ServiceTitan (TTAN) shares soared 16% to $86.45 on Friday, their biggest single-day gain since the company's IPO in December 2024, after the software platform for trade professionals reported fiscal Q1 2027 results that crushed expectations. The rally reversed a 30% decline for the stock year-to-date, buoyed by an earnings beat, raised full-year guidance, and a wave of analyst upgrades.
The company posted adjusted earnings per share of $0.37, well above the FactSet consensus of $0.28 and up from $0.18 a year earlier. Revenue jumped 25% year-over-year to $268.8 million, exceeding Wall Street's forecast of $257 million. Subscription revenue grew 24% to $202 million, while usage revenue climbed 29% to $58.5 million. Gross transaction volume hit $21.7 billion, up 23%.
Management lifted its fiscal 2027 outlook, now projecting revenue of $1.13 billion to $1.14 billion (up from $1.11–$1.12 billion) and operating income of $142–$147 million, a $14 million increase. Non-GAAP operating margin improved 770 basis points to 15.2%, and net dollar retention stayed above 110%. Platform gross margin reached 81.3%.
The results drew bullish analyst calls. KeyBanc (Overweight, $120 target) called it a “squeaky clean quarter” and named TTAN a top 2026 idea. BTIG raised its target to $110 from $90 (Buy), Morgan Stanley to $124 from $118 (top pick), Piper Sandler to $115 from $100 (Overweight), and BMO Capital to $103 from $92 (Outperform). Analysts highlighted accelerating adoption of the AI-powered Max platform, which automates workflows and now handles over 10% of jobs at fully ramped customers. The program doubled locations in Q1 and is expected to double again in Q2. One customer, E·D·S Air Conditioning & Plumbing, reported call booking rates up 16 percentage points and average revenue per technician rising over 50% after adopting Max.
CFO Dave Sherry cautioned that Q1 benefited from one extra business day and favorable weather, which the company is not factoring into the rest of the year. Still, the strong execution and AI momentum left Wall Street decidedly upbeat.
