TWLO Stock Soars 20% Premarket On Strong Guidance In Another Signal Of Software Strength

• Twilio beat Q1 revenue and profit targets and raised its 2026 forecasts.
• After upbeat reports from Microsoft and Atlassian, Twilio’s strong performance signals healthy software demand.
• Stocktwits sentiment for TWLO shifted to ‘extremely bullish’ from ‘neutral.’

Twilio, Inc. shares surged 20% in early premarket trading on Friday, after the enterprise communication software company reported upbeat first-quarter results and raised its guidance for the year.

For fiscal year 2026, Twilio raised its revenue growth forecast to 14% to 15% from 11.5% to 12.5% previously, and adjusted income from operations to $1.08 billion to $1.10 billion, up from $1.04 billion to $1.06 billion previously.

The forecast raise came after a strong quarter. Revenue rose 21% to $1.41 billion, beating analysts' estimate of $1.34 billion. Adjusted profit increased to $1.50 per share, up from $1.14 a year earlier, and higher than expectations of $1.27.

Twilio reported key customer wins, including Grupo ProTG, one of Mexico’s leading insurance brokers, and AI platforms such as Posh and Bland.ai. The company’s revenue and profit forecasts for the current quarter were also higher than analysts’ projections.

After strong results from Atlassian Corp. and Microsoft, Twilio’s upbeat report highlights renewed momentum in the software market, which had been under pressure amid fears of AI disruption.

Microsoft reported quarterly revenue and cloud sales above market expectations; Atlassion beat quarterly top- and bottom-line expectations.

Record Revenue, Profit

“Q1 was a milestone quarter for Twilio, marked by our highest revenue and gross profit growth rates in more than three years,” CEO Khozema Shipchandler said.

“Twilio’s performance is the result of a multi-year, companywide evolution that fundamentally transformed Twilio’s innovation velocity, GTM efficiency, and financial rigor and has led us to become a foundational infrastructure layer in the era of AI.”

Retail’s View On TWLO Turns Bullish

On Stocktwits, the retail sentiment for TWLO flipped to ‘extremely bullish’ early Friday from ‘neutral’ the previous day. 

“This isn’t a marginal beat, it’s a ‘market has to re-read the story’ type of print,” a trader wrote. “From a trading desk lens, big beats like this usually force a reset in expectations: growth stability, margin trajectory, and forward demand visibility all get re-priced at once.”

As of their last close, TWLO shares are up 4% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.