Twilio (TWLO) shares fell around 2% in extended trading on Thursday even as the communications software company reported fourth-quarter results and guidance that were above Wall Street’s forecast.
For the period ending Dec. 31, Twilio said it earned an adjusted $1.33 per share as sales came in at $1.37B, up 14.3% year-over-year. Organic revenue growth was 12% during the period.
Analysts had expected the company to earn an adjusted $1.23 per share on $1.32B in revenue.
“2025 was one of the most balanced and successful years of execution in Twilio’s history and has fundamentally transformed our financial profile and innovation velocity,” said Khozema Shipchandler, CEO of Twilio, in a statement. “We accelerated revenue growth, expanded operating margins, and delivered significant growth in free cash flow. Importantly, our vision is resonating with customers and Twilio is quickly becoming a foundational infrastructure layer in the age of AI.”
For the first-quarter of fiscal 2026, Twilio expects sales to be between $1.335B and $1.345B, above the $1.29B estimate. Adjusted earnings are forecast to be between $1.21 and $1.26, compared to the consensus of $1.24 per share.
Looking ahead to fiscal 2026, Twilio expects revenue growth to be between 11.5% and 12.5% year-over-year, including an organic growth rate of 8% to 9%. That translated to full-year sales between $5.65B and $5.7B, above the $5.47B estimate.
The company will host a conference call at 5 p.m. EST to discuss the results.