ServiceTitan (NASDAQ:TTAN) Releases Earnings Results

ServiceTitan (NASDAQ:TTAN) issued its quarterly earnings data on Tuesday. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05, FiscalAI reports. The business had revenue of $292.76 million during the quarter, compared to analysts’ expectations of $285.89 million. ServiceTitan had a negative return on equity of 5.59% and a negative net margin of 13.44%.The company’s revenue for the quarter was up 20.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.33 EPS.

Here are the key takeaways from ServiceTitan’s conference call:

• ServiceTitan reported 21% year-over-year revenue growth to $292.8 million, a 15.2% operating margin, and record quarterly free cash flow of $50.5 million. Management raised its expected FY2027 incremental margin to 33% and said 25% will be a floor going forward.
• Max adoption is accelerating, with enrolled locations exceeding quarterly targets and expected to surpass 700 by fiscal year-end. Management cited stronger customer revenue, booking, ticket-size, and profitability outcomes, while Virtual Agent revenue and call volume more than doubled sequentially.
• Gross transaction volume growth slowed to 17%, roughly 200 basis points below recent quarters, as customer lead and job volumes moderated—particularly among HVAC customers. The company rolled the softer Q2 trend into its outlook and guided to $285 million–$287 million of Q3 revenue and $1.139 billion–$1.144 billion for FY2027.
• The shift toward Max and related implementation practices are expected to create a near-term $4 million–$5 million revenue headwind through lower subscription-recognition timing and professional-services revenue. ServiceTitan is also deferring expansion into new commercial trades and broader residential exteriors to prioritize Max and its Software Factory, potentially postponing some growth opportunities.

ServiceTitan Trading Down 7.2%

Shares of TTAN opened at $81.58 on Wednesday. The firm has a market cap of $7.78 billion, a P/E ratio of -56.26 and a beta of 0.11. ServiceTitan has a 12 month low of $54.17 and a 12 month high of $119.99. The stock’s 50 day moving average is $84.66 and its two-hundred day moving average is $72.69.

ServiceTitan News Roundup

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported fiscal Q2 adjusted earnings of $0.40 per share, above the roughly $0.35-$0.36 analyst consensus, while revenue of $292.76 million exceeded expectations near $285.9 million. Revenue increased 20.9% year over year, and earnings improved from $0.33 per share in the prior-year quarter. ServiceTitan Announces Fiscal Second Quarter Financial Results
• Positive Sentiment: The quarterly results suggest continued demand for ServiceTitan’s software platform for the trades, with revenue growth and profitability ahead of Wall Street expectations. ServiceTitan Q2 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: ServiceTitan appointed company veteran Rikus Pretorius as its next chief revenue officer. Current CRO Ross Biestman will remain through the end of the fiscal year, making the transition orderly but adding uncertainty around the sales organization’s execution. ServiceTitan Names Rikus Pretorius Next Chief Revenue Officer
• Negative Sentiment: Fiscal Q3 revenue guidance of $285 million-$287 million came in slightly below the $287.8 million consensus estimate. The outlook, combined with the CRO transition, overshadowed the strong Q2 results and has led to a sharp decline in the stock. Why ServiceTitan Stock Is Diving After Earnings Beat
• Negative Sentiment: Management’s sales-leadership shakeup is raising investor concerns about growth execution, particularly because the company remains unprofitable on a GAAP basis and analysts expect a full-year loss. ServiceTitan Tumbles as Management Shakeup Overshadows Results

Analyst Upgrades and Downgrades

TTAN has been the topic of several analyst reports. Citigroup reaffirmed a “neutral” rating on shares of ServiceTitan in a report on Monday, June 8th. Needham & Company LLC restated a “buy” rating on shares of ServiceTitan in a research report on Wednesday. Piper Sandler raised their price objective on shares of ServiceTitan from $100.00 to $115.00 and gave the stock an “overweight” rating in a research note on Friday, June 5th. BTIG Research reaffirmed a “buy” rating and set a $110.00 target price on shares of ServiceTitan in a report on Friday, July 10th. Finally, Robert W. Baird lifted their target price on shares of ServiceTitan from $94.00 to $101.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Fourteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $108.93.

Insider Buying and Selling at ServiceTitan

In other news, CFO David Sherry sold 20,192 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $66.19, for a total transaction of $1,336,508.48. Following the transaction, the chief financial officer owned 398,033 shares in the company, valued at $26,345,804.27. This trade represents a 4.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ara Mahdessian sold 51,947 shares of the business’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $80.98, for a total transaction of $4,206,668.06. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 514,837 shares of company stock worth $39,203,222. 39.89% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of TTAN. Kestra Advisory Services LLC acquired a new position in shares of ServiceTitan during the fourth quarter valued at approximately $194,000. MetLife Investment Management LLC lifted its position in shares of ServiceTitan by 81.0% in the fourth quarter. MetLife Investment Management LLC now owns 1,276 shares of the company’s stock valued at $136,000 after acquiring an additional 571 shares in the last quarter. Deutsche Bank AG acquired a new stake in shares of ServiceTitan in the fourth quarter worth approximately $135,000. PNC Financial Services Group Inc. boosted its stake in shares of ServiceTitan by 21.4% in the fourth quarter. PNC Financial Services Group Inc. now owns 1,042 shares of the company’s stock worth $111,000 after acquiring an additional 184 shares during the last quarter. Finally, Rhumbline Advisers acquired a new stake in shares of ServiceTitan in the third quarter worth approximately $166,000.

ServiceTitan Company Profile

ServiceTitan, Inc (NASDAQ: TTAN) is a cloud-based software provider specializing in end-to-end business management solutions for residential and commercial trade contractors. The company’s platform integrates customer relationship management, scheduling and dispatch, mobile workforce management, invoicing, payments and reporting tools into a single suite. By automating key back-office processes, ServiceTitan helps field service businesses improve operational efficiency, enhance customer experience and drive revenue growth.

At the core of ServiceTitan’s offering is a mobile application that allows technicians to access job details, update work orders, capture signatures and process payments from the field.