Twilio’s AI‑Driven Growth Outlook And Buybacks Might Change The Case For Investing In TWLO
- In February 2026, Twilio reported Q4 2025 revenue of US$1.37 billion, up from US$1.19 billion a year earlier, and a quarterly net loss of US$45.85 million, while full‑year 2025 revenue reached US$5.07 billion with net income of US$33.83 million and basic EPS of US$0.22 from continuing operations.
- At the same time, Twilio guided for continued double‑digit revenue growth in 2026 and highlighted accelerating Voice AI use cases as it repositions itself as core infrastructure for autonomous agents, supported by a share repurchase program that retired about 5.24% of its outstanding stock.
- Now we’ll examine how Twilio’s stronger AI‑driven revenue outlook and 2026 guidance could influence its previously outlined investment narrative.
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Twilio Investment Narrative Recap
To own Twilio today, you need to believe its communications platform can translate growing AI and automation usage into durable, profitable revenue, without letting low‑margin messaging or rising carrier fees erode that progress. The latest Q4 2025 results and 2026 guidance support the near‑term growth catalyst in Voice AI and multi‑product adoption, while also reminding investors that GAAP profitability remains fragile, with a quarterly net loss underscoring margin and execution risk.
The most relevant recent development is Twilio’s updated 2026 outlook, calling for 11.5% to 12.5% revenue growth after delivering US$5,067.22 million in 2025 sales and turning a modest annual profit. That guidance, alongside accelerating Voice AI use cases like Genspark’s “Call for Me” agent running on Twilio Programmable Voice, directly ties into the core catalyst of AI‑driven engagement, even as debates persist over margin pressure and competitive intensity.
Yet beneath the stronger AI story, investors should also be aware that rising carrier fees and intensifying CPaaS competition could still...
Read the full narrative on Twilio (it's free!)
Twilio's narrative projects $5.9 billion revenue and $449.9 million earnings by 2028. This requires 7.9% yearly revenue growth and about a $429.7 million earnings increase from $20.2 million today.
Uncover how Twilio's forecasts yield a $138.04 fair value, a 22% upside to its current price.
Exploring Other Perspectives
Some of the lowest‑priced analyst views were far more cautious, assuming roughly US$5.9 billion in revenue and about US$323.8 million in earnings by 2028, compared with narratives that lean heavily on AI and omnichannel adoption. If you are weighing Twilio after this earnings beat and upbeat 2026 guidance, it is worth knowing how differently others see the same numbers and exploring why their expectations are so much lower.
Explore 8 other fair value estimates on Twilio - why the stock might be worth 40% less than the current price!
Reach Your Own Conclusion
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 4 key rewards and 2 important warning signs that could impact your investment decision.
- Our free Twilio research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Twilio's overall financial health at a glance.
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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.
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