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Twilio TWLO Gross margin

Gross margin at other companies

Adobe logo
AdobeADBE
89.4%+0.2pp
Cognizant logo
CognizantCTSH
33.5%-0.7pp
MTZ
MasTecMTZ
12.8%-0.3pp

Other financials

Income statement

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Revenue$1.4B+20.0%
Gross profit$684.2M+17.7%
Operating income$107.7M+366%
Net income$90.1M+350%
EPS (diluted)$0.57+375%

Balance sheet

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Cash & equivalents$542.0M+13.5%
Total debt$1.1B-3.0%
Total equity$7.8B-2.8%
Total assets$9.6B-2.4%

Cash flow

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Operating cash flow$153.2M-19.8%

Valuation

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Market cap$28.55B+27.6%
Enterprise value$29.08B+25.8%
P/E168.1×
P/S5.4×+0.5×

Profitability

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Operating margin4.6%
Net margin1.4%+0.7pp

Returns & leverage

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Return on equity0.8%+0.4pp
Debt / equity0.1×0.0×
Current ratio4.7×-0.1×

Where this comes from

Calculated from Twilio’s reported figures.

Based on trailing twelve months.

The official record: Twilio’s 10-Q, filed May 1, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Twilio's gross margin?
Twilio (TWLO) reported gross margin of 48.7% in Q1 2026.
How has Twilio's gross margin changed year-over-year?
Twilio's gross margin decreased by 3.6% year-over-year, from 50.5% to 48.7%.
What is the long-term trend for Twilio's gross margin?
Over 4 years (2021 to 2025), Twilio's gross margin has grown at a -0.3% compound annual growth rate (CAGR), from 201.1% to 198.7%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.