Twilio Stock Surges After Strong Q2 Results

Twilio (ticker: TWLO) stock experienced a 6.6% increase to reach $62.24 in premarket trading following the company's impressive second-quarter results and improved full-year guidance.

William Blair analysts expressed positivity towards Twilio's execution towards near-term profitability in a report released on Wednesday. They remain optimistic about the potential for improved revenue and profitability over the next four to six quarters, rating the shares as Outperform.

However, RBC Capital Markets analysts adopted a less optimistic stance, rating the shares as Underperform with a price target of $50. They highlighted concerns about competition, AI positioning, and terminal margins, which were not addressed by Twilio's third-quarter revenue guidance.

Barclays and Bernstein also raised the price targets for Twilio, with Barclays setting it at $60, up from $50, and Bernstein at $68, up from $58.

Twilio's second-quarter adjusted earnings exceeded expectations, and the company raised its full-year guidance for adjusted operating income to a range of $350 million to $400 million. This marked an increase from the previous range of $275 million to $350 million.

Analysts had initially predicted $329 million, according to FactSet.