Twilio Stock Jumps 18% on Unprecedented Conversation Relay AI Demand
Twilio’s stock surged 18% in after-hours trading on Wednesday after the cloud communications company posted stronger-than-expected first-quarter results, crediting the explosive growth to what it calls unprecedented demand for its Conversation Relay AI function.
The San Francisco-based company reported revenue of $1.41 billion for the first quarter, up 20% from a year earlier and above Wall Street estimates of about $1.34 billion. Adjusted earnings per share of $1.50 also beat expectations of $1.27.
At the heart of the excitement is Twilio Conversation Relay, a product that lets developers build AI-powered voice agents for customer interactions. The company partnered with ElevenLabs, an AI audio research and deployment firm, to bring over 1,000 natural-sounding voices across 40 languages to the Conversation Relay platform, delivering low-latency, high-fidelity conversational experiences.
Twilio’s AI Bet Pays Off
The demand for Twilio Conversation Relay AI is showing up in real business wins. Cedar, the leading patient financial experience platform for healthcare providers, recently built its AI voice agent, Quora, using Conversation Relay and projects it will automate 30% of inbound calls by the end of 2025.
Other notable deals include Posh, an AI platform for financial institutions, which partnered with Twilio for scalable voice infrastructure using Conversation Relay, and Bland.ai, which signed a multi-year deal spanning messaging, voice, and software add-ons.
Riding the momentum, Twilio raised its full-year 2026 revenue growth forecast to 14%–15%, up from the prior guidance of 11.5%–12.5%, and lifted expectations for operating income and free cash flow to between $1.08 billion and $1.10 billion.
Twilio’s dollar-based net expansion rate climbed to 107% during the quarter, an improvement of five percentage points from the year-ago period a signal that existing customers are spending more on its growing suite of AI solutions.
The results mark a turning point for Twilio, which has spent years transitioning from a messaging utility into a full-scale AI-powered customer engagement platform. With Conversation Relay AI demand accelerating and enterprise deals scaling into seven figures, the market appears convinced the pivot is working.
