If Twilio achieves earnings of $4.59 per share in 2025 and maintains a price-to-earnings ratio of 29, the stock could potentially reach $134, indicating further upside.

In light of its strong performance, Twilio has raised its full-year organic revenue growth guidance to between 7.5% and 8.5%, and anticipates non-GAAP operating income to reach $862.5 million, a 38% increase from the previous year.

The company also noted a 7% increase in active customer accounts, reaching over 335,000, which highlights significant opportunities for cross-selling its AI solutions.

Twilio's dollar-based net expansion rate improved to 107%, indicating that existing customers are increasingly utilizing Twilio's services.

Despite the growth, Twilio achieved a net income of $20 million for the quarter, showcasing its profitability amid expansion.

Although Twilio's stock experienced a decline of over 4% in 2025, the recent quarterly report has sparked renewed interest among investors.

Following the release of its Q1 results on May 1, Twilio's stock rose over 2%, marking a recovery of 23% in the past month.

Currently, Twilio's stock trades at 23 times forward earnings, making it an appealing option for investors.

Analysts project a median 12-month price target of $130 for Twilio, suggesting a potential 30% increase from current levels, with expectations of continued earnings growth for 2025.

Looking ahead, Twilio forecasts its Q2 2025 revenue to surpass analyst expectations, reinforcing a positive outlook for sustained growth.

In the first quarter of 2025, Twilio reported a revenue of $1.17 billion, reflecting a 12% increase year-over-year, alongside a remarkable 42% growth in earnings, largely driven by the adoption of AI-focused tools.

Additionally, Twilio's AI tool, Conversation Relay, is gaining traction as demand for voice AI agents rises, with the market expected to grow at an annual rate of 35% over the next decade.