Twilio Shares Jump 38% in 2026 as AI Demand Lifts Revenue Outlook to $5.8 Billion
Updated
Updated · The Motley Fool · Jun 29
Twilio Shares Jump 38% in 2026 as AI Demand Lifts Revenue Outlook to $5.8 Billion
3 articles · Updated · The Motley Fool · Jun 29
Summary
Twilio has climbed 38% this year while Palantir has fallen 33%, as investors reward stronger AI-driven growth and a cheaper valuation.
AI tools are pushing existing customers to spend more: Twilio's dollar-based net expansion rate rose to 114% in Q1, helping EPS increase 31.5% to $1.50 on 20% revenue growth to $1.41 billion.
Twilio now expects 2026 revenue of $5.8 billion, up 14% to 15% and above its prior 12% forecast, with stronger earnings and free-cash-flow growth also anticipated.
A client example underscored the trend: one digital marketing agency used Twilio's voice, messaging and voice AI products to build an AI agent that lifted bookings 39% and added $8.4 million in three months.
The company says AI integration could expand its addressable market to $158 billion by 2028, supporting the case for further upside despite this year's rally.