Twilio Raised Its Full-Year Growth Guide to 18% and Posted Record Revenue of $1.5 Billion. The Stock Rose 25% in a Day.

Twilio (NYSE: TWLO) raised its 2026 outlook on Aug. 6. It now expects revenue to grow 18% to 18.5% this year, up from the 14% to 15% it guided just three months ago. The raise came alongside $1.50 billion of second-quarter revenue, up 22% year over year and the highest quarterly total in Twilio's history -- the previous record was set only one quarter earlier. Shares soared about 25% on Friday, closing at $241.28. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " Image source: Getty Images. The acceleration isn't an acquisition story. The gap between reported and organic growth is almost all carrier fees: $71 million from higher A2P charges on business text messages, which Twilio passes through at cost, against just $1.7 million of acquired revenue. Organic growth, which strips both out, was 17% -- up from 16% in the first quarter, and far above the 9.5% to 10.5% full-year organic outlook management gave a quarter ago. That organic outlook now stands at 13% to 13.5%. Existing customers are doing much of the work. Twilio's dollar-based net expansion rate reached 116% in the quarter, up from 108% a year ago, meaning existing customers as a group spent 16% more than they did a year earlier. That expansion is probably the best evidence the raise isn't just deal math. Profitability is keeping up with the growth. Non-GAAP (adjusted) income from operations rose 29% year over year to $285 million, and free cash flow reached $353 million, up from $264 million. But most of the $1.07 billion of GAAP net income came from a one-time, non-cash tax benefit worth $5.91 per share, not from operations. So, can the growth hold? Twilio's own third-quarter guidance is more modest, calling for 16% to 16.5% reported growth and 11% to 12% organic. The full-year raise leans on the first half's strength rather than promising further acceleration. And the stock is no longer cheap. After Friday's jump, the whole company is valued at about $36.6 billion -- roughly 32 times the free cash flow its raised outlook calls for this year. The quarter showed a base business speeding up, and the new guide made it official. At the new price, investors are paying for that speed to continue. Should you buy stock in Twilio right now? Before you buy stock in Twilio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Twilio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,374,595!* Now, it's worth noting Stock Advisor's total average return is 968% -- a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of August 9, 2026. Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Twilio. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Twilio Raised Its Full-Year Growth Guide to 18% and Posted Record Revenue of $1.5 Billion. The Stock Rose 25% in a Day.

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