Twilio Inc. (TWLO) shares surged 16.84% in after-hours trading on Thursday, following the release of the company's first-quarter financial results.

The significant price movement was driven by Twilio reporting better-than-expected earnings and revenue for Q1 2026. The company posted adjusted earnings per share of $1.50, surpassing the analyst consensus estimate of $1.27. Revenue came in at approximately $1.41 billion, also beating expectations of around $1.34 billion and representing a 20% year-over-year increase.

Furthermore, Twilio raised its full-year revenue growth outlook to 14%-15% from the previous range of 11.5%-12.5%. The company also provided second-quarter revenue guidance of $1.42 billion to $1.43 billion, which exceeds analyst estimates. Management attributed the strong performance to sustained demand for its cloud communications tools, including AI-driven customer engagement services, and cited it as a "milestone quarter."