Twilio Stock Surges 22% Following Optimistic Growth and Profitability Forecast

The cloud communications company projects strong financial performance through 2027, supported by expanding AI demand and shareholder returns.

Twilio's stock rose over 22% to its highest level since 2022 after the company shared an upbeat financial outlook at its investor event.
The company expects adjusted operating margins to grow to 21%-22% by 2027, exceeding analysts' consensus of 19.68%.
Twilio forecasts generating $3 billion in free cash flow from 2025 to 2027 and plans to return half of this to investors annually.
Preliminary Q4 results show 11% revenue growth year-over-year, surpassing analysts' expectations of 7.9%.
Twilio's services were used by over 9,000 AI firms in 2024, signaling growing demand for its tools within the artificial intelligence sector.