Twilio: Consistent Growth And Rising Cash Flow

Gary Alexander33.31K FollowersFollow5ShareSavePlay(7min)CommentsSummaryTwilio (TWLO) delivered a Q4 beat-and-raise and issued a robust FY26 growth outlook, yet shares remain down over 20% year-over-year.Despite skepticism around software stocks, TWLO's stable recurring revenue and healthy cash flow multiples support a continued buy rating.TWLO guides to 11.5-12.5% FY26 revenue growth and 18.5% FCF margin, trading at 14.5x EV/FCF and 2.7x EV/revenue.I prioritize TWLO for its strong net retention, ingrained software, and attractive valuation amid the sector-wide correction. jaanalisette/iStock Editorial via Getty Images 2026 is turning out to be an apocalyptic year for software stocks, as investors juggle the question of whether or not AI and vibe coding will be able to break the bulwark of enterprise software'sThis article was written byGary Alexander33.31K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of TWLO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.