TWLO · Twilio Inc.

Twilio's Q1 2026 results marked a significant milestone with the highest revenue and gross profit growth rates in over three years, driven by a multi-year evolution enhancing innovation velocity, GTM efficiency, and financial rigor, positioning the company as foundational AI infrastructure. Revenue reached $1.41 billion, up 20% reported and 16% organic year-over-year, reflecting strong customer engagement via its Customer Engagement Platform. Profitability surged with GAAP income from operations at $107.7 million, a 366% increase, and non-GAAP at $278.9 million, up 31%, supported by GAAP gross margins of 49% and non-GAAP at 50%. CEO Khozema Shipchandler highlighted the transformation's impact on performance. Guidance reflects confidence, with Q2 revenue projected at $1.420-$1.430 billion (15.5-16.5% YoY reported growth) and non-GAAP operating income of $250-$260 million. Full-year 2026 outlook raised to 14-15% revenue growth (9.5-10.5% organic), non-GAAP operating income of $1.08-$1.10 billion, and free cash flow of $1.08-$1.10 billion. Share repurchases continued aggressively, with $253.4 million bought in Q1 under the $2 billion program authorized in January 2025, $892 million remaining. Key metrics like 114% Dollar-Based Net Expansion Rate (vs 107% YoY) and 5,558 employees underscore operational strength amid AI-era positioning.