Twilio (TWLO) is valued at $21.2 billion, outperforming the S&P 500 with a 30.4% stock increase last year. With improving margins and high-value products, Twilio may see a significant turnaround in 2026. Artificial intelligence has transformed Twilio, with revenue growing to an estimated $5.02 billion by 2025.

The third quarter saw Twilio’s revenue reach $1.3 billion, up 15% YoY, with adjusted earnings rising to $1.25 per share. The company raised full-year targets for revenue growth, profitability, and free cash flow, signaling strong confidence for 2026. Twilio’s performance in Q3 was driven by strength across all business aspects.

Twilio’s software add-ons, like Twilio Verify, grew over 25% YoY. Ten largest voice AI startup customers saw income surge over tenfold. A nine-figure deal with a cloud provider, margin pressures, and new initiatives to improve margins were also noteworthy. Twilio raised its full-year 2025 outlook, expecting significant growth in revenue and income.

Twilio is rated a consensus “Moderate Buy” on Wall Street, with analysts predicting substantial earnings growth in 2025 and 2026. The stock is currently trading at 25 times forward 2026 earnings, presenting an opportunity for growth. Analysts have an average target price of $141.80, implying a 43.5% potential increase in the next 12 months.

Read more at Yahoo Finance: Is Twilio Stock Ready for a Major Turnaround in 2026?