Twilio (TWLO) shares are surging 8.64% in pre-market trading on Friday, following a series of positive developments that have boosted investor confidence in the cloud communications platform provider. The company's impressive third-quarter earnings report, raised full-year guidance, and a wave of analyst upgrades have contributed to the stock's significant uptick.

Twilio reported robust third-quarter results, with revenue reaching $1.3 billion, marking a 15% year-over-year increase and surpassing analyst expectations of $1.25 billion. The company's adjusted earnings per share (EPS) of $1.25 also beat the consensus estimate of $1.08. CEO Khozema Shipchandler highlighted "broad-based strength across customer segments, ranging from startups to enterprises to ISVs" as a key driver of the revenue increase.

Adding to the positive sentiment, Twilio raised its full-year 2025 revenue growth forecast to 12.4%-12.6%, up from the previous projection of 10%-11%. The company also increased its non-GAAP income from operations guidance and free cash flow projection. Furthermore, Twilio announced plans to acquire Stytch, Inc., an identity platform for AI agents, expected to close in mid-November, potentially contributing to future growth prospects. In response to these developments, several analysts have upgraded their ratings and increased price targets for Twilio, with Needham raising its target to $145 from $125, and JP Morgan increasing its target to $145 from $140, further fueling the stock's pre-market rally.