Is Twilio (TWLO) One of the Best Enterprise Software Stocks to Buy?

Twilio Inc. (NYSE:TWLO) is one of the best enterprise software stocks to buy right now. On April 30, Twilio reported a significant milestone in Q1 2026, with revenue reaching $1.41 billion, a 20% increase year-over-year. This performance represents the company’s highest revenue and gross profit growth rates in over 3 years, with organic revenue growing 16%. GAAP income from operations saw a rise to $107.7 million, while non-GAAP income from operations grew 31% to $278.9 million.

The company’s dollar-based net expansion rate improved to 114%, up from 107% in the previous year, reflecting stronger customer retention and growth. Twilio also continued its aggressive capital return strategy, repurchasing $253.4 million of its common stock during the quarter. To date, the company has utilized ~$1.1 billion of its $2.0 billion share repurchase authorization initiated in early 2025.

Following the strong start to the year, Twilio Inc. (NYSE:TWLO) raised its full-year 2026 guidance. The company now expects reported revenue growth of 14% to 15% and has increased its non-GAAP income from operations and free cash flow projections to a range of $1.08 to $1.10 billion. For Q2, Twilio anticipates revenue between $1.42 and $1.43 billion as it continues to position itself as a foundational infrastructure layer for AI-driven customer engagement.

Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service/CPaaS company.

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