Twilio Stock Jumps 17% as Voice AI Powers Strong Earnings Beat and 22% Revenue Growth

Twilio's stock jumps on solid earnings and revenue beat and strong momentum in voice AI

A solid earnings and revenue beat helped to reignite investor enthusiasm for the communications software maker Twilio Inc. today, and its stock jumped more than 17% in after-hours trading. The company's second-quarter results were boosted by the rapid uptake of a new voice-based artificial intelligence product, the company said, and it also offered strong guidance for the September quarter. Twilio reported earnings before certain costs such as stock compensation of $1.47 per share, easily beating the analysts' consensus estimate of $1.32 per share. Revenue for the quarter jumped 22% from the same period one year ago to $1.5 billion, cruising past Wall Street's target of $1.43 billion in sales. San Francisco-based Twilio sells a cloud-based communications platform that offers tools for developers to embed voice, text messaging and video into their applications through easy-to-use application programming interfaces. The software also makes it easier for cloud-based apps to communication. In addition, it operates a growing business selling customer engagement tools such as the Twilio Engage growth automation platform, which is used by marketing teams to enhance customer relationships via more personalized experiences. Chief Executive Khozema Shipchandler (pictured) said the results show that the company has begun a powerful new chapter, marked by organic growth acceleration, record-breaking profitability and free cash flow. "At SIGNAL, we unveiled a revamped Twilio platform, giving customers the building blocks they need to power rich, lifelong conversations," he said, referring to the company's annual developer conference in May. "In a world where humans and AI agents increasingly work side by side, Twilio is providing the infrastructure to power them both." It was at SIGNAL that Twilio unveiled its new Voice AI product, which gives companies a way to build telephone chatbots that can understand what people are saying and reply to them naturally, without any human oversight. Shipchandler told analysts on a conference call that Voice AI has seen strong early traction. Looking to the third quarter, Twilio sees more of the same. It offered a healthy outlook, forecasting earnings of $1.42 to $1.47 per share on revenue of between $1.505 billion and $1.515 billion. That's better than expected, with analysts targeting earnings of just $1.40 per share on lower revenue of $1.46 billion. The company also raised its full-year revenue outlook, saying it now sees growth of between 18% and 18.5%, up from an earlier forecast of 14% to 15%. The after-hours surge in Twilio's stock price means that it's now up more than 35% in the year to date, outpacing many of its peers in a software industry that's still wary of the rise of AI models.

Twilio faces earnings test as AI voice growth meets cost reality By Investing.com

Twilio Inc. reports second-quarter results after the market close today, with investors eager to assess whether the cloud communications provider can sustain its positioning as critical infrastructure for the artificial intelligence era while managing near-term profitability pressures. Analysts expect earnings of $1.32 per share on revenue of $1.43 billion for the quarter ended June 30, representing year-over-year growth of 11% and 16% respectively. While revenue would mark a modest sequential increase from the $1.41 billion reported in the first quarter, the expected earnings figure represents a 12% decline from the $1.50 per share Twilio delivered three months ago, raising questions about margin trajectory. Wall Street maintains a Buy consensus on the stock, with 26 of 32 analysts rating it a Buy. The mean price target of $210.72 implies 9% upside from the current $193.22 share price. EPS estimates have remained essentially flat over the past 60 days, while revenue estimates have similarly held steady, suggesting analysts are confident in their near-term outlook. Notably, several firms have raised price targets in recent weeks. Stifel upgraded the stock to Buy from Hold on July 10 with a $260 target, while Goldman Sachs initiated coverage June 24 with a Buy rating and $300 price target. What Investors Are Watching The key question is whether Twilio's voice AI business can maintain its momentum. According to analyst commentary, voice grew 20% year-over-year in the first quarter as companies increasingly deploy AI agents for customer service. Multiple analysts cited voice AI as a "secular tailwind" that positions Twilio as essential infrastructure for the emerging wave of agentic AI applications that still require communications capabilities to reach end users. Investors will scrutinize the trajectory of Twilio's self-service business, which has been a standout growth driver. The segment grew 28% year-over-year in the fourth quarter of 2025, and analysts note that strong customer additions point to continued momentum. This channel serves as a leading indicator of developer adoption and AI startup activity -- management disclosed at its 2025 investor day that 50% of the Forbes 50 AI startups were paying customers. Gross margin trends will be critical given the sequential earnings decline expectations. Analysts have noted Twilio's "recent prudent playbook" of issuing conservative guidance, but the profitability trajectory matters as the company balances investment in AI capabilities against demands for improved operating leverage in its maturing business. Twilio beat first-quarter expectations handily, posting $1.50 per share versus the $1.27 consensus and revenue of $1.41 billion against a $1.34 billion forecast. That 18% earnings surprise and 5% revenue beat set a high bar for the current quarter. The stock trades at 33 times forward earnings, reflecting optimism about the company's AI-driven growth opportunity but also leaving little room for disappointment. With a market capitalization of $29.3 billion and shares down 19% from their 52-week high of $238.48, today's results will test whether Twilio's transformation into AI infrastructure can deliver both growth and improving profitability. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.