Twilio Shows Durable Profitability Even With Fee Headwinds: Analyst

by | Feb 13, 2026 | General

Twilio Inc. (NYSE:TWLO) stock rose Friday after the cloud communications platform delivered a decisive fourth-quarter earnings beat and issued stronger-than-expected 2026 guidance.

Rosenblatt maintained a constructive stance on the stock, citing accelerating demand and growing traction in AI-driven communications.

Strong Q4 Beat Signals Demand Re-Acceleration

Analyst Catharine Trebnick maintained a Buy rating on Twilio and a $180 price forecast.

Trebnick said Twilio delivered a strong fourth-quarter beat, showing clear signs of re-accelerating demand and durable profitability as it shifts from a traditional CPaaS provider into an AI-era communications infrastructure platform.

Twilio grew revenue 14% year over year to about $1.36 billion, with broad-based strength across products and channels, the analyst noted.

Voice posted its best growth in three years, messaging trends remained solid, and self-serve and ISV revenue climbed more than 25%, she said.

Multi-product customer adoption also jumped 26%, while software add-ons such as Verify grew more than 20%, Trebnick said.

FY26 Outlook Comes In Ahead Of Expectations

The analyst noted that Twilio’s outlook for fiscal 2026 came in ahead of expectations, with management guiding to roughly 12% revenue growth at the midpoint and about $1.05 billion in adjusted operating income and free cash flow, implying an operating margin near 18.5%.

She highlighted strong momentum in Voice AI, which surged more than 60% year over year, along with major customer wins that support Twilio’s positioning as a foundational layer for AI-driven communications.

Profitability Holds Despite Margin Headwinds

Trebnick noted that profitability held up well despite margin pressure from rising A2P fees, as Twilio offset the headwind through platform efficiencies and cost discipline.

Operating margin expanded to 18.8%, and adjusted EPS reached $1.33, well above expectations, the analyst said.

Trebnick expects first-quarter revenue of $1.34 billion and EPS of $1.30.

TWLO Price Action: Twilio shares were up 1.68% at $112.26 at the time of publication on Friday, according to Benzinga Pro data.

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