TWLO

Polen Capital, an investment management company, released its "Polen 5Perspectives Small-Mid Growth Strategy" Q3 2026 investor letter. A copy of the letter can be downloaded here. The fund struggled during the third quarter of 2026 as volatility in AI-related equities, shifting investor expectations, and renewed concerns about inflation and interest rates weighed on small- and mid-cap growth stocks. The portfolio returned -12.52% net of fees, underperforming the Russell 2500 Growth Index, which declined 10.35%; however, the strategy remained ahead year to date, gaining 8.14% compared with the benchmark's 7.28% advance. Twist Bioscience, Twilio, and Embraer were the leading relative contributors, supported by strong operating results and improved guidance, while nLight, TeraWulf, and BWX Technologies were among the principal detractors. During the quarter, the portfolio increased its exposure to health care innovation, including biotechnology, genomics, and medical technology, while reducing industrial investments tied to electrification and AI infrastructure. Polen Capital believes the market pullback largely reflected a reset in elevated valuations and positioning rather than a broad deterioration in AI demand. Looking ahead, the firm sees opportunities in businesses applying AI to improve productivity and develop new products and services, while retaining conviction in the longer-term potential of AI infrastructure suppliers. In addition, please check the Fund's top five holdings to know its best picks in 2026. In its third-quarter 2026 investor letter, Polen 5Perspectives Small-Mid Growth Strategy highlighted stocks like Twilio Inc. (NYSE:TWLO). Twilio Inc. (NYSE:TWLO) provides cloud-based communications software that allows businesses to integrate messaging, voice, and customer engagement capabilities into their applications. The one-month return of Twilio Inc. (NYSE:TWLO) was -5.82% while its shares traded between $105.00 and $308.40 over the last 52 weeks. On October 22, 2026, Twilio Inc. (NYSE:TWLO) stock closed at approximately $253.63 per share, with a market capitalization of about $39.95 billion. Polen 5Perspectives Small-Mid Growth Strategy stated the following regarding Twilio Inc. (NYSE:TWLO) in its Q3 2026 investor letter: Twilio Inc. (NYSE:TWLO) is a cloud communications platform whose APIs enable businesses to embed messaging, voice, and customer engagement capabilities into their applications, increasingly in support of AI-driven interactions. Shares outperformed during the quarter following a strong second-quarter report, and management also raised full-year operating income and free cash flow guidance, reinforcing investor confidence in the company's positioning as infrastructure for customer engagement in the AI era. Twilio Inc. (NYSE:TWLO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 72 hedge fund portfolios held Twilio Inc. (NYSE:TWLO) at the end of the second quarter, which was 64 in the previous quarter. While we acknowledge the risk and potential of Twilio Inc. (NYSE:TWLO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Twilio Inc. (NYSE:TWLO) and shared Brown Advisory's thoughts on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years This article is originally published at Insider Monkey.

VERRA MOBILITY CORP (VRRM) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -29.7%. Revenues are expected to be $238.77 million, down 8.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.81% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Verra Mobility, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.56%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Verra Mobility will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Verra Mobility would post earnings of $0.33 per share when it actually produced earnings of $0.38, delivering a surprise of +15.15%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Verra Mobility doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Internet - Software industry, Twilio (TWLO), is soon expected to post earnings of $1.46 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +16.8%. Revenues for the quarter are expected to be $1.51 billion, up 16.3% from the year-ago quarter. The consensus EPS estimate for Twilio has been revised 0.4% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.71%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Twilio will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VERRA MOBILITY CORP (VRRM) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Polen Capital, an investment management company, released its "Polen 5Perspectives Small-Mid Growth Strategy" Q3 2026 investor letter. A copy of the letter can be downloaded here. The fund struggled during the third quarter of 2026 as volatility in AI-related equities, shifting investor expectations, and renewed concerns about inflation and interest rates weighed on small- and mid-cap growth stocks. The portfolio returned -12.52% net of fees, underperforming the Russell 2500 Growth Index, which declined 10.35%; however, the strategy remained ahead year to date, gaining 8.14% compared with the benchmark's 7.28% advance. Twist Bioscience, Twilio, and Embraer were the leading relative contributors, supported by strong operating results and improved guidance, while nLight, TeraWulf, and BWX Technologies were among the principal detractors. During the quarter, the portfolio increased its exposure to health care innovation, including biotechnology, genomics, and medical technology, while reducing industrial investments tied to electrification and AI infrastructure. Polen Capital believes the market pullback largely reflected a reset in elevated valuations and positioning rather than a broad deterioration in AI demand. Looking ahead, the firm sees opportunities in businesses applying AI to improve productivity and develop new products and services, while retaining conviction in the longer-term potential of AI infrastructure suppliers. In addition, please check the Fund's top five holdings to know its best picks in 2026. In its third-quarter 2026 investor letter, Polen 5Perspectives Small-Mid Growth Strategy highlighted stocks like nLIGHT, Inc. (NASDAQ:LASR). nLIGHT, Inc. (NASDAQ:LASR) develops high-power semiconductor and fiber lasers for defense, aerospace, and industrial applications. The one-month return of nLIGHT, Inc. (NASDAQ:LASR) was -10.81% while its shares traded between $28.05 and $86.95 over the last 52 weeks. On October 22, 2026, nLIGHT, Inc. (NASDAQ:LASR) stock closed at approximately $36.10 per share, with a market capitalization of about $2.06 billion. Polen 5Perspectives Small-Mid Growth Strategy stated the following regarding nLIGHT, Inc. (NASDAQ:LASR) in its Q3 2026 investor letter: nLIGHT, Inc. (NASDAQ:LASR) is a provider of high-power fiber lasers for aerospace, defense, and industrial applications. Despite reporting solid quarterly results, shares underperformed after the company issued third-quarter revenue guidance that came in below expectations, citing supply chain-related delays in sourcing optical components from overseas suppliers. We continue to monitor the position given the company's leading position in high power defense related laser programs, which we believe remains a durable long-term growth driver. For illustration purposes only. Photo from Pixabay/Pexels nLIGHT, Inc. (NASDAQ:LASR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 39 hedge fund portfolios held nLIGHT, Inc. (NASDAQ:LASR) at the end of the second quarter, which was 46 in the previous quarter. While we acknowledge the risk and potential of nLIGHT, Inc. (NASDAQ:LASR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered nLIGHT, Inc. (NASDAQ:LASR) and shared Meridian Funds' thoughts on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years This article is originally published at Insider Monkey.

Twilio (TWLO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +16.8%. Revenues are expected to be $1.51 billion, up 16.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.43% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Twilio, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.81%. On the other hand, the stock currently carries a Zacks Rank of #1. So, this combination indicates that Twilio will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Twilio would post earnings of $1.32 per share when it actually produced earnings of $1.47, delivering a surprise of +11.36%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Twilio appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Diebold Nixdorf, Incorporated (DBD), another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $1.31 for the quarter ended September 2026. This estimate points to a year-over-year change of -5.8%. Revenues for the quarter are expected to be $966.05 million, up 2.2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Diebold Nixdorf, Incorporated has remained unchanged. Nevertheless, the company now has an Earnings ESP of -11.23%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Diebold Nixdorf, Incorporated will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Twilio Inc. (TWLO) : Free Stock Analysis Report Diebold Nixdorf, Incorporated (DBD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ultra Clean Holdings, Inc. UCTT is set to report third-quarter 2026 results on Oct. 27, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 15.44% on average, beating estimates on the previous three occasions and missing once. The company is expected to record year-over-year revenue growth, supported by continued demand for semiconductor manufacturing solutions. However, elevated working capital requirements could have constrained cash flow, while cost pressures remain a potential risk to profitability. Ultra Clean is expected to have benefited from rising investments in artificial intelligence and advanced semiconductor manufacturing during the third quarter of 2026. Growing demand for high-performance computing and increasingly complex semiconductor technologies might have boosted demand for the company's critical subsystems, components and precision cleaning services, supporting revenue growth during the quarter. During the quarter under review, Ultra Clean's Products and Services businesses are likely to have generated incremental revenues from stronger customer demand. The company's technical expertise and customized solutions could have helped it address increasingly complex production needs and support business growth. Ultra Clean's continued execution of its UCT 3.0 strategy is expected to have strengthened its operational capabilities and lifted its performance in the September quarter. Investments in global manufacturing capacity, engineering and digital transformation could have improved production efficiency and enhanced the company's ability to support customers' evolving needs. However, Ultra Clean's performance during the to-be-reported quarter could have remained under pressure from fluctuations in semiconductor capital equipment spending and uncertain customer demand. Working capital requirements and manufacturing cost pressures might have constrained cash generation and profitability. For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $725.5 million, indicating an increase from $510 million recorded a year ago. The consensus mark for earnings is pegged at 91 cents per share, implying growth from 28 cents reported in the prior-year quarter. Our proven model does not predict an earnings beat for Ultra Clean for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: Ultra Clean carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Ultra Clean Holdings, Inc. price-eps-surprise | Ultra Clean Holdings, Inc. Quote Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season: Twilio Inc. TWLO has an Earnings ESP of +2.81% and currently sports a Zacks Rank #1. It is set to release its third-quarter 2026 numbers on Oct. 29. The Earnings ESP for Corning Incorporated GLW is +0.68%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 27. The Earnings ESP for Intel Corporation INTC is +2.22%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 29. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ultra Clean Holdings, Inc. (UCTT) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Twilio was added to the S&P 500 Equal Weighted Index and removed from two Russell small cap composite indices in early October 2026, reflecting a shift in how the business is classified across benchmark universes. - The index changes arrive alongside increasingly optimistic earnings estimates and broadly positive brokerage research, which together focus attention on Twilio's ability to convert higher-value customer engagement demand into sustained profitability. - We will look at how Twilio's investment narrative is influenced by this index reshuffle and the upgraded earnings outlook. Scan how fund flows are rotating around Twilio's index move, then shortlist other potential beneficiaries using our curated list of solid balance sheet and fundamentals (25 results). To be comfortable holding Twilio, you need to believe the customer engagement platform can keep turning rising usage of messaging, voice, email and data tools into durable cash generation. The near term hinge point is whether management can stabilise margins while revenue is forecast to grow at about 10.1% a year and net profit margins sit around 20.6%. The biggest operational risk is that low margin messaging, carrier fees and regulatory costs eat into that profitability just as AI driven communications and omnichannel use cases are expanding. The recent index reshuffle itself does not fundamentally change those drivers, although it can influence who owns the stock and how volatile trading feels. The most relevant recent development is Twilio's move into the S&P 500 Equal Weighted Index and removal from two Russell small cap composites. This shifts the ticker into portfolios that track larger, more diversified US companies and out of some small cap strategies that previously held it as part of their benchmarks. Why that matters for you is how future catalysts translate into actual demand for the shares. If Twilio executes on AI powered communications, Segment cross sell and ongoing cost discipline, any change in fundamentals will now be reflected in a different mix of index and active funds. Risks such as earnings forecast declines or gross margin pressure could also feed through more quickly to that broader investor base. Twilio's narrative projects US$7.6b revenue and US$485.1 million earnings by 2029. That profile lines up with analysts baking in 10.8% yearly revenue growth and an earnings decline of about US$614.9 million from current earnings of roughly US$1.1b. Learn how Twilio's fair value points to a 10% potential upside compared with its current price before the market closes the gap. One alternative story around Twilio leans hard into regulatory and localization risk. The most cautious analysts were assuming only 9.3% annual revenue growth to about US$7.3b and earnings of roughly US$503.7 million by 2029, well below bullish estimates. The takeaway is straightforward: opinions were already wide before this index reshuffle, so views may continue to evolve as the impact becomes clearer. Explore 3 other Twilio fair value estimates, including one that suggests as much as 12% downside from the current price. Don't just follow the ticker, dig into the data and build a conviction that's truly your own. - A great starting point for your Twilio research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision. - See our latest analysis for Twilio. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Twilio's overall financial health at a glance. Once you have a view on Twilio, it can help to widen the lens and see how other businesses compare on balance sheet strength, income potential and overall resilience using the Simply Wall St Screener. - For investors who want quality first and are happy to be patient, a good next step is to review companies that pair strong fundamentals with low leverage through the list of solid balance sheet and fundamentals (25 results). - If income is your priority and you prefer businesses that already return cash to shareholders, focus on opportunities with robust yields and payout histories using the 8 dividend fortresses. - When you are hunting for less crowded ideas backed by solid numbers, consider filtering for underfollowed businesses with strong fundamentals via the 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TWLO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Twilio (TWLO), which belongs to the Zacks Internet - Software industry. This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 14.74%. For the last reported quarter, Twilio came out with earnings of $1.47 per share versus the Zacks Consensus Estimate of $1.32 per share, representing a surprise of 11.36%. For the previous quarter, the company was expected to post earnings of $1.27 per share and it actually produced earnings of $1.5 per share, delivering a surprise of 18.11%. Thanks in part to this history, there has been a favorable change in earnings estimates for Twilio lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Twilio has an Earnings ESP of +2.81% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 29, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Twilio Inc. (TWLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at software development stocks, starting with Twilio (NYSE:TWLO). As legendary VC investor Marc Andreessen says, "Software is eating the world", and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. The 12 software development stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was 1.8% above. Luckily, software development stocks have performed well with share prices up 12% on average since the latest earnings results. Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE:TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels. Twilio reported revenues of $1.50 billion, up 22% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ billings estimates. Interestingly, the stock is up 47.8% since reporting and currently trades at $285.47. Is now the time to buy Twilio? Access our full analysis of the earnings results here, it’s free. Taking its name from the core advantage it delivers to customers, Fastly (NASDAQ:FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences. Fastly reported revenues of $183.3 million, up 23.3% year on year, outperforming analysts’ expectations by 5.3%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates. Fastly scored the biggest analyst estimate beat and highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $26.03. Is now the time to buy Fastly? Access our full analysis of the earnings results here, it’s free. With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ:AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online. Akamai reported revenues of $1.1 billion, up 5.4% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted a miss of analysts’ adjusted operating income estimates and full-year revenue guidance meeting analysts’ expectations. Akamai delivered the weakest performance against analyst estimates and weakest guidance update of the whole group. The stock is flat since the results and currently trades at $118.45. Read our full analysis of Akamai’s results here. Powering communications for tech giants like Microsoft, Google, and Zoom, Bandwidth (NASDAQ:BAND) provides cloud-based communications software and APIs that enable businesses to embed voice, messaging, and emergency services into their applications and platforms. Bandwidth reported revenues of $219.9 million, up 22.2% year on year. This result beat analysts’ expectations by 1.4%. It was a strong quarter as it also put up revenue guidance for next quarter beating analysts’ expectations and EBITDA guidance for next quarter beating analysts’ expectations. Bandwidth achieved the highest guidance raise in the group. The stock is up 11.8% since reporting and currently trades at $58.40. Read our full, actionable report on Bandwidth here, it’s free. With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE:NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks. Cloudflare reported revenues of $696.1 million, up 35.9% year on year. This number surpassed analysts’ expectations by 4.7%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations. Cloudflare pulled off the fastest revenue growth among its peers. The stock is up 24.3% since reporting and currently trades at $353.55. Read our full, actionable report on Cloudflare here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Braze sank 11% on below-consensus Q3 EPS guidance despite beating Q2 with 26% revenue growth, while Klaviyo refused to sell off in sympathy. IGV held flat and peers Twilio, HubSpot, and Monday.com showed no sympathy selling, confirming single-name repricing rather than a sector verdict. Bulls cite $1.1 billion in remaining obligations, up 27%, and a fresh $50 million buyback, while bears demand proof of AI leverage now. Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Klaviyo didn't make the cut. Enter your email to see the names that beat KVYO. The report is free. Enter your email and see if any of your stocks made the cut. Braze (NASDAQ:BRZE) delivered a beat and a raise on Tuesday afternoon, and its stock is tumbling anyway. The gap tells you the market is pricing the next quarter's earnings line rather than the full-year trajectory management is trying to build. Braze stock is down 12% to $26.58 early Wednesday after the company guided fiscal third-quarter adjusted earnings below what analysts had modeled. The move erases much of the summer bounce and puts the shares back into the $27 range on heavy volume. Meanwhile, Klaviyo (NYSE:KVYO) stock is up 3% to $18.42, notably refusing to sell off in sympathy with its closest-sized peer. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is nearly unchanged at $102.90. At the same time, the Invesco QQQ Trust (NASDAQ:QQQ) is down 0.36% to $715.80, so large-cap tech weakness isn't the driver of Braze's move. Braze's second-quarter fiscal 2027 print looked strong on the surface. The company's revenue reached $227.23 million, up 26.2% year over year (YoY), and its non-GAAP EPS of $0.19 beat the $0.16 consensus. Dollar-based net retention at Braze improved to 110% and its free cash flow jumped to $21.7 million. Free Report, Just Released Why Didn't KVYO Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And KVYO didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → CEO Bill Magnuson said Braze delivered 26% year-over-year revenue growth alongside improving operating leverage and record second-quarter free cash flow. The company's non-GAAP operating margin expanded to 9.7% from 3.4% a year earlier, and its large-customer cohort (spending at least $500,000 annually) grew to 361 from 282. The selloff traces to one line. Braze guided its third-quarter fiscal 2027 adjusted EPS to a range of $0.13 to $0.14, below Street models, even as its Q3 revenue guidance of $229 million to $230 million came in above consensus. Analysts at Raymond James told investors to buy the dip, calling Braze a secular winner and pointing to management's plan to accelerate investments ahead of next fiscal year. Klaviyo already reported its own Q2 on August 5, with revenue growth of 26.4% YoY and a raised full-year revenue outlook of $1.526 billion to $1.534 billion. That report is still doing the work today, keeping Klaviyo stock steady while Braze absorbs the guidance repricing. Twilio (NYSE:TWLO), HubSpot (NYSE:HUBS), and Monday.com (NASDAQ:MNDY) round out the customer engagement and CRM peer group, and none is trading down in sympathy this morning. The flat move in the software fund confirms this is a single-name repricing, not a sector verdict on growth software. The bull and bear cases are reading the same fact in opposite directions. The bulls point to Braze's $1.1 billion in remaining performance obligations, up 27% YoY, plus a completed $50 million repurchase and a fresh authorization of the same size. The bears see softer near-term margins landing at a moment when the market wants proof of AI leverage now. Braze hosts its Forge 2026 flagship conference September 28-30 in Las Vegas, with an investor reception on Tuesday, September 29. Investors can watch for management's commentary on AI Decisioning Studio, Agent Console adoption, and the newly signed three-year AWS strategic collaboration that expands Marketplace procurement and joint go-to-market. Braze also flagged Q3 margin pressure tied to Forge, global customer events, and new sales capacity added ahead of next year, which is exactly the spending pattern reflected in the softer earnings guide. Traders can stay tuned for the first sell-side revisions on out-year estimates, which will decide whether today's move gets bought back into the print. Investors weighing their exposure should calibrate their holdings carefully given management's decision to spend ahead of next year's growth. Share positions should reflect the fact that Braze's near-term margin dip is planned rather than accidental, and that the software fund held firm while a single name absorbed the guidance shock. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And KVYO wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and >;elm:context_link;itc:0;sec:content-canvas" data-yga="{"yLinkElement":"context_link","yModuleName":"content-canvas","yLinkText":"see which stocks made the list -->"}" class="link ">see which stocks made the list -->> Contact [email protected] for any questions or corrections.