Twilio Q4 EPS Beats by 7%, Revenues Rise 14% to $1.37B
Twilio reported Q4 non-GAAP EPS of $1.33, surpassing the $1.24 estimate and up from $1.00 a year ago, on $1.37 billion revenue. Revenue grew 14% year over year, dollar-based net expansion rate reached 109%, active accounts rose to 402,000, and operating margin expanded 220bps to 18.7%.
1. Q4 Earnings and Revenue
Twilio delivered Q4 non-GAAP EPS of $1.33 per share, beating the consensus by $0.09 and up from $1.00 in the prior-year period. Revenue climbed 14% year over year to $1.37 billion, exceeding both estimates and management guidance of $1.31–$1.32 billion.
2. Profitability and Customer Metrics
Non-GAAP operating income rose 29.7% to $255.6 million, driving an 18.7% operating margin, up 220 basis points. Dollar-based net expansion rate held at 109%, while active customer accounts increased to over 402,000 from 392,000 in Q3.
3. Cash Flow and Share Repurchase
The company generated $271.6 million in operating cash flow and $256.1 million in free cash flow during Q4, ending with $2.47 billion in cash and short-term securities. Twilio repurchased $198 million of shares, leaving about $1.1 billion available under its $2 billion authorization.
4. FY26 Guidance
For fiscal 2026, Twilio expects organic revenue growth of 8–9% and reported growth of 11.5–12.5%, with non-GAAP operating income projected at $1.04–$1.06 billion and free cash flow in the same range. First-quarter revenue is guided at $1.31–$1.32 billion with non-GAAP EPS of $1.21–$1.26.