Why Is Twilio Stock Falling

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Twilio (TWLO) stock fell 15.2% on Friday, October 30, 2026, compared with a 1.8% loss for the S&P 500. The decline occurred a day after Twilio reported third-quarter results on October 29. News reports linked the fall to slowing growth on a day when four of the company's five peers also fell. How much slower does Twilio expect to grow in the fourth quarter?

Twilio Expects Slower Growth In The Fourth Quarter

Management set a fourth-quarter revenue target that it said means organic growth of 11% to 12%. That metric excludes extra U.S. carrier pass-through fees, and on that measure, Twilio grew 16% in the third quarter.

Third-quarter performance exceeded expectations. Revenue grew 19.9% from a year earlier to $1.56 billion, coming in above the $1.52 billion analysts expected. Management said adjusted operating income also finished ahead of expectations at $326 million.

During the October 29 call, management said revenue topped the high end of its own guidance, though by a smaller margin than the beats of 5% or more seen in the first two quarters. The company said it did not expect those larger beats to become the norm. Management attributed the smaller outperformance mainly to messaging, where organic growth slowed to 17% from 18% in the second quarter. Management also raised its full-year 2026 organic growth outlook to 15%, up from a previous range of 13% to 13.5%.

Did Other Tech Stocks Fall With Twilio?

News reports said U.S. stocks fell that day as selling of AI-linked shares spread after disappointing earnings from Amazon and Intel. The technology sector fund XLK lost 4.9%, and four of Twilio's five peers fell. DarkHorse Technologies dropped 11.6%, while VeriSign edged up. Twilio moved with its group but fell further than every one of its peers, logging a drop about three times the size of the sector fund's.

How Unusual Was Twilio's Drop?

Twilio had not fallen this much in a single session over the prior 365 days. The stock recorded four moves of at least this size during that period, all of them gains. The most recent was a 24.9% rise on August 7, 2026.

The shares reached their highest close of the past 12 months at $301.27 on October 1, 2026. From that date through October 30, the stock lost 31.9%, against a 1.1% fall for the S&P 500. Over the full 12 months, the stock still returned 83.7%, compared with 11.3% for the index. The October 30 close of $205.03 also sat well above the stock's lowest close in that span, which was $108.49 on February 17, 2026.

Twilio is expected to report its fourth-quarter results in February 2027, and organic revenue growth for that quarter is the figure to watch.

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