Twilio raises FY2026 outlook after strong Q1 growth but stock seen overvalued, downgraded to hold.

Twilio reported strong growth in Q1 2026, driven by expanding multiproduct adoption, voice and messaging services, and over 100% year-on-year growth in Conversational Intelligence revenue. This led to a dollar-based net expansion rate of 114%, up 7 points from the previous year, prompting the company to raise its full-year 2026 guidance. Despite these positive fundamentals, the stock price has surged past previous resistance levels, leading analysts to view it as overvalued and recommend a hold rating. Investors are advised to wait for a better entry point around the $120 range for a safer investment margin.