Goldman Sachs maintains Twilio stock Buy rating and $145 target

On Thursday, Goldman Sachs reiterated its Buy rating and $145.00 price target for Twilio stock (NYSE:TWLO). Following the SIGNAL 2025 conference and a Management Q&A session on Sunday, May 14, the firm’s analysts remain confident in Twilio’s growth trajectory. The conference highlighted Twilio’s strategic efforts to expand its platform and product offerings, aiming to capture a larger share of the Customer Experience as a Service (CXaaS) market, which is valued at over $100 billion. With annual revenue of $4.58 billion and a healthy gross profit margin of 50.5%, Twilio maintains a strong financial position, holding more cash than debt on its balance sheet.

The company’s partnership with Microsoft (NASDAQ:MSFT) was a focal point, expected to enhance Twilio’s Conversational AI capabilities. This collaboration integrates Twilio’s communication infrastructure and customer data platform with Microsoft Azure’s AI development tools, positioning Twilio to secure a more significant portion of its customers’ AI budgets in the medium term.

Twilio’s SIGNAL event also marked the general availability of ConversationRelay, which features real-time voice bots utilizing large language models and domain-specific knowledge. Additionally, Twilio introduced Voice Intelligence, providing AI-powered insights through speech and text analytics.

New products were announced for Twilio’s core Communications portfolio, including Rich Communication Services (RCS), WhatsApp Business Calling, a Compliance Toolkit, and Data Residency options for SMS and Email within the European Union. Upgrades to the Segment Customer Data Platform (CDP) were also unveiled, featuring a revamped Journeys engine that enhances event-triggering, contextual payloads, and observability.

The integration of Twilio’s once separate products is seen as a significant step in enabling the company to deliver value throughout the entire customer engagement lifecycle. This ranges from RCS to advanced voice interactions and intelligence, all the way to follow-up emails. Goldman Sachs views Twilio as reaching a pivotal moment in its narrative and fundamental performance, with a compelling risk/reward ratio at 16 times its enterprise value to free cash flow for the calendar year 2026. InvestingPro analysis suggests the stock is slightly undervalued at current levels, with multiple ProTips pointing to strong financial health and growth potential. Discover comprehensive insights and detailed valuation metrics for Twilio and 1,400+ other stocks with an InvestingPro subscription.

In other recent news, Twilio has reported a strong performance with a 12% year-over-year revenue increase, marking its fourth consecutive quarter of growth. The company has also improved its EBIT margin to 18% in the first quarter of fiscal year 2025. UBS analyst Taylor McGinnis adjusted Twilio’s price target to $150, maintaining a Buy rating, citing the company’s operational improvements and lack of adverse effects from macroeconomic conditions. Meanwhile, Tigress Financial Partners reiterated a Buy rating with a $170 price target, emphasizing Twilio’s AI-driven growth and international expansion. Stifel analysts maintained a Hold rating with a $110 target, noting Twilio’s disciplined approach and robust profitability. Twilio recently announced a strategic partnership with Microsoft to enhance conversational AI solutions, aiming to improve customer interactions across various channels. Additionally, Twilio unveiled its next-generation platform at the SIGNAL conference, featuring advancements in AI, data, and communications to support seamless customer engagement. The company continues to focus on innovation and strategic partnerships to drive growth and shareholder value.

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