Goldman Sachs Reveals Best AI Software Stocks: Twilio (TWLO), Braze, and Klaviyo

Key Takeaways

• Goldman Sachs has initiated coverage on three software companies—Twilio, Braze, and Klaviyo—with Buy ratings across the board.
• Twilio received a price target of $300, implying approximately 63% upside potential.
• Braze was assigned a $34 price target, representing roughly 62% upside from current levels.
• Klaviyo earned a $26 price target, the most aggressive of the three with approximately 93% upside potential.
• The investment firm believes these companies are well-positioned to capitalize on increasing enterprise AI adoption.

Goldman Sachs has initiated research coverage on three software companies that the firm believes will thrive in the emerging artificial intelligence landscape. The Wall Street giant assigned Buy ratings to Twilio, Braze, and Klaviyo, with analyst Callie Valenti detailing distinct investment theses for each company.

These three firms operate in complementary but distinct segments of the enterprise software market. Twilio specializes in customer communication platforms. Braze delivers customer engagement and marketing automation solutions. Klaviyo provides data-driven marketing tools primarily for e-commerce businesses.

Twilio Receives Highest Conviction Rating

Goldman Sachs assigned Twilio a price target of $300, suggesting potential gains of roughly 63% from its current trading level.

Twilio Inc., TWLO

Twilio operates a cloud-based communication platform enabling businesses to connect with customers via text messaging, voice calls, and additional channels. Goldman emphasized that even as artificial intelligence agents proliferate, the companies developing these technologies will continue requiring robust communication infrastructure.

The firm specifically called attention to Twilio’s Voice segment, which posted 20% year-over-year expansion in the most recent quarter. The self-service division achieved 28% growth in Q4 2025. Goldman also noted that approximately half of the companies featured on Forbes’ AI 50 list were utilizing Twilio’s services as of September 2024.

Twilio delivered record revenue growth alongside expanding profit margins in its Q1 2026 earnings report. Management characterized the company’s transformation as positioning it to become the leading platform for AI-powered customer interactions.

Braze And Klaviyo Complete The Trio

Braze earned a price target of $34 from Goldman Sachs, suggesting approximately 62% appreciation potential. The firm’s analysis indicates Braze is successfully capturing market share from legacy marketing automation providers as enterprises modernize their technology infrastructure.

Goldman projects that Braze will achieve operating margins of 20% by fiscal year 2029. The firm attributes this margin expansion outlook to increasingly flexible pricing structures and an expanding product portfolio.

Braze recently delivered quarterly financial results that exceeded Wall Street’s revenue projections. Following what marked its fourth consecutive quarter of accelerating top-line growth, management elevated its full-year outlook.

Klaviyo received the most bullish price target relative to its current valuation, with Goldman’s $26 target implying approximately 93% upside potential. The stock has declined roughly 30% following its first-quarter earnings release, which coincided with the announcement of its CFO’s departure and mixed quarterly performance.

Goldman’s analysis suggests these short-term headwinds don’t accurately represent the company’s fundamental business momentum. The firm emphasized that Klaviyo continues delivering revenue growth in the high-20% range.

The investment bank views Klaviyo’s deep integration with Shopify as a competitive advantage rather than merely a concentration risk. Goldman anticipates Klaviyo will sustain strong growth within the Shopify merchant base while simultaneously expanding into enterprise clients and international territories.

Klaviyo’s Q1 2026 financial results exceeded analyst expectations for both revenue and profitability metrics. Management subsequently raised forward guidance in response to the strong performance.

Goldman Sachs noted that investors should monitor the sustainability of AI-driven demand for each platform moving forward. The firm also identified gross profit dollar growth and margin trajectory as critical metrics to track in upcoming reporting periods.

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