TwilioFRA:TWH -0.09%75 Pretax Margin % is 7.27% as of Mar. 2026. GuruFocus rates FRA:TWH with a GF Score™ of 75/100 and a GF Value™ of €102.15 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,822 Software companies, Twilio ranks worse than 52.59% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Twilio's Pre-Tax Income for the
three
months ended in Mar. 2026 was €88 Mil. Twilio's Revenue for the
three
months ended in Mar. 2026 was €1,217 Mil. Therefore, Twilio's pretax margin for the quarter that ended in Mar. 2026 was 7.27%.
The historical rank and industry rank for Twilio's Pretax Margin % or its related term are showing as below:
FRA:TWH'
s Pretax Margin % Range Over the Past 10 Years
Min: -33.81 Med: -21.32 Max: 2.47
Current: 2.47
FRA:TWH's Pretax Margin % is ranked worse than 52.59% of 2822
companies
in the Software industry
Industry Median: 3.5
vs FRA:TWH: 2.47
Twilio (FRA:TWH) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Twilio Pretax Margin % Related Terms
Twilio Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Twilio's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:TWH vs MDB, VRSN, CPAY: Pretax Margin % Comparison
For the Software - Infrastructure subindustry, Twilio's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Twilio Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Twilio's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Twilio's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Twilio (FRA:TWH) has a Pretax Margin % of 7.27% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Twilio and its competitors. According to the industry distribution chart, Twilio ranks #1484 out of 2822 companies in the Software industry, placing it in the top 52.6%.
Is Twilio's Pretax Margin % too high?
Twilio's current Pretax Margin % is 7.27%. The Software industry median Pretax Margin % is 3.50. Twilio's value of 7.27% is 107.7% above this industry median. Based on the distribution chart, Twilio ranks #1484 out of 2822 companies in the Software industry, which is below the industry midpoint. Overall, Twilio has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Twilio's Pretax Margin % compare to MDB and VRSN?
According to the Software industry distribution chart, Twilio ranks #1484 out of 2822 companies for Pretax Margin %. This places Twilio in the lower half of its industry. The industry median Pretax Margin % is 3.50. Twilio's value of 7.27% is 107.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.50, based on 2,822 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Twilio's current Pretax Margin % of 7.27% is 107.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Twilio and its competitors. For the Software industry, the median Pretax Margin % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Twilio's current Pretax Margin % is 7.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Twilio stock overvalued right now?
Based on GuruFocus' analysis, Twilio (FRA:TWH) is currently considered Significantly Overvalued. The stock's GF Value™ is €102.15, compared to a current price of €165.70 — trading 62.2% above its estimated fair value. The current Pretax Margin % is 7.27% and 107.7% above the Software industry median of 3.50. Twilio's overall GF Score™ is 75/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Twilio (FRA:TWH), the current Pretax Margin % is 7.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Twilio (FRA:TWH) Overvalued in 2026?
Based on GuruFocus' analysis, Twilio stock appears to be overvalued.
The current stock price of €165.70 is trading 62.2% above its estimated GF Value™ of €102.15.
GuruFocus considers Twilio to be Significantly Overvalued.
Key valuation signals for FRA:TWH:
Pretax Margin %: 7.27%
GF Value™: €102.15 vs. price of €165.70 (62.2% above fair value)
Industry Position: 107.7% above the Software median (#1484 of 2822)
No single metric tells the full story. See the FRA:TWH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Twilio is a cloud-based communications platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.
75GF Score
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Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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