New York, March 28, 2026, 11:07 AM EDT
Twilio dropped almost 5% on Friday, lagging behind the Nasdaq, as jitters over oil prices and inflation—fueled by the Middle East conflict—weighed on tech and communications names. The stock was last seen at $119.99, off 4.8% from Thursday’s close. The Nasdaq wrapped up 2.15% lower.
The timing of the drop stings: just weeks ago, Twilio reported a solid fourth quarter and outlined ambitions for double-digit revenue growth by 2026. Adding to that, the company recently brought ex-Workday co-president Doug Robinson onto its board and announced broader direct carrier links in North America. Twilio pitches both steps as moves toward sharper execution and more robust infrastructure.
Fresh stats from Metrigy landed Friday, and they weren’t exactly reassuring. The CPaaS market—communications-platform-as-a-service, that’s the layer helping companies wire messaging and voice into their apps—grew just 4.2% to hit $14.9 billion in 2025. Twilio, meanwhile, commanded the biggest slice with a 25.4% share.
Infobip, Sinch, Alibaba, and Vonage landed on Metrigy’s list of top vendors. Bandwidth, though, saw the sharpest growth. “Messaging is still the top CPaaS service,” said Diane Myers, senior research director at Metrigy, who’s calling for just steady single-digit expansion through 2030. Metrigy
Twilio on Tuesday pointed to Robinson’s experience at Workday, where he scaled global sales, as a key asset for the company’s expansion efforts and customer retention push. CEO Khozema Shipchandler highlighted Robinson’s “rigor and discipline,” qualities Twilio wants as it leans harder into AI-powered customer engagement. Twilio
Earlier this week, the company announced it now stands alone among CPaaS providers with direct 10DLC and toll-free access on every major U.S. and Canadian carrier. 10DLC—those 10-digit long codes businesses rely on for application-to-person texting—lets firms get local numbers for messaging. According to Twilio, this setup will shave time off onboarding and boost reliability. Kathryn Murphy, who heads up communications products as senior VP at Twilio, said customers should see stronger, more trusted carrier connections. Raul Castanon at 451 Research described these direct links as “the price of admission” for enterprises sending outbound messages. Twilio
Twilio’s fourth-quarter revenue came in at $1.37 billion, up 14% year-over-year, with full-year revenue also rising 14% to $5.07 billion. The company’s non-GAAP operating income hit $256 million for the quarter. Free cash flow for 2025 landed at $945.4 million, and Twilio’s active customer accounts climbed past 402,000.
Twilio is forecasting first-quarter revenue between $1.335 billion and $1.345 billion, and sees full-year 2026 reported revenue climbing 11.5% to 12.5%. Non-GAAP operating income for the year is pegged in the $1.04 billion to $1.06 billion range. Those numbers leave investors with a straightforward question: are stronger margins and steadier growth enough to keep pushing the shares higher?
Still, the picture isn’t settled. Reuters said Friday that stocks slipped and oil climbed, with the Middle East conflict weighing on sentiment. Looking ahead, Metrigy projects CPaaS will grow just 2.7% annually between 2025 and 2030. For Twilio, that means grabbing more market share could be necessary just to keep pace against a backdrop of weaker spending.
Right now, it’s the broader market mood driving trades, not individual company headlines. On Thursday, the Nasdaq slipped into correction territory—down at least 10% from a recent peak—and tacked on more losses Friday. Tough for any stock to resist that kind of pressure, even with new products or fresh market-share wins, as investors trim tech and communications positions.
