ServiceTitan, Inc. provides an end-to-end cloud-based software platform in the United States, Armenia, and Canada. Its platform connects and manages business workflows such as advertising, job scheduling and management, dispatching, estimates and invoices, and payment processing. The company offers ServiceTitan for contractors, FieldRoutes pest control software, and Aspire business management software for the landscape and clean industries, along with FinTech products including payment processing and third-party financing. It serves industries such as HVAC, plumbing, electrical, roofing, landscaping, pest control, and others. Formerly known as Linxlogic, Inc., it changed its name to ServiceTitan, Inc. in June 2014, was incorporated in 2007, and is based in Glendale, California.
ServiceTitan's Max AI adoption accelerates, but near-term revenue guidance spooks investors
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Max AI adoption more than doubles, boosting demand ServiceTitan's Max software, which uses AI to automate jobs, more than doubled its adoption last quarter. Early users saw big gains in booking and closing jobs. This shows strong demand for the product, which should lift future revenue and TTAN's stock.
This is a new positive demand signal that directly supports the growth story.
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Q3 revenue guidance misses, stock plunges ServiceTitan's guidance for current-quarter revenue came in slightly below analyst forecasts, sending shares down 19% after hours and over 30% the next day. The miss is due to slower transaction growth and revenue timing from Max, which spooked investors despite a Q2 beat.
This is the main negative event that drove the stock down sharply this period.
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Full-year revenue and profit outlook raised Along with the Q3 miss, ServiceTitan raised its full-year revenue and operating income guidance, citing accelerating Max adoption. The company now expects over 700 Max locations by year-end. This shows underlying business strength and supports a higher stock price over time.
This positive guidance revision provides a counterweight to the negative Q3 outlook.
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Needham names TTAN a top SaaS pick After a market selloff, Needham analyst Scott Berg named ServiceTitan a top pick, highlighting the Max AI narrative as a revenue driver into 2027. This endorsement from a respected analyst can boost investor confidence and attract buyers.
This is a new analyst endorsement that could positively influence sentiment and demand for the stock.
Q3 2026
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ServiceTitan's Max AI adoption accelerates, but near-term revenue guidance spooks investors
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Max AI adoption more than doubles, boosting demand ServiceTitan's Max software, which uses AI to automate jobs, more than doubled its adoption last quarter. Early users saw big gains in booking and closing jobs. This shows strong demand for the product, which should lift future revenue and TTAN's stock.
This is a new positive demand signal that directly supports the growth story.
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Q3 revenue guidance misses, stock plunges ServiceTitan's guidance for current-quarter revenue came in slightly below analyst forecasts, sending shares down 19% after hours and over 30% the next day. The miss is due to slower transaction growth and revenue timing from Max, which spooked investors despite a Q2 beat.
This is the main negative event that drove the stock down sharply this period.
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Full-year revenue and profit outlook raised Along with the Q3 miss, ServiceTitan raised its full-year revenue and operating income guidance, citing accelerating Max adoption. The company now expects over 700 Max locations by year-end. This shows underlying business strength and supports a higher stock price over time.
This positive guidance revision provides a counterweight to the negative Q3 outlook.
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Needham names TTAN a top SaaS pick After a market selloff, Needham analyst Scott Berg named ServiceTitan a top pick, highlighting the Max AI narrative as a revenue driver into 2027. This endorsement from a respected analyst can boost investor confidence and attract buyers.
This is a new analyst endorsement that could positively influence sentiment and demand for the stock.
News & notes movingTTAN
United States
Artificial Intelligence▲
Needham Names BRZE, NAVN, TTAN as Top SaaS Picks After Meta Selloff
Needham analyst Scott Berg named Braze, Navan, and ServiceTitan as his top end-of-year picks in the SaaS sector following a market selloff triggered by Meta's Enterprise Platform announcement. Berg said the new offering does not directly compete with enterprise software vendors in his coverage universe, viewing it as the final step in Meta's year-long shift from consumer AI to enterprise AI. He expects the platform to compete with frontier model vendors like Anthropic and OpenAI for parts of the UI layer or personal productivity agents rather than full-blown enterprise software, likely at a lower price point, with possible expansion into cloud hyperscale computing to challenge AWS, Azure, or GCP. On Braze, Berg sees a one-quarter growth slowdown as comp and timing issues rather than a demand slowdown; on Navan, he sees a favorable third-quarter setup as demand trends remain high; and on ServiceTitan, he leans into the Max AI narrative as a revenue driver into calendar year 2027.
ServiceTitan Wins Canopy Roofing Deal as Platform Standardizes Operations
Canopy Services is standardizing core functions across its growing portfolio of roofing brands on ServiceTitan Inc.'s end-to-end roofing platform, a single-customer proof point for the software vendor's push into the roofing vertical. Since adoption, Canopy has reported improvement in four key business metrics: average ticket size, close rates, cancellation rates, and call center booking rates. ServiceTitan's General Manager of Exteriors, Nina Katsman, said roofing businesses need technology that can support operational complexity without slowing them down. The company's AI-native offering, Max, connects and automates workflows across lead generation, booking, dispatch, field execution, and invoicing; management said call booking rates are 500 basis points higher for enterprises using Max, and close rates are more than 1,000 basis points higher. The article cautions that Canopy is just one customer success story, making broader roofing adoption hard to measure, and notes hedge fund ownership of the stock fell from 44 funds in Q1 2026 to 38 funds in the following quarter, with short interest at 8.77%.
Cloud & Digital Infrastructure › Vertical SaaS Competition
Artificial Intelligence › AI Applications & Copilots Competition
TTAN · Demand · Positive ServiceTitan won a deal to standardize Canopy Services' roofing brands on its platform, a concrete customer win for its roofing vertical
TTAN · Capital · Negative Hedge fund ownership of ServiceTitan fell from 44 funds to 38 and short interest sits at 8.77%
Canopy Services, LLC · Technology · Positive Canopy Services standardized its roofing operations on ServiceTitan's platform and reported improved ticket size, close rates, cancellations, and booking rates
ServiceTitan Q2 Revenue Jumps 21% as Max AI Adoption Accelerates
ServiceTitan reported 21% year-over-year revenue growth in Q2 FY2027 to $292.8 million, beating analyst expectations of $285.9 million, as adoption of its Max operating system emerged as a key growth driver. Subscription revenue rose 22% to $212.4 million and usage revenue climbed 24% to $72.1 million, while non-GAAP operating income reached $44.4 million, lifting the margin to 15.2% from 12.1% a year earlier, and free cash flow rose 47% to $50.5 million. The company surpassed its goal of doubling Max-enrolled locations in the quarter and expects over 700 enrolled locations by the end of the fiscal year, with Virtual Agent revenue and call volume more than doubling sequentially and over 30 agentic capabilities now native to Max. ServiceTitan guided FY 2027 revenue to between $1.139 billion and $1.144 billion and non-GAAP operating income to between $152 million and $154 million, though it flagged $2 million to $3 million of subscription-revenue headwinds in the second half from Max revenue-recognition timing and about $2 million of professional-services impact from waived onboarding fees. TD Cowen cut its price target to $100 from $125 while maintaining a Buy rating, noting that gross transaction value rose 17% to $26.8 billion, roughly 200 basis points below recent quarters, and that Q3 revenue guidance of $285 million to $287 million came in marginally below analyst expectations.
Artificial Intelligence › AI Applications & Copilots Demand
TTAN · Capital · Positive Q2 revenue rose 21% to $292.8M, beating estimates, with margin up to 15.2% and FCF up 47%
TTAN · Demand · Positive Max adoption accelerated, surpassing the goal of doubling Max-enrolled locations with Virtual Agent revenue and call volume more than doubling sequentially
Midday Movers: Meta Rises, Casey's Falls, Signet Jumps
In midday trading, several stocks made notable moves. Centerspace jumped over 8% after announcing an all-stock merger with Independence Realty Trust, creating a residential REIT with an enterprise value of $8.1 billion, with Centerspace shareholders receiving about 3.8 shares of IRT common stock per share. Academy Sports and Outdoors gained 8% after lifting its adjusted earnings outlook for fiscal 2027 to $6.50-$6.90 per share, above the prior range and the FactSet consensus of $6.43. Meta Platforms rose 6% following the unveiling of a personal AI agent app. Mission Produce popped 4% after beating FactSet expectations for both earnings and revenue in its fiscal third quarter. Apple slipped 1% ahead of an expected iPhone announcement. Casey's General Stores dropped over 15% despite beating earnings and revenue estimates, due to a 0.3% decline in fuel sales and slightly lower-than-expected growth in prepared food and beverage sales. Signet Jewelers surged 19% after reporting adjusted earnings of $2.19 per share, beating the FactSet estimate of $1.74, and raising full-year guidance. ServiceTitan fell over 30% after its third-quarter revenue guidance missed estimates, despite beating second-quarter revenue at $292.8 million versus $285.9 million expected. Braze dropped 19% on a revenue miss, though it beat on earnings per share. Chime Financial rose 4% after better-than-expected second-quarter earnings and third-quarter revenue guidance of $680-$690 million, surpassing the $640.6 million estimate.
ASO · Capital · Positive Academy Sports lifted its adjusted earnings outlook for fiscal 2027 above prior range and consensus.
AVO · Capital · Positive Mission Produce beat FactSet expectations for both earnings and revenue in its fiscal third quarter.
BRZE · Capital · Negative Braze dropped 19% on a revenue miss, though it beat on earnings per share.
CASY · Demand · Negative Casey's fell over 15% despite beating estimates, due to a 0.3% decline in fuel sales and weaker prepared food and beverage sales growth.
CHYM · Capital · Positive Chime rose after better-than-expected Q2 earnings and strong Q3 revenue guidance.
CSR · Capital · Positive Centerspace jumped over 8% on announcing an all-stock merger with Independence Realty Trust.
ServiceTitan Raises FY2027 Revenue Guidance to $1.139B-$1.144B
ServiceTitan expects fiscal 2027 revenue of $1.139 billion to $1.144 billion, up from its prior guidance of $1.13 billion to $1.14 billion, as the company accelerates its shift toward its Max product, which it now expects to have over 700 enrolled locations by year-end. In its fiscal second quarter, ServiceTitan reported revenue of $292.8 million, up 21% year-over-year, and free cash flow of $50.5 million, up 47%. The company guided third-quarter revenue to $285 million to $287 million, below analysts' estimate of $287.9 million, citing more moderate gross transaction volume growth and revenue recognition headwinds from Max. CFO Dave Sherry said the mix shift to Max will lower subscription revenue by $2 million to $3 million and professional services revenue by roughly $2 million over the remainder of the fiscal year, but the company now expects operating income of $152 million to $154 million for the full year, up from its prior outlook of $142 million to $147 million.
ServiceTitan, Mission Produce, Chime Financial Lead After-Hours Moves
In after-hours trading, several stocks made notable moves. ServiceTitan's stock tumbled 19% after issuing current-quarter revenue guidance slightly below analyst forecasts, despite beating consensus estimates on both lines in the second quarter. Casey's General Stores fell 10% despite beating expectations for the first fiscal quarter, as it forecast inside same-store sales growth of 2% to 5% for the full year. Mission Produce shares rose 7.5% after beating every analyst polled by FactSet on earnings per share and revenue in its fiscal third quarter. Braze dropped nearly 10% following weaker-than-expected earnings guidance, projecting non-GAAP EPS of 13 to 14 cents versus the 16 cents analysts expected. Chime Financial jumped almost 10% after providing upbeat third-quarter and full-year guidance and announcing a $590 million cash deal to buy Stride Bank. InnovAge rallied 11% on strong full-year guidance, though its fourth-quarter EPS slightly missed forecasts.
AVO · Capital · Positive Mission Produce beat every analyst's EPS and revenue estimates in its fiscal third quarter, driving shares up 7.5%.
BRZE · Capital · Negative Braze dropped nearly 10% after guiding to weaker-than-expected non-GAAP EPS of 13-14 cents versus 16 cents expected.
CASY · Capital · Negative Casey's fell 10% as it forecast full-year inside same-store sales growth of only 2% to 5%, despite beating first-quarter expectations.
CHYM · Capital · Positive Chime jumped almost 10% on upbeat Q3 and full-year guidance and a $590 million cash deal to buy Stride Bank.
INNV · Capital · Positive InnovAge rallied 11% on strong full-year guidance, though its fourth-quarter EPS slightly missed forecasts.
TTAN · Capital · Negative ServiceTitan issued current-quarter revenue guidance slightly below analyst forecasts, sending shares down 19% after hours.
ServiceTitan Names Rikus Pretorius as Next Chief Revenue Officer
ServiceTitan has appointed Rikus Pretorius as its next Chief Revenue Officer, effective at the start of the company's fiscal fourth quarter. Pretorius, who has served as Senior Vice President of Worldwide Sales for over seven years, will succeed Ross Biestman, who is stepping back from an active operating role after the fiscal third quarter but will remain as an advisor through fiscal 2027. Biestman, who joined in 2018, helped grow the company from under $30 million in ARR to over $1 billion in annualized revenue run rate and led its successful IPO. CEO Ara Mahdessian expressed confidence in Pretorius's deep operational experience and customer relationships, ensuring a seamless transition.
ServiceTitan Q2 Earnings Preview: EPS and Revenue Estimates
ServiceTitan is scheduled to announce its Q2 earnings results on Tuesday, September 8th, after market close. The consensus EPS estimate is $0.35, up 6.1% year-over-year, while the consensus revenue estimate is $285.96 million, up 18.1% year-over-year. Over the past year, ServiceTitan has beaten EPS estimates 100% of the time and revenue estimates 100% of the time. In the last three months, EPS estimates have seen four upward revisions and eleven downward, while revenue estimates have seen sixteen upward revisions and zero downward.
ServiceTitan Fair Value Estimate Drops 19% to US$109.93 Despite Strong Q1
ServiceTitan's fair value estimate has been lowered from about US$136.33 per share to roughly US$109.93 per share, a decline of around 19%, even as multiple Wall Street firms raised their price targets following strong first-quarter results. The revision reflects adjustments to modeled revenue growth, which was trimmed from approximately 18.41% to about 17.19%, a slight reduction in projected net profit margin from around 12.41% to roughly 12.11%, a lower future P/E assumption from about 97.5 times to roughly 73.4 times, and a modest increase in the discount rate from about 8.51% to approximately 8.59%. Analysts at Morgan Stanley, TD Cowen, BTIG, BMO Capital, Piper Sandler, Citi, Baird, and Truist raised their price targets after the company posted a clean earnings beat and higher guidance, with Piper Sandler highlighting a US$12.8 million revenue beat as one of ServiceTitan's strongest since its IPO. However, BTIG and TD Cowen also lowered their targets in May, citing broader software multiple compression, while Citi maintained a Neutral rating despite lifting its target, reflecting ongoing valuation debates.
ServiceTitan reports Max software adoption more than doubled last quarter
ServiceTitan released performance data for its flagship software package, Max, highlighting significant growth for contractors through AI-driven automation. Early adopters are outperforming their peers, with call booking rates up by more than 500 basis points and job close rates up by more than 1,000 basis points. Max uses AI agents to streamline the job lifecycle, including demand management, inbound call booking, and automated quote generation. Since its launch, adoption of Max has more than doubled in the most recent fiscal quarter. Success stories like Team Rooter, which reported an 18% year-over-year revenue increase, show the platform's practical impact on operational efficiency and profitability in the trades industry.
ServiceTitan, Inc. (TTAN) Bullish Thesis Highlights Platform Evolution and Monetization Potential
A bullish thesis on ServiceTitan, Inc. argues the company is evolving from a point-solution vendor into a mission-critical operating system for essential-services platforms, with more than 95% of revenue now platform-based and the ability to expand revenue capture from roughly 1% to potentially 2% of customer gross transaction value as adoption deepens. With approximately $82.1 billion of gross transaction value already flowing through customers and a serviceable market exceeding $30 billion under full deployment assumptions, ServiceTitan still has substantial runway for revenue density expansion even within its existing base. FY26 revenue grew 24% to $961 million, platform revenue grew 25%, gross retention remained above 95%, and net dollar retention exceeded 110%, underscoring strong embedded usage and expansion dynamics. Profitability is improving with Q4 non-GAAP operating margin at 10.7%, alongside long-term targets of approximately 25% operating margins and over 90% free cash flow conversion, indicating meaningful operating leverage ahead. The competitive moat is driven by deep workflow integration across dispatch, pricing, marketing, and payments, making switching costs high as customers standardize operations across multi-module deployments and Pro products, while AI initiatives such as Atlas and Max further strengthen the platform by embedding automation into core workflows.
TTAN · Demand · Positive Platform revenue growth, high retention, and expansion of revenue capture from customer gross transaction value indicate strong end-customer demand.
Madison Mid Cap Fund Says ServiceTitan Unfairly Punished on AI Fears
Madison Mid Cap Fund believes ServiceTitan is being unfairly punished as investor fears around AI disrupting software businesses led to indiscriminate selling across the industry. The fund highlighted ServiceTitan as one of the bottom five detractors for the first quarter of 2026, alongside Gartner, Brown & Brown, Thor Industries, and Medpace Holdings. ServiceTitan shares lost 35.75% over the past 52 weeks and closed at $70.20 on June 29, 2026, with a market capitalization of $6.69 billion. The fund added to its position, arguing that ServiceTitan dominates its niche of residential and commercial contractors with low-cost, essential software that is very sticky and difficult to displace. The Madison Mid Cap Fund Class I declined 4.28% in the quarter, compared to a 1.29% return for the Russell Midcap Index.
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