TWLO
Twilio Inc.
TWLO's fundamentals are strong and it looks cheap: trading at 27x earnings, less than half its usual 326x. Analysts expect strong earnings growth.
TWLO Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Strong | |
| Strong |
TWLO's revenue, profitability, cash flow and balance sheet are all currently healthy.
TWLO PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 27x | $212 | — |
| Forward | 32x | $212 | — |
| Cheap | 36x | $287 | +35% |
| Fair | 326x | $2,598 | +1124% |
| Expensive | 920x | $7,334 | +3356% |
Historical ranges are pointers, not guarantees.
TWLO's PE is in its cheap range at 27x. On analysts' estimates for next year's earnings, today's price would be 32x.
TWLO Forward outlook
| Metric | Outlook |
|---|---|
| Strongly deteriorating | |
| Strong growth | |
| Growth | |
| Improving | |
| Moderate | |
| Moderate |
Analysts expect earnings and revenue growth for TWLO, with profitability improving.
TWLO Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $6.60 | -17% |
| Q3 2026 | $7.97 | +1944% |
| Q2 2026 | $7.20 | +7100% |
| Q1 2026 | $0.66 | +$0.89 |
| Q4 2025 | $0.21 | +$0.87 |
| Q3 2025 | $0.39 | +$2.96 |
| Q2 2025 | $0.10 | +$3.39 |
| Q1 2025 | -$0.23 | +$3.78 |
| Q4 2024 | -$0.66 | +$4.88 |
TWLO's earnings per share have climbed steadily: $7.97 over the past year, more than ten times what it earned the year before, and higher year over year for 13 quarters in a row.
TWLO Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.6B | +20% |
| Q2 2026 | $1.5B | +22% |
| Q1 2026 | $1.4B | +20% |
| Q4 2025 | $1.4B | +14% |
| Q3 2025 | $1.3B | +15% |
| Q2 2025 | $1.2B | +13% |
| Q1 2025 | $1.2B | +12% |
| Q4 2024 | $1.2B | +11% |
TWLO's revenue has grown year over year every quarter since late 2020: $1.6B last quarter, up 20% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 9.5% | +6.4 points |
| Q2 2026 | 5.6% | +2.6 points |
| Q1 2026 | 7.7% | +5.7 points |
| Q4 2025 | 4.2% | +3 points |
| Q3 2025 | 3.1% | +3.6 points |
| Q2 2025 | 3% | +4.8 points |
| Q1 2025 | 2% | +6.1 points |
| Q4 2024 | 1.1% | +35 points |
TWLO's operating margin was 9.5% last quarter, up 6.4 points from the same quarter a year ago, near the top of its range since 2019.
TWLO Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $389.2M | +48% |
| Q2 2026 | $372.4M | +34% |
| Q1 2026 | $153.2M | -20% |
| Q4 2025 | $271.6M | +150% |
| Q3 2025 | $263.6M | +29% |
| Q2 2025 | $277.1M | +30% |
| Q1 2025 | $191M | +0.5% |
| Q4 2024 | $108.4M | -51% |
TWLO generated $1.2B in free cash flow over the past year, up 41% from the year before.
TWLO Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +1.3% | +2M shares |
| 1 year | +1.6% | +2.5M shares |
| 3 years | -11% | -20M shares |
| 5 years | -8.7% | -15.5M shares |
| Available history | +24% | +31.7M shares |
TWLO has 162M diluted shares, up 1.6% from a year ago, despite $647M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $125.2M |
| Q2 2026 | $70M |
| Q1 2026 | $253M |
| Q4 2025 | $198.5M |
| Q3 2025 | $347.2M |
| Q2 2025 | $197M |
| Q1 2025 | $126.3M |
| Q4 2024 | $420.1M |
TWLO spent $647M buying back its own shares over the past year, down 41% from the year before.
TWLO Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.1x | Net Cash |
| Q2 2026 | 0.4x | Very low |
| Q1 2026 | 1.1x | Healthy |
| Q4 2025 | 0.9x | Very low |
| Q3 2025 | 0.8x | Very low |
| Q2 2025 | 0.1x | Very low |
| Q1 2025 | 2.4x | Moderate |
| Q4 2024 | 3.7x | Elevated |
TWLO has more cash than debt.
TWLO Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 48.6 | Neutral |
| Stochastic | 20.6 | Neutral |
TWLO's weekly RSI is 49 (neutral) and its Stochastic is 21 (neutral).
TWLO PE vs Communication Services Sector
| Metric | TWLO | Sector median | Relative |
|---|---|---|---|
| PE | 27x | 16x | 61% above |
| PE % | 3 | 26 | 23 pts below |
TWLO is trading at 27x earnings, a 61% premium to the Communication Services sector's median of 16x.
TWLO Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $248.2 | 14% below |
| 20 week MA | $232.6 | 8.8% below |
| 50 week MA | $181.9 | 17% above |
| 100 week MA | $147.4 | 44% above |
| 200 week MA | $106.1 | 100% above |
TWLO has pulled back, but its long-term trend is still up: it's below its 8- and 20-week averages, but 100% above its 200-week average.
TWLO Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $100.4 | $362.9 | +261% |
| 2021 | $362.9 | $267.2 | -26% |
| 2022 | $267.2 | $44.8 | -83% |
| 2023 | $44.8 | $75.9 | +70% |
| 2024 | $75.9 | $109.3 | +44% |
| 2025 | $109.3 | $140.5 | +29% |
| 2026 YTD | $140.5 | $212.2 | +51% |
TWLO's yearly returns have swung widely, from +261% in 2020 to −83% in 2022. It's up 51% so far in 2026.