TWLO vs WDAY

Twilio reported strong Q4 and full-year 2025 results with revenue of $1.366B in Q4 (+14% Y/Y) and FY revenue of $5.067B (+14% Y/Y), improved margins, and materially higher free cash flow. Management emphasizes execution and positions Twilio as a "foundational infrastructure layer in the age of AI," but the release contains no specific branded AI products, developer tools, model partnerships, or technical primitives. Guidance includes Q1 2026 revenue of $1.335–$1.345B and non-GAAP EPS $1.21–$1.26, and FY26 growth targets (reported growth 11.5%–12.5%) along with non-GAAP operating income and free cash flow ranges. Key risks include carrier A2P fee impacts, macro uncertainty, and standard forward-looking contingencies.

Workday positions itself as an "enterprise AI platform" and is actively shipping and monetizing AI capabilities: Sana Core and Sana Enterprise reached GA; Paradox Conversational ATS is available through Workday for conversational recruiting; Workday acquired Pipedream to provide integration for AI agents; and Workday launched an AI-powered Deployment Agent and a Workday EU Sovereign Cloud. Management emphasizes prioritized investment in an "agentic AI roadmap," delivered 1.7 billion AI actions in fiscal 2026, and expanded AI-related partnerships (Anthropic, Google BigQuery). Financially, fiscal 2026 total revenues were $9.552B (up 13.1% YoY), non-GAAP operating income was $2.824B, net income $693M, and free cash flow $2.777B. Guidance includes Q1 FY2027 subscription revenue of $2.335B and FY2027 subscription revenue of $9.925B–$9.950B; management also guided ~30% non-GAAP operating margin for FY2027 and reaffirmed investments in its agentic AI roadmap.