ServiceTitan’s Strong Financial Performance and Ambitious Future Guidance Drive Buy Rating

Needham analyst Scott Berg has reiterated their bullish stance on TTAN stock, giving a Buy rating today.

Scott Berg’s rating is based on ServiceTitan’s impressive first-quarter financial performance, which exceeded expectations with a 3.7% increase in revenue. The company’s decision to raise its full-year revenue guidance, nearly doubling the initial outperformance, indicates stronger-than-anticipated bookings. Additionally, ServiceTitan demonstrated robust subscription revenue growth of 29.1% and a 22.1% increase in gross transaction value, maintaining a consistent upward trend.
Another factor contributing to the Buy rating is the significant improvement in profitability, with ServiceTitan achieving a record high Non-GAAP Operating Margin of 7.5%. Despite broader macroeconomic conditions, the company showed resilience, with minimal impact on its operations. The updated guidance for fiscal year 2026 is notably more ambitious than that of its peers, underscoring the limited effect of macroeconomic factors on ServiceTitan’s business in the short term.

In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $140.00 price target.