Twilio on Thursday updated its full-year outlook and released first-quarter results that topped expectations, reflecting continued appetite from customers for cloud-based communications and AI-enabled engagement tools. The company said investors reacted positively, with its shares rising 18% in after-hours trading.
The San Francisco-based communications platform, which offers messaging, voice and email products for customer interactions, reported first-quarter revenue of $1.41 billion, a 20% increase from the prior year and above the approximately $1.34 billion analysts had estimated, according to LSEG data cited by the company. Adjusted earnings per share came in at $1.50, outpacing an anticipated $1.27.
Net income for the quarter was $90 million, or $0.57 per share, compared with $20 million, or $0.12 per share, a year earlier. Twilio also provided a second-quarter revenue projection of $1.42 billion to $1.43 billion, which the company said was ahead of analysts' estimates and indicative of continued momentum in its core communications business.
Looking further ahead, Twilio raised its 2026 revenue-growth forecast to a range of 14% to 15%, up from a prior range of 11.5% to 12.5%. At the same time, it increased its targets for operating income and free cash flow, now expecting between $1.08 billion and $1.10 billion.
The company has been working to shift toward improved profitability after years in which growth took priority. Executives are also repositioning the platform around AI-powered customer engagement, aiming to incorporate greater automation and data-driven capabilities into the product set.
Separately, Twilio highlighted its ongoing commercial momentum with the stronger-than-expected top-line and profit metrics announced for the first quarter. Management cited demand for customer engagement and AI-driven services as factors behind the performance and the revised guidance.
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Summary
Twilio outperformed first-quarter expectations on revenue and adjusted EPS, raised quarterly and full-year revenue guidance for 2026, and lifted operating income and free cash flow targets. The company is prioritizing profitability and steering its platform toward AI-enhanced customer engagement. Shares rose 18% in extended trading following the results.