Mizuho Reiterates Outperform on Twilio (TWLO) Ahead of Q3 Earnings, Sets $140 Target

Twilio Inc. (NYSE:TWLO) is one of the Trending AI Stocks on Wall Street’s Radar. On October 20, Mizuho maintained its Outperform rating on the stock with a $140 price target. The rating comes ahead of the company’s third-quarter earnings report, scheduled for October 30.

Twilio shares have fallen approximately 13% since its second-quarter results, underperforming the Nasdaq-100 index’s 6% gain during the same period. Nevertheless, the firm remains bullish on the stock, anticipating that the company will report solid revenue and operating income that beat expectations for the third quarter.

It also believes that Twilio will likely raise its 2025 guidance for both metrics. The firm also anticipates an upward revision to operating income guidance, highlighting how recent investments in voice AI and RCS technology do not reflect the start of a significant investment cycle.

It also believes that gross margin pressures won’t prevent the company from achieving over 20% compound annual growth rates in operating income and free cash flow through 2027.

Overall, Mizuho remains bullish on Twilio’s multiple growth drivers, highlighting how voice AI adoption and messaging/voice price increases should support growth into 2026.

Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company.

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