One of the misconceptions about artificial intelligence is that it would hurt tech companies across the board. For instance, Alphabet (GOOG) (GOOGL) stock dropped significantly in early 2025 on fears that AI chatbots would eat into Google's dominant internet search business.
But those fears didn’t come to pass because Alphabet incorporated AI into its search results, turning a potential liability into an advantage. GOOGL stock responded well and is up 141% in the last year.
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Now we’re seeing a similar story play out for Twilio (TWLO), the tech company that makes tools that allow developers to embed voice, email, and verification capabilities into applications. TWLO stock fell in early 2025, just like Alphabet, but the company is now reporting its fastest growth since 2022—and giving AI the credit.
Twilio stock is now a rocket, jumping nearly 90% in the last year and 45% in the last month. Let’s take a closer look at what’s happening with Twilio.
About Twilio Stock
Twilio, which is based in San Francisco, is a platform-as-a-service (PaaS) company that provides cloud communications, allowing developers to build and operate real-time communications in software applications. Its customer engagement platform allows users to send voice and text messages through applications, letting them build personalized customer relationships.
Twilio has a market capitalization of $28.5 billion. Shares are up 90% in the last 12 months, soundly beating the S&P 500’s ($SPX) return of 31%.
But with the company’s big increase in stock price over the last month, the company’s forward price-to-earnings ratio is at 34, an all-time high. Just three months ago, the forward P/E was less than 20.
www.barchart.com Twilio Beats on Earnings
One of the reasons why Twilio's stock is moving so well lately is because of the company’s solid first-quarter earnings report. Revenue was $1.41 billion, up 20% from a year ago, and earnings were $1.50 per share, which beat analysts’ expectations of $1.27 per share.
The company reported a series of new partnerships, including with Sierra, Bland.ai, PGA of America, Sella AI, and Solace. It attributed its strong quarter to sustained execution in self-serve and ISV channels, as well as improved customer engagement from enterprise and AI-native businesses.
Voice revenue jumped 20% from a year ago and accelerated for the sixth consecutive quarter, while software add-ons Branded Calling and Conversational Intelligence were both up more than 100% from a year ago—showing Twilio’s strength in voice AI and software.
“In Q1, we continued to see unprecedented demand for voice reimagined through the lens of AI, which is increasingly an entry point to the Twilio Inc. platform for AI natives and enterprises alike,” CEO Khozema Shipchandler told analysts in the company’s earnings call. “Customers no longer view Twilio as just a provider of communications channels. Instead, they are relying on us to be a foundational infrastructure layer for the era of AI.”
Management issued Q2 guidance for revenue between $1.42 billion and $1.43 billion, which represents growth of 15.5% to 16.5%. For the full year, the company is expecting $1.08 billion to $1.1 billion non-GAAP income, which would be a growth of 14% to 15% from 2025.
What Do Analysts Expect for TWLO Stock?
As Twilio demonstrates how it takes advantage of AI, analysts have shifted their sentiment in a bullish direction, moving from a consensus “Moderate Buy” rating to a rating of “Strong Buy” in the last three months. Of 26 analysts who cover TWLO stock, only one has a "Sell" rating.
www.barchart.com The mean price target of $190.75 is a slight reduction from where TWLO trades now, as the stock is moving higher faster than analysts can update their models. Wells Fargo increased its price target on the stock from $147 to $200 following the April 30 earnings report, while RBC Capital increased its target from $100 to $120.
Twilio is having an outstanding 2026, and the stock is still trading 53% off all-time highs set in 2021. While it’s a stretch to think that Twilio can return to those levels, and the valuation is a concern, Twilio’s embrace of AI has become a winning formula.
On the date of publication, Patrick Sanders did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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