Twilio (TWLO) Gains Momentum as AI and Voice Demand Accelerate

Twilio Inc. (NYSE:TWLO) is one of the AI Stocks to Watch. On February 13, Needham analyst Joshua Reilly reiterated a Buy rating on the stock with a $145.00 price target on Twilio (NYSE: TWLO). Twilio delivered stronger-than-expected fourth quarter performance, reporting organic revenue growth of 12% in the quarter compared to 10% guidance at the mid-point.

Growth was largely driven by its voice business, which grew in high teens for the year, while Voice AI revenue was up 49% year-over-year. Needham believes that the company’s momentum can carry into 2026, particularly as initial guidance calls for 8.5% organic revenue growth. With continued execution, the firm anticipates Twilio could outperform this outlook.

Twilio’s optimized Go-To-Market strategy, strong performance from ISV partners, and a product portfolio aligned with rising enterprise adoption of AI across messaging and voice further support the bullish view.

We believe these results are sustainable in 2026 as initial guidance calls for 8.5% organic revenue growth, which we expect is conservative by several hundred basis points with strong execution by the company. Twilio has an optimized GTM strategy, while ISV partners continue to outperform and the company has positioned the product portfolio for where the market is heading as customers increasingly adopt AI across messaging and voice. Finally, the company initiated a FY27 OI target of $1.23B, which would be 17% growth versus their current FY25 guidance.

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

While we acknowledge the potential of TWLO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.