Twilio (TWLO) just held its annual SIGNAL customer conference. Bank of America Securities sent two analysts. They came back more convinced than before.
That conviction now has a price attached to it: $225. And the reasoning behind it goes well beyond a routine conference recap.
What BofA maintained and why
Bank of America Securities analysts Koji Ikeda, CFA and George McGreehan maintained their Buy rating and $225 price objective on Twilio on May 7 after attending the company’s SIGNAL customer conference and investor session, BofA Securities noted in a research report shared with TheStreet.
The stock was trading at $191.40 at the time of the note, giving the company a market cap of approximately $29.3 billion, according to Yahoo Finance.
The note’s headline is straightforward: BofA came away “incrementally positive.” The conference was well attended, newly announced products were well received by customers, and management’s tone on the redesigned console’s potential to drive broader platform adoption was constructive.
Four new AI products that caught BofA’s attention at SIGNAL
The most substantive part of BofA’s note focuses on four new capabilities Twilio introduced at SIGNAL: Conversation Memory, Conversation Intelligence, Conversation Orchestrator, and Agent Connect.
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In practical terms, these tools are designed to give Twilio customers a more complete, context-rich view of end users across communication channels. They also help transition conversations between AI agents and human agents while gathering insights from all parts of an interaction.
BofA’s assessment is that these features strengthen Twilio’s value proposition and competitive differentiation, making the platform harder to replace once embedded in a customer’s workflow.
Voice AI stood out as a particular area of momentum.
BofA noted strong customer interest across the spectrum from startups to large enterprises, all actively working through how Voice AI could fit their operations. The bank views this as a positive signal for expansion activity over the next several quarters.
Why the unified console matters for multi-product growth
Alongside the new AI products, Twilio is rolling out a redesigned console that unifies Twilio, SendGrid, and Segment under a single login with unified billing. Customers will also receive trial credits designed to lower the friction of testing new use cases, BofA Securities confirmed.
The business logic behind this is straightforward. Lower friction means more experimentation. More experimentation means a more natural path to multi-product adoption. And multi-product adoption is exactly the metric Twilio needs to keep moving.
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The data already supports the direction. Multi-product customer count growth accelerated to 29% year-over-year in Q1 2026, up from 26% in Q4 2025, BofA Securities noted added.
The new console is designed to push that number further by making it easier for customers who already use one product, such as Segment or Flex, to explore and adopt others.
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The financial estimates and valuation case behind the $225 target
BofA’s model shows steady improvement through 2028. Sales are expected to grow from $5.776 billion in 2026 to $7.038 billion by 2028. Free cash flow rises from $1.155 billion to $1.554 billion over the same period, with operating margins expanding from 18.9% to 22.7%, BofA Securities noted in the May 7 note.
The $225 price objective is based on 26.6x EV/CY27E free cash flow, above the infrastructure software peer group at 19.4x.
BofA argues that premium is justified by Twilio’s accelerating growth profile and improving profitability.
Key figures from BofA’s Twilio note dated May 7, 2026:
- Rating: Buy, price objective $225, stock at $191.40, market cap approximately $29.3 billion
- 52-week range: $91.84 to $200.00
- Multi-product customer count growth: 29% year-over-year in Q1 2026, accelerating from 26% in Q4 2025
- FY2026 free cash flow estimate: $1.155 billion; rising to $1.554 billion by 2028
- FY2026 operating margin estimate: 18.9%, expanding to 22.7% by 2028
- Valuation: 26.6x EV/CY27E FCF versus infrastructure software peer group at 19.4x
- Upside risks: faster organic revenue reacceleration, macro recovery driving higher usage, and greater software revenue mix
Source: Bank of America.
The risks BofA is watching ahead of next earnings
The note flags specific downside risks: increased competition from larger platform vendors, price pressure, macro deterioration, challenges monetizing the developer base, gross margin erosion, and execution missteps.
Those risks matter because Twilio is still a transition story. The company is working to shift its revenue mix toward higher-margin software products. The new console and AI capabilities are part of that shift, but investors need to see momentum translate into sustained revenue growth, not just conference enthusiasm.
For now, BofA’s message is straightforward. SIGNAL gave the firm more confidence that the platform is strengthening, Voice AI demand is real, and multi-product adoption is building. The $225 target stays in place.
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