Abstract

Twilio will release its quarterly results on February 12, 2026 Post Market, with investors watching revenue, margins, and adjusted EPS as consensus anticipates continued improvement and management’s strategic focus on profitable growth.

Market Forecast

Consensus projections for the current quarter point to revenue of USD 1.32 billion, an adjusted EPS of USD 1.24, and EBIT of USD 237.01 million, implying a year-over-year revenue growth of 11.53%, adjusted EPS growth of 19.35%, and EBIT growth of 19.73%. While gross profit margin and net profit margin are not explicitly guided, the last quarter’s profitability trajectory supports expectations for stable-to-improving margin performance on a year-over-year basis. Twilio’s core Communications business is expected to remain the dominant revenue driver given scale and customer breadth, with demand supported by usage expansion in messaging and voice workflows and continued mix optimization to protect gross margin. The company’s most promising segment is Twilio Marketing, which is positioned to deliver outsized growth from a smaller base by deepening adoption of customer engagement tools across mid-market and enterprise clients; last quarter, Twilio Marketing generated USD 75.47 million of revenue and is targeting continued double-digit year-over-year expansion.

Last Quarter Review

Twilio’s previous quarter delivered revenue of USD 1.30 billion, a gross profit margin of 48.63%, GAAP net profit attributable to the parent company of USD 37.25 million, a net profit margin of 2.86%, and adjusted EPS of USD 1.25, with year-over-year growth of 14.71% for revenue and 22.55% for adjusted EPS. A standout highlight was profitability leverage: net income rose quarter-on-quarter by 66.12% as operating discipline and revenue scale drove improved earnings quality. Main business results showed Twilio Communications at USD 1.15 billion and Twilio Marketing at USD 75.47 million, reflecting the concentration of revenue in Communications and continued traction for Marketing solutions, with growth supported by product enhancements and customer expansion.

Current Quarter Outlook

Communications Platform

The Communications segment is the foundation of Twilio’s business, anchoring customer engagement workflows across messaging, voice, and connectivity. This quarter, revenue resilience is expected to stem from usage expansion in core messaging pipelines, carrier cost optimization, and a disciplined approach to low-margin traffic that sustains gross profit margin stability. The company has maintained pricing and mix management to mitigate volatility from carrier fees, while selectively prioritizing higher-value use cases tied to authentication and notifications. A continued focus on enterprise accounts and usage-based growth should support revenue in the USD 1.24 billion to USD 1.26 billion range within total consolidated expectations, with incremental margin improvement driven by scale economics and reduced network costs. Investors will evaluate volume trends in programmable messaging, the balance of US versus international traffic, and the cadence of large customer renewals to gauge the sustainability of the segment’s contribution to consolidated margins.

Twilio Marketing

Twilio Marketing is poised for faster-than-average growth given its expanding role in omnichannel customer engagement, campaign orchestration, and personalization. With revenue of USD 75.47 million last quarter, the segment benefits from improved product integration and clearer value propositions for marketing teams that seek measurable conversions. This quarter’s outlook centers on cross-sell into existing Communications customers, accelerating adoption among mid-market brands, and product-led enhancements that reduce time-to-value for complex deployments. The growth narrative is supported by better attribution tooling, audience segmentation features, and use case templates that make it simpler to launch targeted campaigns. While still a smaller contributor to total revenue, Marketing’s dollar retention and expansion metrics have been improving, positioning the segment as a key lever for consolidated gross margin mix over time as software-led revenues carry higher margin potential compared to usage-based communications.

Key Stock Price Drivers

The primary stock price drivers this quarter will be top-line growth relative to consensus, margin progression, and the quality of earnings in adjusted EPS delivery. Beating the USD 1.32 billion revenue estimate by showing sustained messaging volumes and healthy contribution from higher-margin workloads would reinforce the narrative of profitable growth. On margins, investors will scrutinize gross profit margin in relation to last quarter’s 48.63% and assess whether carrier cost management and product mix sustain stability or deliver incremental improvement. Adjusted EPS near USD 1.24 will be evaluated alongside EBIT of USD 237.01 million to confirm operating leverage; variances in operating expenses, especially R&D and sales and marketing, will signal management’s pacing between growth investment and profitability. Any updates on customer retention trends, large enterprise wins, or increased adoption of AI-enabled engagement features could act as catalysts, while commentary on macro usage sensitivity or carrier cost dynamics will shape near-term multiple expansion.

Analyst Opinions

The balance of recent institutional commentary is mostly positive, with a strong cohort of Buy ratings versus a smaller set of Hold and Sell views. Well-known firms have reiterated constructive stances: Monness maintained a Buy with a USD 175.00 target, highlighting operational execution and product innovation; William Blair reiterated a Buy, citing strategic positioning and durable performance; KeyBanc kept a Buy rating emphasizing growth resilience; Citizens JMP sustained a Buy with a USD 165.00 target and pointed to improving fundamentals; and Robert W. Baird reaffirmed a Buy at USD 130.00 consistent with stable margins and growth potential. On the cautious side, Stifel Nicolaus maintained Hold with a USD 120.00 target, and RBC Capital reiterated Sell at USD 75.00, reflecting valuation and competitive considerations. The prevailing majority favors the bullish view. These analysts expect Twilio’s reported numbers to align with or modestly exceed consensus on revenue and adjusted EPS, supported by disciplined cost management and ongoing demand in Communications. Their thesis underscores improving EBIT and adjusted EPS trends, early traction in Marketing-led engagement solutions, and credible progress on margin durability. The bullish cohort also notes that clarity on product roadmaps and customer pipeline visibility can sustain premium relative valuation if high-margin software-led components continue to scale within the broader platform. In sum, institutional sentiment anticipates solid execution on February 12, 2026 Post Market, with attention centered on top-line trajectory, margin steadiness, and signals of continued mix improvement benefiting profitability.