ServiceTitan Jumps After Crushing Q3 Estimates, Raises Outlook
Software firm beats profit estimates by 60% and boosts full-year forecast as it expands its platform for trade professionals, signaling strong operational momentum.
ServiceTitan Inc. (NASDAQ: TTAN) shares surged Wednesday after the software provider for trade professionals posted third-quarter results that significantly outpaced Wall Street expectations and raised its financial outlook for the full year, underscoring robust demand for its platform.
The Glendale, California-based company reported a 25% year-over-year increase in revenue to $249.2 million for the quarter ending October 31. The performance drove a substantial beat on profitability, with non-GAAP diluted earnings per share reaching $0.24, crushing the consensus analyst estimate of $0.15 by 60%, according to its official announcement.
Investors reacted positively to the strong results and upbeat forecast. In afternoon trading, ServiceTitan's stock climbed 2.44% to $95.59, adding to its recent momentum. The company demonstrated significant operational leverage, with its non-GAAP operating margin expanding to 8.6%, a dramatic improvement from just 0.8% in the same quarter last year.
Building on the strong quarterly performance, ServiceTitan issued an optimistic forecast. For the fourth quarter, it projects revenue between $244 million and $246 million. More significantly, it raised its full-year 2026 revenue guidance to a range of $951 million to $953 million, with non-GAAP income from operations now expected to be between $83 million and $84 million.
"I am deeply humbled by how much progress we’ve made during our first year as a public company," said Ara Mahdessian, Co-Founder and CEO of ServiceTitan, in a statement. "While we’ve come a long way together, I have never been more confident that our opportunity to build the operating system for the trades is only just beginning."
The strong earnings report comes as analysts have maintained a broadly bullish stance on the company. Ahead of the announcement, investment banks like Morgan Stanley and Stifel had reiterated 'Buy' ratings, with price targets of $118 and $145, respectively. The company's execution appears to be validating that optimism.
ServiceTitan's platform provides an all-in-one software solution for residential and commercial service contractors, including plumbers, electricians, and HVAC technicians, helping them manage everything from scheduling and dispatch to invoicing and marketing. The company's growth strategy involves both deepening its penetration in existing trades and expanding its offerings into new verticals.
Coinciding with its earnings release, ServiceTitan announced a significant new partnership with TIMEPROOFUSA and Master Roofing Solutions, two rapidly growing companies in the residential and commercial roofing sectors. The companies will standardize their operations on ServiceTitan's platform to power an aggressive nationwide expansion, aiming to open 50 branches across 30 states. This move highlights ServiceTitan's role as a critical technology backbone for scaling businesses in the trades.
With a market capitalization of over $8.3 billion, ServiceTitan has solidified its position as a key technology player in an industry that has historically been slow to adopt digital tools. The third-quarter results suggest its strategy is paying off, delivering both high revenue growth and a clear path toward sustained profitability that is catching the eye of institutional investors.