Abstract

ServiceTitan will release fiscal second-quarter 2027 results on September 8, 2026 Post-Mkt; this preview distills last quarter’s performance, the company’s latest quarterly projections, and the prevailing institutional view for the print.

Market Forecast

For fiscal Q2 2027, ServiceTitan’s current-quarter forecast implies revenue of 285.96 million US dollars, up 24.60% year over year, with adjusted EPS estimated at 0.35, up 98.83% year over year; EBIT is projected at 38.91 million US dollars, up 124.06% year over year. The company’s core platform remains the key driver, with consistent growth in subscription and usage-based revenue underpinning the top-line trajectory. The most promising near-term driver sits within the platform business at 260.56 million US dollars last quarter, up approximately 25.00% year over year, supported by increasing adoption of AI-powered modules and payments-related features that deepen product usage and expand monetization opportunities.

Last Quarter Review

ServiceTitan delivered fiscal first-quarter 2027 revenue of 268.82 million US dollars, gross profit margin of 72.17%, a GAAP net loss attributable to shareholders of 22.82 million US dollars with a net profit margin of -8.49%, and adjusted EPS of 0.37, up 105.56% year over year. A notable financial highlight was non-GAAP EBIT of 40.81 million US dollars, up 151.77% year over year, reflecting improved operating efficiency and scale benefits. By line of business, the platform segment generated 260.56 million US dollars and grew about 25.00% year over year, accounting for 96.93% of total revenue; professional services and other contributed 8.26 million US dollars.

Current Quarter Outlook

Core Platform Momentum

Management’s outlook and recent performance trends frame fiscal Q2 as another period defined by subscription growth, usage expansion, and product attach. The revenue forecast at 285.96 million US dollars implies year-over-year growth of 24.60%, broadly consistent with fiscal Q1’s 24.63% expansion, suggesting durable demand and healthy new customer adds combined with stable expansion from the existing base. The company flagged net revenue retention above 110% last quarter, a level that generally indicates customers are expanding their spend as new modules, seats, and usage increase. Operating leverage is a central theme in investor expectations for Q2. With a gross margin of 72.17% last quarter and non-GAAP EBIT scaling to 40.81 million US dollars, the setup into Q2 assumes sustained cost discipline in go-to-market and R&D relative to revenue growth. While there is no explicit gross margin or GAAP net margin forecast, the mix of high-margin software revenue and progress on opex efficiency leaves room for adjusted profitability to remain constructive. The company’s full-year revenue outlook, previously raised to a range of 1.13–1.14 billion US dollars, sets a backdrop that emphasizes consistency across quarters rather than dependency on a single catalyst. Within the platform, payments and other transaction-linked features are increasingly relevant to monetization. Although ServiceTitan does not disclose a separate quarterly payments revenue line, the broader platform’s 260.56 million US dollars last quarter, up roughly 25.00% year over year, implies both subscription and usage-based drivers are working together. This interplay is important for Q2; if volumes and take rates remain firm through the seasonal peak periods, usage-based revenue can support outperformance relative to the midpoint of revenue expectations.

AI and Fintech Attachments

AI-enabled modules—particularly the Max platform capabilities and AI Voice Agent—are a focal point for Q2. Management indicated locations on Max more than doubled in Q1, and early data showed that Max customers outperform peers at key stages of the job lifecycle, helping raise call-booking rates and close more jobs. Customer anecdotes also highlighted that AI Voice Agent can book over 90% of inbound calls during peak periods, which suggests potential for measurable ROI and faster payback on software investment decisions. The significance of AI for this quarter lies less in one-time revenue and more in sustained attach. As Max and Voice Agent permeate the base, upsell opportunities expand, and customer workflows become stickier. That dynamics tends to reinforce net revenue retention above 110% and can manifest in higher usage intensity that supports growth in the platform line. The positive margin implications come through lower support burden per unit of revenue and higher average contract values as customers adopt more automation features. Fintech and transaction layers also intersect with the AI story. A larger share of jobs initiated or supported by AI tends to flow through digitized, payments-enabled workflows, which can lift gross transaction volume and drive fee revenue. In Q1, gross transaction volume rose to 21.70 billion US dollars, up strongly year over year, providing a basis for confidence that, with continued product adoption, transaction-based monetization remains an incremental contribution in Q2. The near-term watch item is whether the company can maintain that momentum at the same pace while preserving the recent improvements in operating margin.

Stock Price Drivers This Quarter

The market’s reaction after the Post-Mkt release on September 8, 2026 will likely turn on four quantifiable items: revenue versus the top end of the implied range, adjusted EPS versus the 0.35 estimate, any updates on non-GAAP EBIT margin trajectory, and qualitative commentary on AI adoption and customer expansion. Investors will look for continuity from Q1’s 24.63% revenue growth baseline; if Q2 revenue lands at or above 285.96 million US dollars and adjusted EPS meets or exceeds 0.35, the print would validate the multi-quarter cadence embedded in the raised full-year outlook. Conversely, any signs of deceleration in subscription growth or lower usage intensity could prompt a reassessment of the exit-velocity into the seasonally important back half. Another key driver is customer efficiency metrics. Disclosures or color around sales cycles, win rates, or implementations can be as influential as the headline numbers, particularly given the rapidly evolving AI roadmap. Confirmation that Max penetration continues to rise and that AI Voice Agent expands to more accounts would support the hypothesis that AI-led workflows are improving the conversion funnel, which, in turn, supports revenue durability. Investors will also parse any commentary on net revenue retention, as maintenance of 110%+ would indicate that upsell motion remains solid. Finally, expectations have been building into the event because of the raised fiscal 2027 revenue outlook and multiple Buy reiterations from major sell-side firms over the last three months. That optimism raises the bar. Delivery near the upper bound of revenue expectations, combined with reaffirmed full-year guidance and evidence of operating leverage, is likely necessary to sustain positive stock momentum. Conversely, if the company emphasizes increased near-term investment to accelerate AI or payments capabilities, the market may balance the long-term benefits against any short-term margin trade-offs.

Analyst Opinions

Across the institutional commentary collected since January 1, 2026 and up to September 1, 2026, the majority view is bullish. Among the notes observed, we count multiple Buys or Overweights and one Hold, with zero Sells. The positive cohort includes Morgan Stanley, Truist Securities, Piper Sandler, BTIG, Needham, and Stifel Nicolaus; Citi is on Hold. Based on these items, the ratio of bullish to bearish opinions is effectively 6:0 (with one Hold in the sample), indicating that the majority stance favors upside into the quarter. Morgan Stanley reiterated an Overweight rating and lifted its price target to 124.00 US dollars during the period after the company exceeded expectations and raised its full-year outlook, emphasizing the attractiveness of the product roadmap and the path to profitable scale. Truist Securities increased its price target to 110.00 US dollars while maintaining a Buy, citing the comprehensive beat in the prior quarter and the confidence signaled by raising the fiscal 2027 revenue outlook to 1.13–1.14 billion US dollars. Piper Sandler maintained Buy with targets cited at 100.00–120.00 US dollars across separate notes, pointing to durable growth in the core platform and improving efficiency. BTIG affirmed Buy with 105.00–110.00 US dollars targets, highlighting consistent execution against growth and profitability milestones. Needham reiterated Buy with a 100.00 US dollars target, specifically calling out the strengthening AI and fintech engines as underappreciated levers to sustain 20%+ growth. Stifel Nicolaus maintained Buy with a 125.00 US dollars target, reinforcing that product velocity and adoption trends support the near-term and multi-year model. The bullish case from these firms centers on three pillars relevant to the upcoming print. The first is continuity of top-line growth in the mid-20% range, supported by subscription expansion and robust usage trends. The second is margin resilience, where non-GAAP EBIT scaling is seen as evidence that the business can balance growth with operating discipline; the step-up to 40.81 million US dollars in adjusted operating income last quarter is viewed as a proof point. The third is the product catalyst path: early results from AI Voice Agent and the broader Max platform suggest measurable customer outcomes that can accelerate attach rates and raise average contract values through the cycle. Within that framework, the majority view expects Q2 revenue near the high end of the implied range and adjusted EPS to meet or exceed the 0.35 estimate. The debate among bullish analysts is less about whether growth persists and more about the slope of profitability improvement through the next several quarters. Several expect that as AI and payments features deepen the ecosystem, operating leverage should manifest in incremental margin gains without sacrificing innovation cadence. The Hold stance, as expressed by Citi, reflects valuation considerations and a preference to see additional quarters of consistent execution on AI and transaction monetization before moving to a more constructive rating, but it does not contradict the broader narrative of improving fundamentals. In sum, consensus among the majority of institutional voices is that ServiceTitan enters fiscal Q2 2027 with favorable momentum: a raised full-year revenue outlook, robust net revenue retention, expanding AI adoption, and recent upside on adjusted profitability. The near-term validation point is straightforward: print revenue consistent with the 285.96 million US dollars forecast, deliver adjusted EPS at or above 0.35, and pair those with qualitative detail that Q2 is extending the Q1 pattern of steady growth with operational efficiency. If those conditions are met, the majority expects the investment case to remain constructive into the back half of the fiscal year.