ServiceTitan Stock Drops 29% Following Q2 Earnings and Outlook

By EC Assets · Published 10 September 2026

ServiceTitan shares experienced a significant decline following its recent earnings report. The stock fell 29% after a disappointing revenue outlook overshadowed its second-quarter earnings beat. This drop comes amid broader SaaS and AI-driven sector fears, with shares having fallen over 30% year-to-date and nearly 50% from 2025 highs. The company reported its fiscal second-quarter financial results on September 8. ServiceTitan's revenue increased 21% year-over-year to $292.8 million. Non-GAAP free cash flow reached a record $50.5 million, and the company's non-GAAP operating margin improved to 15.2%. A key highlight of the quarter was the growing adoption of its Max platform, with virtual agent revenue doubling sequentially. For the fourth quarter of fiscal year 2026, ServiceTitan delivered revenue of $254 million, representing a 21% year-over-year increase. Its full fiscal year 2026 revenue stood at $961 million, up 24% year-over-year. Subscription revenue for Q4 FY26 grew 26% year-over-year, and the operating margin expanded by 740 basis points to 10.7%. In fiscal year 2025, ServiceTitan posted Q4 revenue of $209.3 million, a 29% year-over-year increase. Subscription revenue for Q4 FY25 accelerated to 31% year-over-year growth. The company achieved a 3.3% operating margin and $10.8 million in free cash flow during that quarter. Despite near-term deceleration in gross transaction value and revenue due to macro headwinds, ServiceTitan maintains a solid long-term foundation. The company's addressable market exceeds $30 billion, with only approximately 3% current penetration. ServiceTitan's latest quarterly report was far from entirely negative. The company's earnings call presentation for Q2 2027 was published on September 9, 2026. Fiscal year 2027 guidance calls for further developments. This article is intended for informational purposes only. It does not constitute investment advice.