Bandwidth's 2026 State of Messaging Report Reveals Biggest Messaging Transformation in a Decade
Rhea-AI Summary
Bandwidth (NASDAQ: BAND) released its 2026 State of Messaging Report on Jan 22, 2026, finding the largest shift in business messaging in a decade driven by RCS, AI and trust.
Key data: RCS device coverage is 96%; 59% of businesses plan to deploy RCS but have not launched; the report forecasts 80% of enterprise apps will be multimodal by 2030. The report highlights SMS remaining as a cost‑efficient backbone, a move toward branded/verified messaging to rebuild trust, and deliverability as the top decision factor for messaging providers.
Positive
- RCS device coverage at 96%
- 80% of enterprise apps forecast to be multimodal by 2030
Negative
- 59% of businesses plan RCS deployments but have not launched
- Rising consumer skepticism of traditional SMS links risks engagement
News Market Reaction
On the day this news was published, BAND gained 1.25%, reflecting a mild positive market reaction. Argus tracked a peak move of +14.9% during that session. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $6M to the company's valuation, bringing the market cap to $462M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BAND is up 3.03% while sector peers are mixed: CCSI up 2.4%, DAVA up 2.01%, but ALLT, XNET and BLZE are down. Only one peer (RPAY, +7.65%) appeared in the momentum scanner, indicating today’s setup looks more stock-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Q3 2025 earnings | Positive | -3.9% | Reported Q3 revenue and raised full‑year Adjusted EBITDA outlook. |
| Oct 08 | Earnings call notice | Neutral | +2.6% | Announced timing and details for upcoming Q3 2025 earnings call. |
| Sep 30 | AI award win | Positive | -4.5% | Recognized by Ally Financial for AI-enabled cloud transformation work. |
| Sep 24 | AI platform expansion | Positive | +0.1% | Added support for OpenAI’s Realtime API to power AI voice agents. |
| Sep 16 | RCS partnership | Positive | -2.5% | Partnered with Out There Media to launch RCS messaging for brands. |
Recent positive operational and partnership news has frequently coincided with flat or negative next-day price moves, suggesting a pattern of muted or contrarian reactions to good headlines.
Over the last few months, Bandwidth has reported Q3 2025 results with $192M revenue and raised full‑year Adjusted EBITDA outlook, yet the stock fell 3.94% afterward. Multiple AI-related announcements and an RCS partnership with Out There Media were generally positive but saw mixed to negative price reactions (down 4.47% and 2.48%, flat on another). Against this backdrop, today’s messaging‑strategy report reinforces Bandwidth’s focus on AI, RCS and trust-driven communications rather than introducing new financial data.
Market Pulse Summary
This announcement highlights Bandwidth’s focus on RCS, AI-driven multimodal messaging and trust, backed by surveys of over 1,000 enterprise leaders and 500 consumers. It builds on prior AI and RCS initiatives from September–October 2025, framing Bandwidth as a strategic partner in richer, verified messaging. Investors may watch how these themes translate into revenue growth, margins, and adoption of RCS-based and AI-enhanced services in future earnings updates.
Key Terms
ai technical
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AI-generated analysis. Not financial advice.
RCS, AI and Trust are driving a critical shift from simple, 2-way SMS to rich customer conversations
Titled "The Future is Conversational," Bandwidth's 2026 report is an executive guide for brand leaders to understand what's changing, what's next and how to build modern messaging strategies that deliver richer, smarter and more secure customer experiences. Findings are based on a survey of more than 1,000 enterprise messaging leaders and 500 consumers, combined with proprietary research and insights from Bandwidth's industry experts.
"Business messaging is expected to evolve faster than ever in 2026. To stay competitive, enterprises are deploying richer channels and AI to engage customers where they are—fluid, fast, and woven into the way they live their lives," said Tim Sherwood, Bandwidth's Senior Vice President and General Manager of Messaging. "Our new report helps brand leaders get current on the latest trends and take action to future-proof their messaging strategies for competitive advantage."
Five key insights from Bandwidth's 2026 State of Messaging Report include:
1. The "RCS Gap" is a Massive Opportunity
While RCS device coverage has reached 96 percent, 59 percent of businesses surveyed are currently planning to deploy RCS but have not yet launched. Early adopters who bridge this gap now will set the benchmarks for customer engagement.
2. AI + Messaging = Multimodal Conversations
By 2030, 80 percent of enterprise applications will be multimodal, blending voice, text and visual content seamlessly. The report shows how RCS and AI-driven interactive messaging are emerging as preferred ways to deliver these experiences.
3. SMS Remains the Backbone
Despite surging RCS adoption, SMS continues to deliver cost-efficient, high-volume reach. To maximize ROI, savvy brands are orchestrating a mix of short codes, toll-free, 10DLC and RCS—amplified by AI—to modernize and personalize the customer experience.
4. Trust is the New Differentiator
With increasing consumer skepticism toward traditional SMS links, the report notes how enterprises are shifting toward branded, verified messaging to rebuild engagement and confidence. RCS enables secure features like sender verification, trusted icons and branded interactions.
5. Deliverability is Mission-Critical
The report reinforces that message deliverability remains the top decision factor when choosing a messaging provider, outweighing cost or features. Bandwidth's advanced tools for campaign registration and delivery insights were built to deliver on this enterprise priority.
Download the Report
Bandwidth supports some of the world's most demanding brands across retail, e-commerce, financial services, healthcare, tech and more. Stay ahead of the messaging curve by downloading Bandwidth's 2026 State of Messaging Report now.
About Bandwidth Inc.
Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 percent of global GDP, are trusted by all the leaders in unified communications and cloud contact centers–including Amazon Web Services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–as well as Global 2000 enterprises and SaaS builders like Docusign, Uber and Yosi Health. As a founder of the cloud communications revolution, we are the first and only global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, owner-operated network and broad regulatory experience. Our award-winning support teams help businesses around the world transform their communications every day. For more information, visit Bandwidth.com.
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SOURCE Bandwidth Inc.
FAQ
What did Bandwidth announce in the 2026 State of Messaging Report (BAND) on Jan 22, 2026?
How widespread is RCS device coverage according to Bandwidth's 2026 report?
What risk does Bandwidth identify for businesses delaying RCS (BAND)?
What does Bandwidth forecast about multimodal enterprise applications by 2030?
What role does SMS play according to Bandwidth's 2026 State of Messaging Report?
Why is deliverability important when choosing a messaging provider (BAND)?
