- Twilio recently reported strong third-quarter 2025 results under new CEO Khozema Shipchandler, highlighting 15% revenue growth, 23% non-GAAP EPS growth, robust free cash flow, and a raised full-year revenue outlook, while also acquiring AI-based identity platform Stytch and disclosing a US$129 million insider share sale by Director Andrew Stafman and related parties.
- Together, the business rebound, focused push into AI-enhanced customer engagement, and sizable insider transaction give investors fresh information about both Twilio’s operational momentum and insider confidence levels.
- We’ll now examine how Twilio’s stronger third-quarter performance and upgraded outlook may reshape its existing investment narrative around AI-enabled communications.
AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10b in market cap – there’s still time to get in early.
Twilio Investment Narrative Recap
To own Twilio, you need to believe that AI-enabled, omnichannel communications will keep pulling more customer engagement spend onto its platform, and that management can convert that demand into durable profits. The latest quarter’s revenue and EPS growth, plus stronger free cash flow, support that thesis in the near term, while the biggest current risk remains margin pressure if low-margin messaging and higher carrier fees again outgrow higher-value software and AI products. The recent insider sale is large, but does not materially alter that risk-reward balance.
Among the recent developments, Twilio’s acquisition of AI-based identity platform Stytch looks most relevant to the current catalyst: deepening AI across its customer engagement stack. By tying authentication and identity data more tightly into communications APIs, Twilio is aiming to make AI-driven interactions more secure and personalized, which aligns directly with the market shift toward higher-value, integrated engagement solutions that could help offset gross margin pressure from commoditized messaging volumes.
Yet, against this improving execution, investors should be aware that rising carrier fees and a heavier mix of low-margin traffic could still…
Read the full narrative on Twilio (it’s free!)
Twilio’s narrative projects $5.9 billion revenue and $449.9 million earnings by 2028. This requires 7.9% yearly revenue growth and about a $429.7 million earnings increase from $20.2 million today.
Uncover how Twilio’s forecasts yield a $138.04 fair value, a 8% upside to its current price.
Exploring Other Perspectives
Seven Simply Wall St Community fair value estimates span roughly US$68 to US$167 per share, showing how far apart individual views can be. When you set those against Twilio’s reliance on higher-margin AI and software to offset messaging-related margin pressure, it underlines why comparing several viewpoints can sharpen your own expectations for the business.
Explore 7 other fair value estimates on Twilio – why the stock might be worth as much as 31% more than the current price!
Build Your Own Twilio Narrative
Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.
Ready For A Different Approach?
Our top stock finds are flying under the radar-for now. Get in early:
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we’re here to simplify it.
Discover if Twilio might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
