Twilio (TWLO) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy TWLO?
Source: NASDAQ.COM
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TWLO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TWLO
Wall Street analysts forecast TWLO stock price to rise
20 Analyst Rating
14 Buy
4 Hold
2 Sell
Moderate Buy
Current: 110.410
Low
100.00
Averages
146.28
High
185.00
Current: 110.410
Low
100.00
Averages
146.28
High
185.00
About TWLO
Twilio Inc. provides a customer engagement platform to build direct, personalized relationships with their customers everywhere in the world. Its platform provides developers with tools to build, scale, and deploy real-time communications within software applications. Its segments include Twilio Communications (Communications) and Twilio Segment (Segment). The Communications segment consists of a variety of application programming interfaces (APIs) and software solutions to optimize communications between its customers and their end users. Its key offerings in its Communications segment include Messaging, Voice, Email (includes Marketing Campaigns), Flex and User Authentication and Identity. Its Twilio Flex is a digital engagement center for the entire customer journey. Twilio Segment is a customer data platform that provides businesses with the tools to harness the power of contextual data by unifying real-time information collected throughout each customer’s journey into a profile.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
French President Celebrates Successful Rocket Launch of 32 Amazon Leo Satellites
- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
Twilio Reports Strong Q4 Earnings and 2026 Guidance
- Strong Earnings Beat: Twilio reported a 14% year-over-year revenue increase to approximately $1.36 billion in Q4, indicating clear signs of demand re-acceleration, particularly in voice and messaging, as the company transitions from a traditional CPaaS to an AI-driven communications infrastructure platform.
- Optimistic 2026 Outlook: The company’s guidance for fiscal 2026 exceeded expectations, projecting about 12% revenue growth at the midpoint, with adjusted operating income and free cash flow around $1.05 billion, suggesting a robust growth trajectory.
- Profitability Remains Steady: Despite margin pressures from rising A2P fees, Twilio managed to offset these challenges through platform efficiencies and cost discipline, resulting in an operating margin expansion to 18.8% and adjusted EPS of $1.33, significantly above expectations.
- Positive Market Reaction: Following the earnings report, Twilio's stock rose 1.68% to $112.26, reflecting investor confidence in the company's growth prospects, particularly in the rapidly evolving AI-driven communications sector.
See More
Twilio Q4 Results Beat Estimates Amid Mixed Analyst Outlook
- Strong Performance: Twilio reported Q4 revenue of $1.37 billion, a 14% year-over-year increase that exceeded consensus estimates by $50 million, indicating ongoing growth potential in its cloud-based customer engagement platform.
- Profitability Metrics: The non-GAAP EPS of $1.33 surpassed expectations by $0.10, with a non-GAAP operating margin of 18.7%, showcasing effective management in cost control and profitability.
- Mixed Analyst Reactions: RBC Capital maintained an Underperform rating with a $100 price target, citing underwhelming 2026 guidance, while Wells Fargo issued an Overweight rating with a $147 target, highlighting acceleration in voice revenue growth.
- Cautious Market Outlook: Despite a strong Q4 performance, analysts expressed caution regarding future organic growth, suggesting that a sub-10% growth outlook may not be sufficient to excite investors, reflecting the prevailing sentiment in the software market.
See More
Arista Networks Surges Amid AI Networking Demand
- Earnings Growth Outlook: Arista Networks (ANET) reported strong demand for ethernet switches and routers in its quarterly results, now projecting a 25% revenue growth for the year, up from a previous target of 20%, highlighting the company's pivotal role in AI infrastructure spending.
- Stock Performance Excellence: Since May 2022, ANET's stock has outperformed the S&P 500 by 362%, reflecting strong market confidence in its growth potential, with CEO Ullal emphasizing the company's central role in mission-critical network transactions.
- Surge in Deferred Revenue: The company reported deferred revenue of $5.37 billion, indicating a growing backlog, and investors will closely monitor the conversion of multistage projects to ensure cash flow supports higher innovation spending.
- Positive Market Reaction: In pre-market trading, ANET's stock surged over 10%, demonstrating a positive market response to its robust performance and growth outlook, further solidifying its leadership position in the AI networking sector.
See More
JPMorgan: AI Disruption Fears Overstated for Software Sector
- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
See More
Movers in the Market: Applied Materials, Arista, Coinbase, DraftKings, Expedia, Rivian, Roku, Pinterest, and Others
- Market Overview: Stock futures are trading mostly lower as investors express caution.
- Investor Concerns: There is heightened anxiety regarding artificial intelligence developments.
- Upcoming Data: Investors are awaiting the consumer-price inflation report for January.
- Market Sentiment: Overall market sentiment remains tense as economic indicators are closely monitored.
See More
French President Celebrates Successful Rocket Launch of 32 Amazon Leo Satellites
- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
Twilio Reports Strong Q4 Earnings and 2026 Guidance
- Strong Earnings Beat: Twilio reported a 14% year-over-year revenue increase to approximately $1.36 billion in Q4, indicating clear signs of demand re-acceleration, particularly in voice and messaging, as the company transitions from a traditional CPaaS to an AI-driven communications infrastructure platform.
- Optimistic 2026 Outlook: The company’s guidance for fiscal 2026 exceeded expectations, projecting about 12% revenue growth at the midpoint, with adjusted operating income and free cash flow around $1.05 billion, suggesting a robust growth trajectory.
- Profitability Remains Steady: Despite margin pressures from rising A2P fees, Twilio managed to offset these challenges through platform efficiencies and cost discipline, resulting in an operating margin expansion to 18.8% and adjusted EPS of $1.33, significantly above expectations.
- Positive Market Reaction: Following the earnings report, Twilio's stock rose 1.68% to $112.26, reflecting investor confidence in the company's growth prospects, particularly in the rapidly evolving AI-driven communications sector.
See More
Twilio Q4 Results Beat Estimates Amid Mixed Analyst Outlook
- Strong Performance: Twilio reported Q4 revenue of $1.37 billion, a 14% year-over-year increase that exceeded consensus estimates by $50 million, indicating ongoing growth potential in its cloud-based customer engagement platform.
- Profitability Metrics: The non-GAAP EPS of $1.33 surpassed expectations by $0.10, with a non-GAAP operating margin of 18.7%, showcasing effective management in cost control and profitability.
- Mixed Analyst Reactions: RBC Capital maintained an Underperform rating with a $100 price target, citing underwhelming 2026 guidance, while Wells Fargo issued an Overweight rating with a $147 target, highlighting acceleration in voice revenue growth.
- Cautious Market Outlook: Despite a strong Q4 performance, analysts expressed caution regarding future organic growth, suggesting that a sub-10% growth outlook may not be sufficient to excite investors, reflecting the prevailing sentiment in the software market.
See More
Arista Networks Surges Amid AI Networking Demand
- Earnings Growth Outlook: Arista Networks (ANET) reported strong demand for ethernet switches and routers in its quarterly results, now projecting a 25% revenue growth for the year, up from a previous target of 20%, highlighting the company's pivotal role in AI infrastructure spending.
- Stock Performance Excellence: Since May 2022, ANET's stock has outperformed the S&P 500 by 362%, reflecting strong market confidence in its growth potential, with CEO Ullal emphasizing the company's central role in mission-critical network transactions.
- Surge in Deferred Revenue: The company reported deferred revenue of $5.37 billion, indicating a growing backlog, and investors will closely monitor the conversion of multistage projects to ensure cash flow supports higher innovation spending.
- Positive Market Reaction: In pre-market trading, ANET's stock surged over 10%, demonstrating a positive market response to its robust performance and growth outlook, further solidifying its leadership position in the AI networking sector.
See More
JPMorgan: AI Disruption Fears Overstated for Software Sector
- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
See More
Movers in the Market: Applied Materials, Arista, Coinbase, DraftKings, Expedia, Rivian, Roku, Pinterest, and Others
- Market Overview: Stock futures are trading mostly lower as investors express caution.
- Investor Concerns: There is heightened anxiety regarding artificial intelligence developments.
- Upcoming Data: Investors are awaiting the consumer-price inflation report for January.
- Market Sentiment: Overall market sentiment remains tense as economic indicators are closely monitored.
See More
