Mizuho Reiterates Outperform on Twilio (TWLO) Ahead of Q3 Earnings, Sets $140 Target

Core Viewpoint - Twilio Inc. is recognized as a trending AI stock, with Mizuho maintaining an Outperform rating and a price target of $140 ahead of its upcoming earnings report on October 30 [1]. Financial Performance - Twilio shares have declined approximately 13% since the second-quarter results, underperforming the Nasdaq-100 index, which gained 6% during the same period [2]. - Mizuho anticipates that Twilio will report solid revenue and operating income that exceed expectations for the third quarter [2]. Future Guidance - The firm expects Twilio to raise its 2025 guidance for revenue and operating income, indicating confidence in the company's growth trajectory [3]. - An upward revision to operating income guidance is also anticipated, reflecting the impact of recent investments in voice AI and RCS technology [3]. Growth Drivers - Despite gross margin pressures, Mizuho believes Twilio can achieve over 20% compound annual growth rates in operating income and free cash flow through 2027 [4]. - The company is expected to benefit from multiple growth drivers, including the adoption of voice AI and increases in messaging/voice prices, supporting growth into 2026 [4].