Twilio raises 2026 revenue and cash flow outlook after third-quarter beat

The company now expects 20% reported revenue growth for the year, though its fourth-quarter guide implies a slower exit pace of 17% to 17.5%.

Twilio beat third-quarter expectations and lifted its full-year 2026 outlook, but its own fourth-quarter guide shows growth slowing into the year end. Revenue came in at $1.56 billion against $1.54 billion expected, and earnings per share of $1.65 were $0.15 better than forecast.

The raise is the larger news. Twilio now expects reported revenue growth of 20% for 2026, up from 18% to 18.5%, and organic growth of 15%, up from 13% to 13.5%. Non-GAAP operating income and free cash flow are each guided to $1.19 billion to $1.20 billion, against $1.135 billion to $1.155 billion before. A company that raises both growth and cash generation is lifting the quality of its outlook, not just the top line.

The fourth-quarter guide tempers that. Twilio expects revenue of $1.595 billion to $1.605 billion, which is 17% to 17.5% reported growth and 11% to 12% organic growth. Both sit below the full-year figures, so the pace that earned the raise is not one management expects to hold. The next report will show whether it does. Fourth-quarter non-GAAP earnings per share are guided to $1.48 to $1.53, with non-GAAP operating income of $300 million to $310 million.

Chief executive Khozema Shipchandler said consumer AI adoption is accelerating demand for fast, reliable infrastructure, and that this positions Twilio to capitalise on the moment. That is a claim about demand, and the reported figures do not measure it directly. What the figures do show is cash being returned: Twilio repurchased $127.2 million of stock in the quarter, taking its $2.0 billion programme to about $1.3 billion, with roughly $700 million left.