TWLONEUTRAL

TWLO Gross Margin Analysis

48.4%

Updated 11h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after directly covering the costs to deliver the service, and TWLO's 48.4% means it keeps about 48 cents of every dollar before other expenses.

Sector Performance

53th percentile

TWLO

48.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

48.6%(Jul 2026)

→ Stable

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Deep Analysis

Gross margin is the share of revenue left after directly covering the costs to deliver the service, and TWLO's 48.4% means it keeps about 48 cents of every dollar before other expenses.

That figure sits just above the sector median of 46.4%, placing the company at the 54th percentile among peers, which indicates a roughly average margin profile. The trend data is incomplete: the year-over-year change is N/A, while the quarter-over-quarter change is -0.4%, showing a slight recent decline from the prior quarter's 48.6% to 48.4%. Because the margin is close to the peer median and the only available movement is a small quarterly drop, the risk is limited but not clearly favorable. This combination offers neither a strong opportunity nor a clear red flag, since the level is competitive yet the direction is gently negative. The metric supports the overall NEUTRAL verdict, as the gross margin neither lifts the stock above its peers nor signals a deteriorating cost position.

Frequently Asked Questions

What does the Gross Margin tell investors about TWLO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are TWLO's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.