Twilio’s (TWLO) AI Push Finds a Strong Fit in Latin America

Gartner projects AI software spending to rise 60% to $453B this year. Twilio (TWLO) reported Q2 revenue growth of 22% YoY to $1.5B, with non-GAAP EPS up 23%. The company raised full-year revenue guidance to 18-18.5% growth. Twilio's AI tools are driving customer adoption and spending, with a dollar-based net expansion rate of 116%.

Snowflake (SNOW) reported Q1 FY2026 with GAAP net loss narrowing to $295.6M, adjusted EPS of $0.39, and raised fiscal 2027 revenue outlook to $5.8B. Twilio (TWLO) reported Q2 2026 revenue of $1.5B, non-GAAP EPS of $1.47, and raised full-year 2026 revenue growth outlook to 18-18.5%. Both stocks have 'Strong Buy' consensus ratings.

Twilio reported Q2 2026 revenue of $1.50B, up 22% reported and 17% organic year over year, with non-GAAP gross profit of $736M and free cash flow of $353M. Non-GAAP operating income was $285M (19% margin). Q3 guidance calls for $1.505B to $1.515B revenue and $285M to $295M non-GAAP operating income. Full-year 2026 revenue growth guidance was raised.

Twilio (TWLO) discussed its shift to communications infrastructure at Canaccord Genuity’s Growth Conference. It reported Q2 organic revenue growth in the high teens, messaging up 18% excluding carrier fees, voice above 20%, and Verify and self-serve each up more than 30%. Gross profit dollars rose 18% and non-GAAP operating margins approached 20%. Q3 guidance calls for 11% to 12% organic growth.

Twilio reported Q2 dollar-based net expansion of 116%, with incremental U.S. carrier fees adding about 5 percentage points, and said multi-product customers drove accelerating revenue growth. It launched a next-gen conversational platform and redesigned Console, citing >90% conversion uplift. Incremental carrier pass-through fees were $71 million, lowering non-GAAP gross margin to 49.1%. Twilio raised full-year outlook, including organic revenue growth to 13%-13.5%.

Twilio raised its full-year 2026 revenue growth outlook to 18% to 18.5% from 14% to 15% and reported record Q2 revenue of $1.5 billion, up 22% year over year. Organic growth was 17%. Non-GAAP operating income rose to $285 million and free cash flow to $353 million. Shares rose about 25% to $241.28.