-- Twilio (TWLO) is expected to report "solid" Q1 results, with revenue and earnings likely exceeding consensus estimates by 3% to 4% driven by "steady" sales execution and strong demand for artificial intelligence-powered products, Oppenheimer said in a note Monday.
Checks indicate stable or improving net expansion rate of about 109%, strong engagement with independent software vendors, and continued momentum in voice AI, which grew more than 60% year over year in Q4, the brokerage said.
Rising application-to-person messaging fees from carriers, including T-Mobile US (TMUS) and AT&T (T), are expected to have "no material disruption," with the company managing its gross profit dollars while potentially offsetting margin pressure, according to the note.
Twilio's full-year 2026 revenue growth guidance of 11.5% to 12.5% is "conservative," with opportunities from cross-selling, multi-product adoption and expanding AI offerings, the brokerage said.
Oppenheimer maintained an outperform rating on Twilio with a price target of $170.
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