TLDR
- ServiceTitan stock jumped 16% to $86.45 after beating Q1 earnings and revenue estimates.
- Adjusted EPS came in at $0.37 vs. $0.28 expected; revenue rose 25% to $268.8 million.
- Full-year fiscal 2027 revenue guidance raised to $1.13B–$1.14B.
- AI-powered Max program is gaining traction, with over 10% of jobs fully automated at ramped customers.
- KeyBanc, BTIG, and Morgan Stanley all raised price targets following the results.
ServiceTitan (TTAN) stock jumped 16% to $86.45 in Friday trading after the company posted a strong fiscal Q1 2027 earnings report. That move came after the stock had been down 30% for 2026 heading into the print.
Adjusted EPS landed at $0.37, well above the $0.28 consensus. Revenue rose 25% year over year to $268.8 million, beating the $257.4 million Wall Street had penciled in.
Gross transaction volume hit $21.7 billion, up 23% year over year. Net dollar retention stayed above 110%, while non-GAAP operating margin improved 770 basis points to 15.2%.
$TTAN | ServiceTitan, Inc., Q1-2027 Earning Report pic.twitter.com/AiDb5zQ1mA
— Hardik Shah (@AIStockSavvy) June 4, 2026
Subscription revenue grew 24% to $202 million. Usage revenue climbed 29% to $58.5 million. Platform gross margin came in at 81.3%, up 160 basis points year over year.
Free cash flow was negative $9.6 million, an improvement from negative $22.3 million in the same period last year.
Guidance Gets a Lift
For fiscal Q2, ServiceTitan guided for revenue of $284 million to $286 million and non-GAAP operating income of $38 million to $39 million.
Full-year fiscal 2027 guidance was raised to $1.13 billion to $1.14 billion in revenue, up from the prior range of $1.11 billion to $1.12 billion. Operating income guidance was lifted by $14 million to a range of $142 million to $147 million.
Management said full-year incremental operating margins are now expected to come in above the initial 25% target.
Max Program Drives Analyst Optimism
The company’s AI-focused Max offering drew particular attention. Management said ServiceTitan more than doubled Max locations in Q1 and expects to double again in Q2.
Across fully ramped Max customers, more than 10% of jobs are now fully automated on average. Max includes 25 agentic capabilities covering booking, field conversion, voice agents, SMS agents, and ad optimization.
One customer, E·D·S Air Conditioning & Plumbing, reported call booking rates up 16 percentage points and average revenue per technician rising more than 50% after adopting Max.
ServiceTitan also surpassed 2,000 customers with annualized billings above $100,000. That group now represents over 60% of total annualized billings.
KeyBanc Capital Markets called it a “squeaky clean quarter,” reiterating an Overweight rating and $120 price target. The firm listed ServiceTitan as a top idea for 2026.
BTIG raised its price target to $110 from $90, maintaining a Buy rating. Morgan Stanley bumped its target to $124 from $118, keeping ServiceTitan as a “top pick.”
CFO Dave Sherry noted that Q1 got a small tailwind from one extra business day and favorable weather, including January ice storms and an early cooling season start. He said the company is not factoring in similar weather benefits for the rest of the year.
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