Twilio raises annual revenue growth forecast on AI-driven demand, shares jump

April 30 (Reuters) - Twilio ‌raised its ​full-year ​forecast on Thursday and posted stronger-than-expected first-quarter results, signaling sustained demand for its cloud ‌communications tools as companies invest in customer engagement ⁠and AI-driven services.

The company's shares surged 18% in extended ‌trading.

Twilio, which provides messaging, voice ‌and email tools used by companies to communicate with customers, has been working to boost profitability ​after years of prioritizing growth.

The company has also been repositioning itself around AI-powered customer engagement, ⁠aiming to embed more automation and data-driven capabilities into its platform.

For 2026, ​Twilio raised its forecast for revenue growth to 14% to 15%, from 11.5% to ​12.5% previously. It also lifted ‌its expectations for operating income and free cash flow to between $1.08 billion and $1.10 ⁠billion.

The San Francisco-based company reported revenue of $1.41 billion for the first quarter, up 20% from a year earlier ⁠and above Wall Street estimates of about $1.34 billion, according to data ​compiled by LSEG.

Adjusted earnings per share of $1.50 also beat expectations of $1.27.

Twilio projected second-quarter revenue of $1.42 billion to $1.43 billion, ahead ‌of analysts' estimates, pointing to continued momentum in its core communications business.

The company ‌reported first-quarter net income of $90 million, or 57 cents ⁠per share, compared with $20 ‌million, or 12 ​cents per share, a year earlier.

(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj ‌Kalluvila)

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