Twilio Q2 2026 earnings lift shares as company cites early Voice AI traction
Twilio reported $1.5 billion in Q2 revenue and raised its 2026 outlook; management also said its new Voice AI product is gaining early traction.
By Colin Brandt · Enterprise Reporter
· 3 min read
Twilio Q2 2026 earnings sent shares higher after the customer-engagement software company reported $1.50 billion in second-quarter revenue, up 22% year over year, and raised its full-year outlook. The Aug. 6 release also drew attention to Voice AI, though the claim of early product traction came from management and the available reports contain no Voice AI customer, revenue or usage figures.
Twilio reported non-GAAP diluted earnings per share of $1.47 for the quarter ended June 30, up from $1.19 a year earlier. SiliconANGLE reported that the result exceeded the $1.32 consensus estimate it cited, while revenue surpassed a $1.43 billion consensus target. The company recorded $284.6 million in non-GAAP operating income and $352.6 million in free cash flow.
Shares rose more than 17% in after-hours trading following the report, according to SiliconANGLE. Yahoo Finance separately reported a 16.5% premarket gain. Those figures describe different trading windows; they should not be read as a single-session move.
What did Twilio raise in its 2026 outlook?
Twilio increased its projected 2026 reported revenue growth to 18% to 18.5%, from its previous 14% to 15% range. Its organic growth forecast rose to 13% to 13.5%, compared with 9.5% to 10.5% previously.
- Non-GAAP operating-income guidance increased to $1.135 billion to $1.155 billion, from $1.08 billion to $1.10 billion.
- Free-cash-flow guidance increased to the same $1.135 billion to $1.155 billion range, also from $1.08 billion to $1.10 billion.
- For the third quarter, Twilio forecast revenue of $1.505 billion to $1.515 billion, representing 16% to 16.5% reported growth and 11% to 12% organic growth.
- Third-quarter non-GAAP EPS guidance was $1.42 to $1.47, with non-GAAP operating income projected at $285 million to $295 million.
The raise is the clearer financial change in the report. Twilio’s dollar-based net expansion rate was 116%, compared with 108% a year earlier, and operating cash flow reached $372.4 million, versus $277.1 million in the prior-year quarter.
Investors should separate the company’s non-GAAP operating figures from its headline GAAP earnings result. Twilio reported GAAP diluted EPS of $6.68, but said $5.91 per share of that figure reflected a non-cash benefit from releasing a significant portion of the valuation allowance against U.S. deferred-tax assets. That accounting item means the GAAP year-over-year EPS jump does not solely represent the quarter’s operations.
What is Twilio saying about Voice AI?
Twilio sells customer-engagement infrastructure spanning messaging, voice and email. At its SIGNAL conference in May, it introduced Voice AI, a product designed to let businesses build voice-based chatbots. Chief Executive Khozema Shipchandler told analysts the product had seen strong early traction, according to SiliconANGLE.
The available reports do not disclose adoption, bookings or revenue figures for Voice AI. The earnings release instead documented the broader revenue, profitability and cash-flow results. For now, the product is part of Twilio’s growth narrative rather than a separately measurable contributor in the supplied financial results.
Twilio had 5,492 employees as of June 30. It also repurchased $66 million of stock during the quarter under a program authorizing up to $2 billion in buybacks through the end of 2027; $826 million remained available as of June 30, the company said.
This story draws on original reporting from SiliconANGLE.
