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On Friday, Goldman Sachs analysts maintained a Neutral rating and a $110 price target for ServiceTitan stock (NASDAQ: TTAN), which currently trades at $114.55. According to InvestingPro data, the company demonstrated robust revenue growth of 25.78% in the latest quarter, though it remains unprofitable over the last twelve months. The decision follows the company’s first-quarter fiscal year 2026 results, which showed strong performance in revenue, operating margin, and free cash flow margin. Despite this, the stock dropped 13% in after-hours trading, as investors reacted to a slowdown in subscription and usage revenue growth compared to the previous quarter.
ServiceTitan’s recent quarterly results demonstrated solid execution in several areas. With a market capitalization of $10.26 billion and an impressive current ratio of 4.82, the company maintains strong financial health. The company successfully launched four major strategic accounts in April, tapping into a $360 billion gross transaction value (GTV) commercial opportunity. Additionally, there was accelerated growth among enterprise customers, which is expected to aid ServiceTitan in expanding into new verticals and increasing its total addressable market. InvestingPro analysis reveals 8 additional key insights about the company’s potential, available to subscribers.
The company also reported progress in its Pro Products segment, with emerging products contributing positively to its portfolio. This development is seen as a sign of ServiceTitan’s potential to capture a larger share of the market. Furthermore, the company secured a significant contract with one of the largest residential roofing businesses in the United States, which operates over 80 locations.
Strategic and technology partnerships with companies like GAF and EagleView are considered crucial for ServiceTitan’s expansion into new verticals. These collaborations are viewed as validations of the company’s potential to grow its presence in the vertical SaaS market, which is estimated to be worth $30 billion.
While the results were encouraging, Goldman Sachs analysts remain cautious, looking for consistent topline execution and sustained margin expansion throughout the fiscal year 2026. The company maintains a healthy gross profit margin of 66.59% and operates with moderate debt levels. For deeper insights into ServiceTitan’s financial health and growth prospects, including detailed valuation metrics and expert analysis, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, ServiceTitan Inc. reported a strong financial performance for the first quarter of 2025, with revenue reaching $215.7 million, reflecting a 27% year-over-year increase. Subscription revenue also saw significant growth, climbing by 29% to $162.7 million. The company has provided guidance for the second quarter of 2025, expecting revenue between $228 million and $230 million, and for the full fiscal year 2026, they anticipate revenue between $910 million and $920 million. ServiceTitan aims for an operating income of $54 million to $59 million for the year, targeting a long-term non-GAAP operating margin of 25%. The company continues to focus on product innovation and market expansion, which has been instrumental in its recent growth. Additionally, ServiceTitan’s strategic initiatives include expanding its presence in commercial and construction markets. The company’s commitment to leveraging technology for operational efficiency was underscored during an earnings call, where they discussed AI and digital agent opportunities. Despite a slight decline in stock price post-earnings announcement, the company’s financial results highlight a positive trajectory.
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