Key Highlights
- ServiceTitan (TTAN) stock rallied 16% to reach $86.45 following impressive Q1 financial performance.
- The company reported adjusted EPS of $0.37, surpassing the $0.28 analyst consensus.
- Revenue climbed 25% year-over-year to $268.8 million, exceeding expectations.
- Fiscal 2027 full-year revenue outlook increased to a range of $1.13B–$1.14B.
- The Max AI platform is accelerating, with automated jobs representing over 10% of work at mature customer locations.
- Three major firms—KeyBanc, BTIG, and Morgan Stanley—elevated their price targets post-earnings.
Shares of ServiceTitan (TTAN) surged 16% to $86.45 during Friday’s trading session following an impressive fiscal first quarter 2027 earnings release. The rally marked a significant reversal for the stock, which had declined 30% year-to-date through 2026 prior to the announcement.
The company delivered adjusted earnings per share of $0.37, comfortably exceeding the Street’s $0.28 estimate. Revenue jumped 25% from the prior-year period to $268.8 million, topping the $257.4 million consensus forecast.
Gross transaction volume reached $21.7 billion, marking a 23% annual increase. The company maintained net dollar retention above the 110% threshold, while non-GAAP operating margin expanded by 770 basis points to reach 15.2%.
Subscription-based revenue advanced 24% to $202 million. Meanwhile, usage-driven revenue experienced even stronger growth of 29%, totaling $58.5 million. The platform’s gross margin expanded 160 basis points year-over-year to 81.3%.
The company posted a free cash flow loss of $9.6 million, representing a notable improvement from the $22.3 million negative cash flow recorded in the comparable quarter last year.
Company Raises Full-Year Outlook
Looking ahead to fiscal Q2, ServiceTitan projected revenue between $284 million and $286 million, with non-GAAP operating income expected in the $38 million to $39 million range.
For the complete fiscal year 2027, the company elevated its revenue forecast to $1.13 billion to $1.14 billion, up from the previous guidance of $1.11 billion to $1.12 billion. The operating income projection received a $14 million boost, now targeting $142 million to $147 million.
Executives indicated that incremental operating margins for the full year should exceed the company’s initial 25% benchmark.
AI-Powered Max Platform Captures Wall Street’s Attention
The performance of ServiceTitan‘s AI-driven Max solution generated significant interest among analysts. Company leadership revealed that Max deployment locations more than doubled during Q1, with plans to achieve another doubling in Q2.
At customer sites where Max has reached full implementation, automated workflows now account for more than 10% of total jobs on average. The Max platform encompasses 25 autonomous agent capabilities spanning call booking, field conversion optimization, voice-based agents, text message agents, and advertising campaign optimization.
E·D·S Air Conditioning & Plumbing, a Max adopter, reported call booking conversion rates improved by 16 percentage points while average revenue per technician increased by more than 50% following Max implementation.
The company also achieved a milestone of surpassing 2,000 customers generating over $100,000 in annualized billings. This high-value customer segment now accounts for more than 60% of total annualized billings.
KeyBanc Capital Markets characterized the quarter as “squeaky clean,” reaffirming its Overweight rating alongside a $120 price target. The firm positioned ServiceTitan among its top investment ideas for 2026.
BTIG elevated its price objective to $110 from $90 while maintaining its Buy recommendation. Morgan Stanley increased its target to $124 from $118, continuing to feature ServiceTitan as a “top pick” in its coverage universe.
CFO Dave Sherry acknowledged that Q1 received a modest boost from an additional business day and advantageous weather conditions, including ice storms in January and an earlier-than-typical start to the cooling season. He emphasized that the company’s forward guidance does not assume similar weather-related tailwinds for subsequent quarters.
