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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.
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