Twilio Inc. (NYSE:TWLO) shares are flying on Friday after the cloud communications company delivered a second-quarter report that beat expectations on revenue and earnings.
- Twilio shares are powering higher. What’s fueling TWLO momentum?
Record Profitability and a Revenue Beat Set the Tone
Second-quarter revenue of $1.50 billion outpaced the $1.43 billion consensus and represented a 22% advance from the same period a year earlier. Adjusted earnings of $1.47 per share surpassed the $1.32 estimate by more than 11%. Operating cash flow reached $372.4 million while free cash flow totaled $352.6 million, both figures that CEO Khozema Shipchandler described as records for the company.
Shipchandler called the period a powerful new chapter for Twilio, pointing to another quarter of organic growth acceleration alongside record profitability and free cash flow. The company bought back $66 million of its own shares during the quarter and held $826 million in remaining repurchase capacity as of June 30.
Third-quarter revenue guidance of nearly $1.51 billion to $1.52 billion came in ahead of analyst expectations alongside adjusted earnings guidance of $1.42 to $1.47 per share. The company also significantly raised its full-year 2026 revenue growth outlook, lifting the range to 18% to 18.5% from a prior projection of 14% to 15%, a move that signals management’s growing confidence in the business trajectory through the remainder of the year.
Four Analysts Raise Price Targets Following the Results
BTIG’s Nick Altmann held his Buy rating and raised his price target to $285 from $245. Needham’s Joshua Reilly kept his Buy and pushed his target to $280 from $250. Rosenblatt’s Catharine Trebnick maintained her Buy and lifted her objective to $275 from $230. Keybanc’s Jackson Ader maintained his Overweight rating and raised his target to $250 from $200.
TWLO Versus The Trend: Extended, But Still In Control
Twilio isn’t just trading above its trend gauges, but it’s sitting well above them. The stock is 20.4% above its 20‑day SMA, 18.7% above its 50‑day SMA, 35.1% above its 100‑day SMA, and 58.7% above its 200‑day SMA. That kind of distance signals a strong trend, but it also hints at vulnerability if the tape softens and fast money decides to lock in gains.
The longer‑term backdrop remains supportive. The 50‑day SMA is still above the 200‑day SMA after the golden cross in November 2025, which keeps the broader trend pointed higher. The near‑term tension comes from stretched momentum. RSI at 73.72 is firmly overbought, a reading that doesn’t guarantee a reversal but often precedes a pause, a pullback, or a choppy consolidation before the next move.
- Key Resistance: $238.48 — sits at the 52‑week high zone where breakouts either accelerate or run into profit‑taking.
- Key Support: $203.27 — lines up near the 50‑day SMA, a common trend‑support area if the stock needs to cool off without breaking the larger uptrend.
TWLO Shares Are Booming
TWLO Price Action: Twilio shares were up 29.11% at $249.44 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.
Image: Tada Images/Shutterstock
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