Twilio Set to Report Q4 Earnings: What's in Store for the Stock?

Twilio Inc. TWLO is scheduled to report fourth-quarter 2025 earnings on Feb. 12, after market close.

Twilio anticipates non-GAAP earnings per share between $1.17 and $1.22. The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged at $1.24 per share over the past 60 days, suggesting an improvement of 24% from the year-ago quarter’s $1.00.

TWLO’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 14.4%.

Twilio Inc. Price and EPS Surprise

Twilio Inc. price-eps-surprise | Twilio Inc. Quote

For the fourth quarter, the company anticipates revenues between $1.31 billion and $1.32 billion. The Zacks Consensus Estimate for revenues is pegged at $1.32 billion, indicating an increase of 10.2% from the year-ago quarter’s revenues of $1.19 billion.

Factors Likely to Influence TWLO’s Q4 Results

Twilio’s fourth-quarter results are likely to reflect gains from sustained digital transformation efforts as enterprises continue to reconfigure their setup for a hybrid operational environment. TWLO’s initiatives to expand its network with independent software vendors and global partners are likely to have positively impacted the fourth-quarter performance.

New product launches, including rich communication services and artificial intelligence (AI) enhancements, particularly with the integration of OpenAI’s Realtime API into Twilio’s platform, are expected to contribute to the to-be-reported-quarter’s results. Previous enhancements of Twilio’s Segment and Flex platforms with new products like Agent Colpilot, Linked Audiences and the Segment Data Graph are likely to have attracted more customers in the fourth quarter as well.

In the last reported quarter, Twilio added more than 43,000 new clients, taking the total active customer count to 392,000 as of Sept. 30, 2025. The trend in the growth of the customer base may have continued in the to-be-reported quarter.

Solutions like Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to the fourth-quarter performance. The company’s integration of AI in several communication and segment products is expected to have favored its fourth-quarter 2025 performance.

Ongoing macroeconomic challenges are likely to have hurt TWLO’s top line in the to-be-reported quarter. Enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.

What Our Model Says About TWLO’s Q4 Earnings

Our proven model does not conclusively predict an earnings beat for TWLO this season. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

Twilio carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

IPG Photonics IPGP has an Earnings ESP of +15.08% and presently sports a Zacks Rank #1.  You can see the complete list of today’s Zacks #1 Rank stocks here.

IPG Photonics is set to report fourth-quarter 2025 results on Feb. 12. The Zacks Consensus Estimate for the fourth-quarter earnings is pegged at 25 cents per share, revised upward by a penny over the past 30 days. Estimates for IPG Photonics’ EPS for the fourth quarter indicate a year-over-year increase of 38.9%.

Applied Materials AMAT is set to report first-quarter fiscal 2026 results on Feb. 12. The stock has an Earnings ESP of +3.06% and presently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Applied Materials’ first-quarter earnings has remained unchanged at $2.19 per share over the past 60 days. The consensus estimate for Applied Materials’ EPS for the first quarter implies a year-over-year decline of approximately 8%.

Vertiv VRT is set to report fourth-quarter 2025 results on Feb. 11. The stock has an Earnings ESP of +2.23% and presently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Vertiv’s fourth-quarter earnings is pegged at $1.29 per share, which has been revised upward by a penny over the past 30 days. Estimates for Vertiv’s fourth-quarter EPS call for year-over-year growth of 30.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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