Twilio's stock jumped more than 31% after the communications software maker's second-quarter earnings and revenue beat Wall Street estimates, with its new voice-based AI product cited as a growth driver. The company also guided third-quarter revenue above analyst expectations.
Twilio stock popped over 31% to $253.47 in midday trading on Friday, a day after the company reported second-quarter results that topped consensus estimates. Adjusted earnings per share rose 24% to $1.47 for the June quarter, while revenue climbed 22% to $1.50 billion. That topped analyst forecasts of $1.32 per share on $1.43 billion in revenue.
Voice AI product gains traction
Twilio's new Voice AI product, which lets companies build phone bots that understand and talk to customers without a human agent, appears to be gaining traction. According to William Blair analyst Arjun Bhatia: "Voice growth accelerated to over 20% in the quarter", marking the seventh consecutive quarter of accelerated growth. He added that voice still makes up less than 15% of Twilio's revenue, with most of the AI use cases and revenue still ahead.
Third-quarter guidance tops estimates
For the quarter ending in September, Twilio guided revenue to $1.51 billion at the midpoint, including acquisitions, above analyst estimates of $1.466 billion. Shares had already climbed 36% in 2026 heading into the earnings report, before Friday's jump added to that gain. UBS analyst Taylor McGinnis pointed to a recently signed 8-figure AI-native customer deal spanning multiple products as evidence that cross-sell efforts are gaining traction.
Tougher comparisons ahead
Bernstein Research analyst Peter Weed said Twilio could face tougher year-over-year comparisons in the second half of 2026 and 2027, even as cloud consumption trends continue to support growth. Not all of that growth is AI-driven, he said, since messaging growth still largely reflects traditional use cases such as notifications and authentication.
Twilio, founded in 2008, operates a cloud communications platform that lets developers embed voice, text messaging and video into their products through APIs. About three quarters of its revenue comes from a usage-based model, though subscription revenue has been growing. The stock carries a Composite Rating of 91 out of a best-possible 99. It also holds an Accumulation/Distribution Rating of C-minus.
Source: Investor's Business Daily
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