Summary: Needham has reaffirmed its Buy rating on Twilio (NYSE:TWLO) and set a $145.00 price target following the company’s fourth-quarter results. The firm pointed to a 12% increase in organic revenue in Q4, outpacing the mid-point of guidance, and singled out the company’s voice offerings and Voice AI as notable drivers of growth. Twilio also reported quarterly earnings and revenue that exceeded analyst expectations and issued initial guidance for 2026 alongside a fiscal 2027 operating income target.
Needham’s research note reiterates confidence in Twilio after quarterly figures that showed organic revenue rising 12% in Q4, above the mid-point guidance of 10%. The firm highlighted the voice segment as a meaningful contributor, with the voice business growing by the high teens over the year. Voice AI revenue expanded sharply, up 49% year-over-year, according to the same note.
On a reported basis, Twilio posted earnings per share of $1.33 for the fourth quarter of 2025, surpassing the $1.23 analysts had expected. Revenue for the quarter came in at $1.37 billion, ahead of the $1.32 billion projection. Those results contributed to Needham’s decision to maintain its Buy recommendation and the $145.00 target.
The $145.00 target sits alongside market analysis that places Twilio’s trading price at $110.41, with analyst targets across the brokerage community ranging from $100 to $185. Needham characterized the stock as undervalued in that context.
Looking ahead, Twilio provided initial guidance for fiscal 2026, forecasting 8.5% organic revenue growth. Needham noted that this figure could be conservative by several hundred basis points if the company executes strongly on its plans. The research note also emphasized an optimized go-to-market approach and solid performance from independent software vendor partners as supporting factors.
Twilio additionally set a newly initiated fiscal 2027 operating income target of $1.23 billion. Needham observed that this target represents 17% growth compared with the company’s fiscal 2025 guidance.
Key points
- Needham reaffirms Buy on Twilio with a $145.00 price target following Q4 results.
- Twilio reported 12% organic revenue growth in Q4, voice business growth in the high teens for the year, and Voice AI revenue up 49% year-over-year.
- Twilio beat expectations in Q4 with EPS of $1.33 and revenue of $1.37 billion; the company issued 2026 organic revenue guidance of 8.5% and a fiscal 2027 operating income target of $1.23 billion.
Sectors impacted
- Cloud communications and enterprise software
- Voice and AI-driven communications services
- Software distribution via ISV partner channels
Risks and uncertainties
- Execution risk - Needham notes the 2026 guidance of 8.5% could be conservative if execution is strong, implying that outcomes hinge on successful execution of the company’s plans; failure to execute could undermine upside.
- Concentration risk in key growth areas - Twilio’s near-term momentum is tied to its voice business, Voice AI, and ISV partner performance; underperformance in any of these areas could pressure revenue growth.
- Targets and timelines - The fiscal 2027 operating income target of $1.23 billion reflects a 17% increase versus fiscal 2025 guidance; meeting or missing this target introduces uncertainty for valuation and investor expectations.
Conclusion
Needham’s reaffirmation of a Buy rating and the $145.00 price target follows a quarter in which Twilio beat consensus EPS and revenue estimates and posted double-digit organic revenue growth. The firm points to an improving go-to-market posture and strong ISV partner results as amplifiers of growth, while noting that management’s 2026 guidance may be conservative if execution goes smoothly. Investors remain exposed to execution outcomes tied to voice, Voice AI, and partner channels as Twilio pursues its fiscal 2027 operating income goal.