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On Friday, Truist Securities expressed continued confidence in ServiceTitan (NASDAQ:TTAN), maintaining a Buy rating and a $120.00 price target for the company’s stock. The endorsement came after ServiceTitan reported robust fourth-quarter results, surpassing estimates in revenue, profits, and cash flow. With annual revenue reaching $724.36M and an impressive gross margin of 65.46%, the company demonstrated accelerated growth in both its top line and Gross Transaction (JO:TCPJ) Value (GTV). According to InvestingPro data, while currently unprofitable, analysts expect the company to turn profitable this year.
ServiceTitan’s strong quarterly performance was attributed to effective execution across key performance indicators (KPIs). Notable achievements included widespread adoption of the Pro product, progress in the emerging commercial vertical, increased traction in the roofing sector, and robust sales activities for both new and expanded core product offerings.
The company experienced some unexpectedly positive dynamics in the fourth quarter, such as successful deal closures and benefits from weather-related factors. Despite recent macroeconomic developments, ServiceTitan did not observe any significant changes in customer volumes or ticket sizes.
Looking ahead, ServiceTitan has provided guidance that exceeds previous estimates, reinforcing Truist Securities’ positive outlook on the company’s long-term growth potential. The firm’s reiterated Buy rating and $120 price target reflect this optimism about ServiceTitan’s future performance and market position.
In other recent news, ServiceTitan reported a significant increase in fourth-quarter 2025 revenue, rising 29% year-over-year to $209.3 million, with gross transaction volume reaching $17 billion, marking a 26% increase. Subscription revenue grew by 31%, driven by strong new bookings and expansion within the company. Analysts from Stifel, KeyBanc, Loop Capital, and Needham have provided varied outlooks, with Stifel and Needham maintaining a Buy rating, while Loop Capital holds a Hold rating, and KeyBanc remains Overweight on the stock. Stifel adjusted its price target for ServiceTitan to $110, down from $120, while Loop Capital reduced its target to $90 from $105. KeyBanc and Needham have set their price targets at $120 and $125, respectively.
ServiceTitan’s fiscal year 2026 guidance exceeded analyst forecasts, reflecting confidence in continued growth, with revenue projections between $895 million and $950 million. The company is focused on expanding its enterprise capabilities and commercial market presence, which analysts see as a strategic move to capture a larger share of the market. Analysts have noted ServiceTitan’s resilience against economic uncertainties, highlighting the company’s ability to maintain job performance and average ticket size despite broader economic concerns. The positive reception to ServiceTitan’s earnings and strategic initiatives underscores its potential for sustained growth, with analysts projecting a promising outlook for the company’s future performance.
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