operates in a highly competitive cloud communications market facing pressure from large technology incumbents and specialized competitors. With long-term debt of $992.7M and a business model dependent on developer adoption and enterprise retention, any loss of market share could materially impact revenue growth.
Source: 10-Q Balance Sheet & Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.41 $B | 1.17 $B | +20.00% |
Cost of Revenue $M | 722.66 $M | 590.90 $M | +22.30% |
Gross Profit $M | 684.24 $M | 581.57 $M | +17.66% |
Operating Income $M | 107.67 $M | 23.08 $M | +366.45% |
Net Income $M | 90.14 $M | 20.02 $M | +350.31% |
EPS (Basic) $ | 0.59 $ | 0.13 $ | +353.85% |
EPS (Diluted) $ | 0.57 $ | 0.12 $ | +375.00% |
R&D Expense $M | 262.17 $M | 254.30 $M | +3.10% |
Answers draw on this SEC filing and the data on this page
Twilio's Q2 FY2026 results featured a $944.1 million tax benefit that propelled net income to $1.07 billion, while 22% revenue growth and a 116% dollar-based net expansion rate underlined strong operational momentum.
Twilio delivered its first full-year GAAP operating profit in FY2025, with revenue growing 13.7% to $5.07B and operating cash flow surging 40.1% to $1.00B, marking a significant inflection toward profitability.