Twilio Inc (NYSE:TWLO | TWLO Price Prediction) just earned a strong endorsement from Bank of America, which skipped right over Neutral and delivered a rare double-upgrade, moving Twilio stock from Underperform to Buy. BofA also nearly doubled its price target, raising it from $110 to $190. For investors watching Twilio’s AI pivot, this signals a shift worth examining.
BofA’s core thesis is that Twilio will prove to be “one of the key infrastructure layers for AI-driven voice and messaging use cases,” a positioning that places the company in one of the fastest-growing areas in enterprise technology. The firm sees positive inflections in both Twilio’s strategic direction and underlying fundamentals, and the conviction behind skipping a rating level speaks for itself.
| Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
| TWLO | Twilio Inc | Bank of America | Double-Upgrade | Underperform | Buy | $110 | $190 |
The Analyst’s Case
BofA forecasts Twilio’s revenue growth accelerating from 9% in FY26 to 10% in FY28, a meaningful step-up reflecting growing confidence in Twilio’s AI infrastructure positioning. The firm views Twilio’s communications platform as foundational for the next generation of autonomous agents and AI-powered customer interactions. That’s a compelling thesis for a company already serving more than 402,000 active customer accounts across 180 countries.
The upgrade aligns with broader analyst momentum around Twilio. Jefferies also upgraded the stock to Buy with a $160 price target in early April 2026, and Truist Financial and Mizuho Securities both hold Buy ratings on the stock. BofA’s $190 target now sits at the high end of the Street.
Company Snapshot
Twilio operates a cloud communications platform letting developers embed voice, messaging, and identity capabilities into software applications. Full-year 2025 revenue came in at $5.067 billion, up 14% year over year, and the company returned to annual profitability with GAAP net income of $33.83 million versus a loss in the prior year. Free cash flow reached $945.43 million in 2025, a 44% increase year over year, with guidance pointing to $1.04 to $1.06 billion in FY2026.
CEO Khozema Shipchandler stated in the Q4 2025 earnings release: “Twilio is quickly becoming a foundational infrastructure layer in the age of AI.” That language maps directly onto BofA’s upgrade rationale, suggesting the market may finally be catching up to what management has been building.
Why the Move Matters Now
Twilio shares have risen 81% over the past year and trade around $151. The forward P/E ratio stands at 27x, which is far more reasonable than the trailing multiple and reflects growing confidence in Twilio’s profitability trajectory.
Notably, Twilio’s non-GAAP operating margin expanded to 19% in Q4 2025. That’s up from 17% in the prior year period, a trend BofA likely sees continuing.
What It Means for Your Portfolio
A double-upgrade from a major firm carries real weight, and the jump from $110 to $190 on the price target suggests BofA sees a fundamentally different risk-reward profile for Twilio. The AI infrastructure narrative is credible and backed by real financial progress, including margin expansion, free cash flow growth, and a broadening customer base.
That said, TD Cowen still holds a Hold rating with a $125 price target, a reminder that not all of Wall Street has made the same leap. If you believe AI-driven voice and messaging will become critical enterprise infrastructure and Twilio is positioned to capture that demand, the BofA upgrade gives you a well-reasoned bull case to consider. Cautious investors should watch for whether gross margin trends stabilize and organic revenue growth meets or exceeds the high end of FY2026 guidance.
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