Twilio Surges 23.46% on Q1 2026 Results with 20% Revenue Growth, Raised Guidance

Twilio delivered its fastest revenue growth in three years in Q1 2026, with revenue reaching $1.41 billion — up 20% year-over-year on a reported basis and 16% organically . Non-GAAP EPS of $1.50 significantly beat the $1.27 consensus estimate, while non-GAAP operating margin improved 200 basis points to 20%. TWLO surged approximately 18-21% on the session following the report, with some sources citing an intraday high approaching 23%, as investors repriced the stock to reflect a materially improved growth trajectory.

The company raised its full-year organic revenue growth guidance from 8-9% to 9.5-10.5%, and now targets reported revenue growth of 14-15% for 2026, with non-GAAP operating income of $1.08-$1.10 billion. Dollar-based net expansion rate climbed to 114%, up from 107% a year ago, indicating existing customers are meaningfully increasing their Twilio spend — a key measure of platform stickiness in the communications-as-a-service market. Q2 guidance of $1.42-$1.43 billion in revenue was issued alongside the results.

Wall Street responded with a broad wave of price target upgrades. Mizuho raised its target to $200 from $165, joining KeyBanc and UBS at $200+, with Rosenblatt setting $210 and BTIG already at $175 pre-earnings. At least six analysts raised targets in the $192-$225 range, framing Twilio as foundational AI communications infrastructure as enterprises integrate conversational AI into customer engagement workflows — a narrative that could support sustained multiple expansion if the growth trajectory holds through year-end.

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