9. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders — 72
Value of Holdings — $3.49 billion
Cloud Communications Delivers Growth With an Accounting Twist
Twilio Inc. (NYSE: TWLO) reported second-quarter 2026 revenue of $1.50 billion, up 22%, while organic revenue grew 17%. GAAP operating income increased 129% to $84.5 million, and free cash flow reached $352.6 million.
Its cloud communications infrastructure connects businesses and customers through messaging, voice, email, and other channels. The opportunity extends into conversations involving AI agents, although the commercial test remains paid usage and profitable delivery.
The difference between reported and organic growth deserves attention. The company’s organic measure excludes specified items, including incremental carrier messaging fees. That makes it useful for separating underlying expansion from changes that lift reported revenue.
Earnings also need a closer read. GAAP diluted earnings per share of $6.68 included a $5.91 noncash benefit from releasing a deferred-tax valuation allowance. That benefit should not be treated as recurring operating performance. Management raised its full-year reported revenue growth outlook to 18%–18.5% and its free cash flow forecast to $1.135 billion–$1.155 billion.
Stronger operating income and cash generation support the business case. Future analysis should focus on whether underlying communications demand and margins sustain that progress.
Ranking Rationale
Twilio Inc. (NYSE: TWLO) takes ninth place with 72 hedge fund holders, three more than the preceding entry. Its $3.49 billion combined stake adds context, while the holder count determines its position.
