Twilio Reports 22% Customer Growth in Q3, Boosting Stock Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
0mins
Should l Buy TWLO?
Source: NASDAQ.COM
- Significant Customer Growth: Twilio's active customer accounts surged by 22% year-over-year in Q3 to 392,000, demonstrating strong appeal in the cloud communications market and further solidifying its market position.
- Revenue and Earnings Boost: The company reported a 22.5% year-over-year increase in earnings per share to $1.25, alongside a 15% rise in revenue, indicating success in enhancing customer spending and market share.
- Market Share Potential: Twilio's share in the CPaaS market is expected to grow from 22% in 2025 to 25%, potentially driving revenue to $27 billion by 2034, showcasing robust growth prospects.
- AI-Driven Cross-Selling Opportunities: Management noted that over 20% of customers are using multiple products, indicating that the adoption of AI products provides Twilio with more cross-selling opportunities, thereby driving future earnings growth.
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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: 126.550
Low
100.00
Averages
146.28
High
185.00
Current: 126.550
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.
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- Market Growth Confidence: Despite a slowdown in CPaaS market growth, Twilio is confident in achieving over 12% revenue growth, supported by new market verticals and an impressive go-to-market engine, showcasing strong execution potential.
- Significant Competitive Advantage: Twilio's developer-led sales strategy and deep technical foundation for building AI solutions enable it to navigate global competition and gross margin pressures in large messaging deals by leveraging innovation and strong customer relationships to avoid price wars.
See More
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- Shareholding Change: According to an SEC filing on February 17, 2026, 13D Management LLC sold its entire holding of 132,779 shares of Match Group during Q4, resulting in a value change of $4.69 million, indicating a diminished confidence in the company.
- Performance Metrics: As of February 13, 2026, Match Group's stock was priced at $30.50, down 8.2% year-over-year and underperforming the S&P 500 by 20 percentage points, reflecting market concerns about its future growth prospects.
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- Market Performance: As of February 13, 2026, Match Group shares were priced at $30.50, reflecting an 8.2% decline over the past year and underperforming the S&P 500 by 20 percentage points, raising concerns about its future growth prospects.
- Portfolio Shift: Post-transaction, 13D Management's 13F report revealed total assets under management of $84.05 million, with top holdings including Twilio ($8.64 million, 10.3%) and Mercury Systems ($7.58 million, 9.0%), indicating a strategic shift in their investment focus.
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See More
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- Nonfarm Payroll Decline: According to the Bureau of Labor Statistics, nonfarm payrolls dropped by 92,000 in February, with the unemployment rate rising from 4.3% to 4.4%, falling short of economists' expectations for a 50,000 job increase, suggesting challenges in economic recovery.
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See More
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- Focus on Performance: Emphasis is placed on leveraging past strong performances to inform current investment decisions.
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