Twilio Inc (TWLO) AI Stock Analysis

Twilio Inc., headquartered in San Francisco, California, is a global provider of cloud communications solutions. Established in 2008, the company provides a customer engagement platform with application programming interfaces (APIs) that allow software developers to integrate voice, messaging, video, and email capabilities directly into software applications. The platform enables businesses to scale and optimize communication strategies across multiple use cases, including customer service, marketing, internal collaboration, and IoT applications. Operating in the United States and internationally, Twilio serves organizations of various sizes across diverse industries.

Twilio grew annual revenue from $2.84B in FY2021 to $5.07B in FY2025, posting a 5-year revenue CAGR of 23.5% from FY2020 to FY2025. After recording operating losses from FY2021 through FY2024, operating margin turned positive at 3.4% in FY2025, yielding net income of $33.8M and EPS of $3.12. Free cash flow improved from -$148.2M in FY2021 to $1.03B in FY2025. In the trailing twelve months, revenue reached $5.57B with an operating margin of 7.8% and EPS of $7.23. For the latest quarter ended June 30, 2026, quarterly revenue grew 22.0% year-over-year, while quarterly earnings grew 4671.5%.

As of June 30, 2026, Twilio held $2.66B in cash and short-term investments against $1.07B in total debt, resulting in a net cash position of $1.59B. Shareholders' equity was $8.98B with a debt-to-equity ratio of 0.12 and a current ratio of 4.62. In FY2025, the company generated $1.00B in operating cash flow while allocating $5.8M to capital expenditures and $868.9M to share buybacks. Its 5-year share count change was -10.7%.

Twilio trades at a trailing P/E of 33.8x and a forward P/E of 43.7x, compared to medians of 30.8x and 20.3x, respectively, for its S&P 500 Technology peers. Its EV/EBITDA multiple of 86.2x is above the peer group median of 19.5x, while its price-to-sales ratio of 6.7x compares to 6.2x for peers. Over the past year, Twilio's stock gained 130.0%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of -30.8% lags the SPY 5-year return of 83.0%.

Wall Street analysts cover Twilio with 19 Strong Buy, 6 Buy, 4 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target is $270.64, representing a 10.8% premium over the last close of $244.37. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $5.93 and revenue of $6.00B. For the following fiscal year, 31 analysts project revenue of $6.69B and EPS of $6.80. Twilio beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of Twilio Inc (TWLO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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