Twilio Inc.’s TWLO AI-related customer wins could provide another growth driver. The company’s new platform combines Conversation Memory, Conversation Orchestrator, Conversation Intelligence and Agent Connect, helping businesses connect AI agents with customers across communication channels.
Early results are encouraging. Car Finance 247 signed a seven-figure deal to use Twilio’s new conversation layer. Its AI assistant, Carla, has handled about 288,000 customer conversations. Customers who interacted with Carla moved to approved leads at roughly 1.6 times the rate of those who did not, contributing to a multi-million-pound annual revenue uplift for the customer. This type of measurable result could encourage more companies to adopt Twilio’s AI tools.
Twilio is also winning deals with companies such as Vozzi, Olo and Atlassian. Vozzi is using several of Twilio’s AI products to support an AI-driven engagement journey, while Atlassian uses Twilio infrastructure for AI-powered customer support. These wins show demand beyond traditional messaging and voice.
The financial numbers provide further support. Twilio’s second-quarter 2026 revenues rose 22% year over year to $1.50 billion, with organic growth of 17%. Non-GAAP operating income increased 29% to $284.6 million, while free cash flow grew 34% to $352.6 million in the second quarter. Its dollar-based net expansion rate also improved to 116% from 108% in the year-ago quarter.
Management raised its 2026 organic revenue growth forecast to 13%-13.5%. If AI wins continue scaling, they could strengthen customer spending and help TWLO sustain its growth momentum. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $5.96 billion, indicating a 17.7% year-over-year increase.
Bandwidth and RingCentral Intensify Twilio’s AI Competition
Bandwidth BAND is a direct competitor in cloud communications and AI-driven customer engagement. In the second quarter of 2026, its revenues increased 22.2% year over year to $220 million, while adjusted EBITDA climbed 27% to $28 million.
Every $1 million-plus customer win included Bandwidth’s Maestro platform or AI services. Its new Bandwidth Build platform also allows AI agents to activate communications services and launch voice applications, increasing its relevance in the growing AI market.
RingCentral RNG competes through business communications and AI-powered customer engagement. Its second-quarter 2026 revenues rose 5.9% to $657 million, while adjusted EBITDA margin improved to 26.9% from 26% a year earlier.
RingCentral’s AI traction is notable. Customers using at least one paid AI product represented 13% of annual recurring revenues, doubling from the year-ago quarter. RingCentral also expanded AI agents within its RingCX contact-center platform and raised its 2026 revenue guidance range to $2.635-$2.646 billion from $2.62-$2.64 billion projected earlier.
These rivals show that Twilio’s AI growth opportunity comes with strong competition.
Twilio’s Price Performance, Valuation and Estimates
Twilio shares have jumped 70.8% year to date, while the Zacks Internet – Software industry has risen 2.9%.
Twilio YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, TWLO trades at a forward price-to-earnings ratio of 37.42, significantly above the industry’s average of 28.78.
Twilio Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Twilio’s 2026 and 2027 earnings implies a year-over-year increase of 20.3% and 14.1%, respectively. Estimates for 2026 and 2027 earnings have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Twilio currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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