Twilio (TWLO) Beats Q3 Earnings and Revenue Estimates

Core Insights - Twilio reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, and showing an increase from $1.02 per share a year ago, resulting in an earnings surprise of +19.05% [1] - The company achieved revenues of $1.3 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.90% and increasing from $1.13 billion year-over-year [2] - Twilio has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Earnings Outlook - The future performance of Twilio's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $1.28 billion, while for the current fiscal year, the estimate is $4.50 on revenues of $4.92 billion [7] Industry Context - The Internet - Software industry, to which Twilio belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]