Twilio's (TWLO) AI opportunity is "real and building," supporting a bullish outlook for shares, UBS Securities said Tuesday in a report.

The company is well positioned to provide the communication backbone for AI-powered interactions, UBS said, citing "constructive" feedback from a survey of more than 10 customers.

More enterprise clients are turning to Twilio to power AI workflows, including a Fortune 50 technology company and a major Canadian financial firm, the report said. Early AI deployments are already lifting spending by 10% to 30%, with larger rollouts potentially boosting usage by more than 50% to as much as fivefold over the next few years, UBS said.

Twilio also appears to have an early lead in AI agent ecosystems that rely on multiple models and require a unified, multichannel communications layer, positioning the company to capture additional share, UBS said.

UBS raised its 2026 revenue growth estimate to about 11% from 9% and trimmed its gross margin forecast to 49% from 50% to 51%.

UBS maintained its buy rating on Twilio stock with a price target of $150.

Price: 119.94, Change: +0.87, Percent Change: +0.73