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Investing.com - FBN Securities has raised its price target on Twilio (NYSE:TWLO) stock to $155 from $125 while maintaining an Outperform rating following the company’s strong third-quarter results. This new target aligns closely with the consensus view, as InvestingPro data shows 21 analysts have recently revised their earnings expectations upward, with the highest analyst target currently at $175.
Twilio reported revenue growth of 15% year-over-year, with organic growth of 13%, exceeding consensus estimates by 4%. This marked the largest percentage beat for the company in a year. According to InvestingPro data, Twilio’s revenue reached $4.9 billion over the last twelve months, with the company maintaining a healthy gross profit margin of 49.4%.
The cloud communications platform provider posted a non-GAAP operating margin of 18.0%, representing an expansion of 1.9 percentage points and surpassing consensus by 1.1 percentage points. Non-GAAP earnings per share reached $1.25, significantly above the consensus estimate of $1.08. Notably, InvestingPro indicates that management has been aggressively buying back shares, and the company holds more cash than debt on its balance sheet, contributing to its "GREAT" overall financial health score.
Twilio’s fourth-quarter guidance also impressed, with projected revenue growth of 10% year-over-year, exceeding analyst expectations of 7%. The company forecasts non-GAAP earnings per share between $1.17 and $1.22 for the quarter, above the consensus estimate of $1.12. Looking further ahead, InvestingPro forecasts show EPS reaching $5.03 for fiscal year 2025, suggesting continued profit momentum.
FBN Securities cited these strong results and guidance as key factors in its decision to raise the price target, noting it has corrected its financial model for Twilio. Based on InvestingPro’s Fair Value assessment, the stock appears slightly undervalued despite its strong year-to-date return of 20.9%. Investors seeking deeper insights can access Twilio’s comprehensive Pro Research Report, one of 1,400+ detailed analyses available exclusively to InvestingPro subscribers.
In other recent news, Twilio has reported a strong performance in its third-quarter 2025, achieving record revenues and a notable 22.5% year-over-year growth in customer accounts. The company’s organic revenue exceeded guidance by approximately 4.5 percentage points, with significant growth in both voice services and messaging. This impressive performance has led several analyst firms to adjust their price targets for Twilio. Morgan Stanley raised its price target to $154, noting the broad-based strength across Twilio’s channels and products. Similarly, KeyBanc increased its price target to $156, citing accelerating growth in the Voice segment. Needham also raised its target to $145, highlighting Twilio’s organic growth of 13% in Q3 and the subsequent increase in the company’s fiscal year 2025 growth guidance. Stifel adjusted its price target to $120, emphasizing the impact of Twilio’s self-serve improvements and artificial intelligence offerings. Rosenblatt Securities maintained a Buy rating, pointing to Twilio’s expanded Dollar-Based Net Expansion Rate of 109%. These developments reflect a positive outlook from analysts on Twilio’s ongoing growth and profitability.
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