NEEDHAM ANALYST REITERATES BUY RATING FOR SERVICETITAN STOCK

Published 06/06/2025, 12:12
NEEDHAM ANALYST REITERATES BUY RATING FOR SERVICETITAN STOCK

On Friday, Needham analysts reaffirmed a Buy rating for ServiceTitan stock (NASDAQ: TTAN), maintaining a $140.00 price target. The decision follows the company’s strong first-quarter financial results, which showed a 3.7% increase in revenue. With a market capitalization of $10.26 billion, InvestingPro data shows the company achieved impressive 25.78% revenue growth over the last twelve months. ServiceTitan also raised its full-year revenue guidance, indicating that bookings exceeded expectations.

Subscription revenue for ServiceTitan grew by 29.1%, while Gross Transaction (JO:NTUJ) Value (GTV) increased by 22.1%, aligning with recent trends. The company maintains strong operational efficiency with a 66.59% gross margin and healthy liquidity, demonstrated by a current ratio of 4.82. The company’s profitability improved significantly, achieving a record Non-GAAP Operating Margin of 7.5% for the quarter. For deeper insights into ServiceTitan’s financial health and valuation metrics, check out the comprehensive Pro Research Report available on InvestingPro.

The macroeconomic environment did not impact ServiceTitan’s quarterly financials or qualitative commentary, according to the analyst. The updated guidance for fiscal year 2026 was notably more aggressive than many other companies covered by Needham.

Overall, the analyst’s positive outlook on ServiceTitan reflects confidence in the company’s ability to withstand macroeconomic pressures in the short term.

In other recent news, ServiceTitan reported a strong financial performance for the first quarter of 2025, with total revenue reaching $215.7 million, marking a 27% increase year-over-year. Subscription revenue grew by 29% to $162.7 million, while usage revenue increased by 22% to $45.3 million. The company’s operating income improved significantly, boasting a 7.5% margin. Looking ahead, ServiceTitan has provided guidance for the second quarter of 2025, expecting revenue between $228 million and $230 million, and full fiscal year 2026 revenue between $910 million and $920 million.

In other developments, ServiceTitan successfully launched four major strategic accounts in April, tapping into a $360 billion commercial opportunity. The company also secured a significant contract with a major U.S. residential roofing business operating over 80 locations. Strategic partnerships with firms like GAF and EagleView are seen as crucial for ServiceTitan’s expansion into new verticals. Despite these positive results, Goldman Sachs maintained a Neutral rating for ServiceTitan stock, citing a cautious outlook for consistent topline execution and sustained margin expansion. The company’s continued focus on product innovation and market expansion is expected to drive further growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.