Why ServiceTitan (TTAN) Stock Is Falling 17% Despite Beating Earnings

TLDR

• ServiceTitan stock dropped more than 17% in premarket trading on Wednesday despite beating Q2 earnings estimates.
• Q2 revenue came in at $292.8 million, up 21% year over year, topping the $285.9 million Wall Street expected.
• Q2 earnings were 40 cents per share, beating the 35 cent estimate.
• Q3 revenue guidance of $285-$287 million came in below the $288 million analysts expected.
• Canaccord cut its price target on TTAN from $105 to $90, while keeping its Buy rating.

ServiceTitan stock was down more than 17% in premarket trading on Wednesday, September 9, after the company posted a Q2 earnings beat that wasn’t enough to satisfy investors. The stock was trading around $81.58 heading into the session, already down 11.5% over the prior week.

ServiceTitan, Inc., TTAN

The company reported Q2 earnings of 40 cents per share on revenue of $292.8 million. That beat analyst expectations of 35 cents per share and $285.9 million in revenue. Revenue grew nearly 21% from a year ago.

SERVICETITAN $TTAN Q2’27 EARNINGS HIGHLIGHTS

🔹 Revenue: $292.8M (Est. $286M) 🟢; +21% YoY
🔹 Adj. EPS: $0.40 (Est. $0.35) 🟢
🔹 GTV: $26.8B; +17% YoY
🔹 Non-GAAP FCF: $50.5M

FY27 Guide:
🔹 Revenue: $1,139M-$1,144M (Est. $1.14B) 🟡
🔹 Non-GAAP Oper Income: $152M-$154M (Est.… pic.twitter.com/hcw4ln2mHh

— Wall St Engine (@wallstengine) September 8, 2026

However, not everything landed well with investors. ServiceTitan also posted an adjusted loss per share of $0.26, narrowly missing the forecasted loss of $0.25.

Q3 Outlook Disappoints

The bigger issue was the forward guidance. ServiceTitan guided for Q3 revenue of $285 million to $287 million, short of the $288 million Wall Street was expecting, according to FactSet.

Full-year revenue guidance of $1.139 billion to $1.144 billion was slightly ahead of the $1.138 billion consensus, offering some offset, but not enough to reverse the premarket selloff.

Co-founder and CEO Ara Mahdessian pointed to the company’s agentic operating system as a key driver, saying it added $50 million of non-GAAP free cash flow in Q2. He called the AI opportunity a “once in a lifetime” moment for the business.

Gross transaction volume, which ServiceTitan uses as a proxy for total customer revenue on its platform, rose 19% to $22.9 billion in the second quarter.

Growth Deceleration Raises Flags

Canaccord Genuity cut its price target on TTAN to $90 from $105, while holding its Buy rating. The analyst cited softer growth as the key concern.

Gross transaction value growth came in at 17% for the quarter, roughly 200 basis points below the company’s recent normalized pace. The revenue beat of around $8 million was also slightly below ServiceTitan’s typical $9-10 million outperformance.

Lead and job growth softened across the industry, particularly in HVAC. Customers did not offset lower volume with higher ticket sizes during the period.

An expected business-day benefit in Q2 was smaller than anticipated. The July 4 holiday period behaved more like a weekend day than a business day, which pulled some demand forward into Q1.

Lead trends did improve through the quarter and appeared to stabilize in July. That said, management stopped short of saying the slowdown was behind them.

Canaccord noted that InvestingPro analysis still expects ServiceTitan to be profitable this year, despite current losses showing on the books.

The stock entered Wednesday’s session already under pressure, with the premarket drop extending a rough stretch for TTAN.

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