Twilio hits highest revenue growth in 3 years, boosts AI-driven demand and profitability outlook.

Twilio reported its strongest revenue and gross profit growth in over three years, driven by increasing AI adoption that is expanding product use and average revenue per user. The company’s non-GAAP operating income rose 31% year-over-year, with free cash flow expected to exceed $1 billion by 2026. Twilio also improved capital allocation by reducing stock-based compensation to under 10% of revenue and returning $1 billion to shareholders through buybacks. These developments suggest a positive shift toward sustained profitability and potential stock value growth if new AI-related products gain traction.