Twilio Inc (NYSE:TWLO) shares are trading higher on Friday after the company reported better-than-expected first-quarter financial results and issued second-quarter guidance above estimates.

Also, the company raised its fiscal 2026 sales guidance above estimates.

BTIG analyst Nick Altmann reiterated a Buy rating on Twilio and raised his price forecast to $215 from $175, citing a standout quarter and growing confidence in the company's role in the AI-driven communications landscape.

Strong Quarter Drives Growth Reacceleration

Altmann said Twilio delivered one of the strongest software earnings prints in recent memory, with organic revenue growth accelerating to 16%, well above his 10.5% estimate and 13% bull-case scenario.

Reported revenue growth reached 20%, while gross profit also grew 16%, marking a sharp acceleration from the prior quarter.

He noted that growth was broad-based across channels, industries, and ISVs, rather than driven by any single customer or use case.

Twilio also demonstrated improving efficiency, with operating margins of 20% and operating income growth of 31% year over year, alongside GAAP margins improving to 8%.

AI And Platform Consolidation Support Long-Term Upside

Altmann said Twilio's positioning as a communications infrastructure platform for the AI- and agentic-era is becoming increasingly clear.

He explained that as AI adoption grows, customers are likely to consolidate communication channels onto a single platform to enable more contextual engagement.

While this trend is still emerging, he believes it remains underappreciated and could drive further share gains for Twilio.

He highlighted strong performance across products, including messaging growth of 25% year over year, voice growth of 20%, and software add-ons such as Branded Calling and Conversational Intelligence growing by more than 100%.

Outlook Improves With Higher Targets And Valuation

Altmann said Twilio raised its full-year organic growth outlook to 9.5%–10.5%, up from 8%–9%, and increased its operating margin framework by 30 basis points to 19%.

Despite some headwinds from A2P fees, the company expects gross profit growth to track organic revenue growth.

Based on these improvements, Altmann raised his price forecast, valuing the stock at 26x EV/CY27E free cash flow, and reiterated Twilio as his Top Pick, citing continued execution and strengthening fundamentals.

Altmann expects second-quarter revenue of $1.43 billion and EPS of $1.30. He expects fiscal 2026 revenue of $5.80 billion and EPS of $5.67.

Technical Analysis

Twilio is trading above its prior 52-week high ($154.64), which signals buyers are willing to pay new-cycle prices. The stock is trading 29.1% above its 20-day simple moving average (SMA) and 37.2% above its 100-day SMA, suggesting strong short- and intermediate-term trend control by buyers.

The moving average convergence divergence (MACD), a trend/momentum indicator, is bullish with the MACD line above the signal line and a positive histogram, which suggests strengthening upside pressure. When MACD stays above its signal line, it typically means pullbacks are getting bought faster than they are sold.

Over the past 12 months, the stock has risen 79.93%, consistent with a longer-term uptrend that has rewarded trend-following strategies. The golden cross in November 2025 (50-day SMA moving above the 200-day SMA) adds context that the longer-term trend flipped constructive after the September 2025 death cross.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the August 6, 2026 (estimated) earnings report.

  • EPS Estimate: $1.15 (Down from $1.19 YoY)
  • Revenue Estimate: $1.39 Billion (Up from $1.23 Billion YoY)
  • Valuation: P/E of 224.3x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $177.79. Recent analyst moves include:

  • Wells Fargo: Overweight (Raises Target to $200.00) (May 1)
  • Citizens: Market Outperform (Raises Target to $210.00) (May 1)
  • Keybanc: Overweight (Raises Target to $200.00) (May 1)

Price Action

TWLO Stock Price Activity: Twilio shares were up 19.19% at $176.48 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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