📊 AI Stock Rating — Summary

Twilio (TWLO) generated $1.3 billion in revenue for Q3 2025, achieving a net income of $37.2 million, resulting in earnings per share (EPS) of $0.24. The company maintains a solid net margin of approximately 2.9%, and its free cash flow stands at $263.6 million. Year-over-year revenue growth remains strong, and Twilio has been focusing on operational efficiency, which is reflected in its EPS growth. Operating cash flow is robust, with no capital expenditures, highlighting the company's asset-light model. Twilio's balance sheet demonstrates financial soundness, with negative net debt indicating substantial cash reserves. With an analyst price target consensus of $143.22, there is potential upside in its stock valuation, suggesting positive market sentiments. The lack of debt repayments, stock repurchase, or dividends suggests Twilio is prioritizing reinvestment into business growth. The absence of dividends isn't a downside with a high-growth tech entity, especially considering its stock appreciation potential.

AI Score Breakdown

Revenue Growth — Score: 8/10

Twilio achieved solid revenue growth with $1.3 billion this quarter. This growth demonstrates strong demand for its services and indicates stability and scalability of operations.

Profitability — Score: 7/10

The company's operating margin is efficient, resulting in a net income of $37.2 million and EPS of $0.24, showcasing improvements in operational efficiency.

Cash Flow Quality — Score: 9/10

Free cash flow remains strong at $263.6 million due to excellent operating cash flow and zero capex. Maintained liquidity illustrates effective cash generation.

Leverage & Balance Sheet — Score: 9/10

Twilio maintains a healthy balance sheet with a substantial equity base and negative net debt, underscoring its financial resilience and capacity to fund growth.

Shareholder Returns — Score: 6/10

Despite no dividends or buybacks, strong market sentiment suggests value appreciation. Analyst price targets reaching up to $156 could indicate potential future upside.

Analyst Sentiment & Valuation — Score: 7/10

With a high analyst price target of $156 and a consensus of $143.22, Twilio seems positioned for value growth. Market sentiment and P/E ratios show balanced valuation relative to peers.

⚠ AI-generated — informational only, not financial advice.