Twilio Raises Annual Sales Growth Forecast Despite Slower Fourth-Quarter Outlook

Twilio raised its 2026 revenue growth forecast after reporting third-quarter sales of $1.56 billion on October 29, although its outlook for the final three months pointed to slower organic growth.

The communications platform provider said revenue increased 20% from a year earlier, while organic growth, which adjusts for specified acquisitions and other items, was 16%. GAAP operating income was approximately $149 million, compared with non-GAAP operating income of approximately $326 million. These are different accounting measures and should not be combined or substituted for one another.

Twilio lifted its full-year reported revenue growth projection to 20%, from an earlier range of 18% to 18.5%. Its full-year organic revenue growth projection increased to 15%, from 13% to 13.5%. The company also raised its 2026 non-GAAP operating income and free-cash-flow forecasts to $1.19 billion–$1.20 billion each.

For the fourth quarter, however, management projected revenue of $1.595 billion–$1.605 billion and organic growth of 11%–12%, below the 16% organic growth recorded in the third quarter. The distinction helps explain why a stronger full-year forecast did not necessarily imply an acceleration at year-end.

Twilio reported $389.2 million of cash provided by operating activities and $369.6 million in free cash flow during the quarter. The company also repurchased about $127 million of its shares.

The results reflect demand for business communications and customer-engagement infrastructure. Management has linked its longer-term opportunities to AI-enabled services, but the figures do not establish how much of current revenue came directly from artificial-intelligence products. Fourth-quarter and full-year projections remain subject to execution and market conditions.