BTIG Starts Coverage on Twilio (TWLO), Sees Path to Sustainable Double-Digit Growth

Twilio Inc. (NYSE:TWLO) is included among the 12 Best Long Term US Stocks to Buy Now.

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On December 17, BTIG analyst Nick Altmann initiated coverage of Twilio Inc. (NYSE:TWLO) with a Buy rating and a $165 price target. In his research note, he said the company is executing well, while the total addressable market is improving and setting up for faster growth in 2026. That outlook supports the long-term case for the market share leader. BTIG also sees sustainable double-digit growth as achievable over the medium term.

Twilio shares are up more than 26% since the start of 2025. The move has been driven largely by strong quarterly results. In the third quarter of 2025, analysts were looking for earnings of $1.07 per share on $1.25 billion in revenue. Twilio delivered $1.25 per share in profit instead, along with $1.3 billion in sales. Revenue increased 15% year over year, as the company “saw broad-based strength across customer segments, ranging from start-ups to enterprises to ISVs,” according to CEO Khozema Shipchandler.

Non-GAAP earnings rose 22% from a year earlier. On a GAAP basis, results swung from a $4.9 million loss last year to a $40.9 million profit this quarter.

Cash generation stood out even more. Free cash flow climbed over 30% to $247.5 million during the quarter. Twilio Inc. (NYSE:TWLO) is also seeing rising demand from AI-focused customers. Several AI companies are using Twilio’s platform to build conversational AI tools. Revenue from its 10 largest voice AI start-up customers increased more than tenfold from a year ago. That momentum looks durable, with adoption of AI in cloud contact centers expected to grow more than five times over the next decade.

Twilio Inc. (NYSE:TWLO) is an American cloud communications company headquartered in San Francisco. It provides programmable tools that let developers handle calls, text messages, and other communication functions through web-based APIs.

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