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Research Alert: CFRA Maintains A Buy Rating On Twilio

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target to $259 from $211 on 35x our 2027 EPS estimate, reflecting TWLO's transformation into an AI communications infrastructure provider with rapidly improving growth and profitability metrics. We increase our 2026 and 2027 EPS views to $5.99 and $7.39, up from $5.92 and $7.02, respectively. This is driven by accelerating AI demand and ongoing margin expansion. We believe the premium valuation is warranted given the company's positioning as essential communications plumbing for AI agents and inflecting business momentum. Recent results reinforce this trajectory, with Voice revenue growth accelerating to 20% in Q1 (the highest in years), organic revenue growth reaching 16%, and DBNER expanding to 114%, trends we believe are sustainable through 2027 as AI-native companies scale operations and industrywide agentic AI adoption continues. The company's profitability inflection is equally compelling, with non-GAAP operating margins expanding to 19.8% in Q1, pushing toward the 21%-22% target by 2027.

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