Twilio Inc (TWLO) Gains Analyst Confidence with Strong Growth

Core Viewpoint - Twilio Inc (NYSE:TWLO) is considered a strong long-term investment following its robust Q4 results, with a Buy rating and a price target of $145 set by Needham [1][3]. Financial Performance - Twilio reported Q4 revenue of $1.37 billion, a 14% increase year-over-year, surpassing the consensus estimate of $1.32 billion [3]. - Adjusted EPS for the quarter was $1.33, exceeding estimates by $0.10 [3]. - Organic revenue growth was recorded at 12%, with significant improvements in operating income and free cash flow [3]. Future Guidance - For 2026, management anticipates 8.5% organic growth, which is viewed as conservative by Needham [4]. - The company has set a new operating income target of $1.23 billion for FY 2027, reflecting a 17% increase from FY 2025 guidance [4]. Credit Rating and Outlook - Moody's upgraded Twilio's rating to Ba1 from Ba2, citing a stable outlook supported by the company's solid market position and growth potential [4]. - Moody's projects Twilio will experience high single-digit growth or greater over the next two years, driven by increased usage and advancements in communications software [5]. Financial Strategy - Twilio is expected to maintain cash levels exceeding debt over the next two years, with share repurchases moderating [5].