Research Alert: Twlo Prints Solid Q1 Results, Continued Margin Expansion; Conservative Guidance
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:TWLO posted Q1 2026 sales of $1.41B (+20% Y/Y), solidly beating consensus ($1.34B), with organic growth accelerating to 16% from 12% in the prior quarter, beating guidance for ~10.5% growth. Non-GAAP EPS of $1.50 (+32% Y/Y) significantly exceeded Street expectations ($1.27), while operating margin of 19.8% (+160 bps Y/Y) surpassed TWLO's guidance midpoint of 18.3%, reflecting continued efficiency improvements similar to prior periods, a key element to our bullish thesis. GAAP operating margin improved to 8% from 4% in Q4, helped by SBC coming down to 10% of revenue from 11% in Q4. For Q2, the company guided sales to $1.425B (+16% Y/Y, 2.5% above consensus) and raised its full-year organic growth guidance to ~10% from ~8.5%. We see room for continued momentum as AI products gain traction. DBNER exploded to 114% from 109% in the prior quarter, with impacts from inorganic sales. The addition of 43k new Active Customer Accounts to ~450k demonstrates strong customer acquisition trends that we expect to sustain.
