Twilio Sets 2027 Organic Revenue Growth Target of at Least 10%

Twilio set a 2027 target of at least 10% organic revenue growth, alongside operating income and free cash flow projections of at least $1.35 billion each, as it raised its 2026 outlook.

The company now expects 2026 organic revenue growth of 15%. It also forecast $1.19 billion to $1.2 billion each in non-GAAP income from operations and free cash flow.

Twilio’s third-quarter organic revenue increased 16% from a year earlier, while non-GAAP gross profit rose 18%. Non-GAAP income from operations reached $326 million and free cash flow totaled $370 million, both quarterly records.

Management described AI adoption overall as early-stage and cited momentum in Twilio’s Conversations layer. The company’s identity offering is in private beta. Management expects AI add-ons to lengthen calls and has not finalized a monetization model.

Messaging accounts for 60% of Twilio’s business and has lower gross margins, management said. U.S. carrier pass-through fees are expected to reduce 2026 non-GAAP gross margin by about 200 basis points.