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ServiceTitan Stock Sinks 17% After Weak Guidance
Why is ServiceTitan stock down today?
ServiceTitan (TTAN) stock fell 17% Wednesday after the home-services software company issued weak third-quarter revenue guidance and its longtime sales chief announced he is stepping down.
Key numbers
| Q2 Revenue | $292.8M+21% YoY |
|---|---|
| Adjusted (Non-GAAP) EPS | $0.40vs $0.35 est.; GAAP loss was $(0.26)/share |
| Q3 Revenue Guidance | $285M-$287Mbelow ~$288M est. |
| Gross Transaction Volume | $26.8B+17% YoY, down from 19% |
| Stock Move | -17% to -18%after-hours/premarket; deepened intraday (per [5]) |
| Market Cap | ~$5.5Bdown from ~$7.4B pre-earnings |
What happened
ServiceTitan (TTAN) stock fell 17% Wednesday after the home-services software company issued weak third-quarter revenue guidance and its longtime sales chief announced he is stepping down. Second-quarter revenue actually beat estimates, rising 21% to $292.8 million, with adjusted profit of 40 cents a share topping forecasts. But its third-quarter outlook of $285 million to $287 million fell short of Wall Street's roughly $288 million estimate, and growth in transaction volume flowing through its platform slowed to 17% from 19% a year earlier. The company also said sales chief Ross Biestman is stepping back after nearly a decade, handing the role to veteran Rikus Pretorius.
Why it matters
ServiceTitan makes the software that plumbers, electricians and HVAC companies use to schedule jobs, send invoices and get paid, so its results are a read on how much work smaller trade businesses are landing right now. The slowdown in transaction volume suggests those contractors are seeing fewer jobs, not just tighter budgets, which is a warning sign for the broader home-services economy. Investors also reacted to the abrupt sales-leadership change days before a new quarter begins, adding uncertainty on top of the weaker outlook.
Who this affects
- MarketbearishLow impact
- Vertical-software peers Toast and Procore dipped in sympathy trading.
- CompanybearishHigh impact
- ServiceTitan shareholders saw shares hit fresh 52-week lows.
- CompetitorsneutralLow impact
- Rivals largely unaffected; ServiceTitan's guidance cut is company-specific.
- IndustrymixedMedium impact
- Slower job growth at trade contractors signals cooling demand.
ServiceTitan vs Procore, Toast, Samsara
How we got here
ServiceTitan reports Q2 revenue up 21%, issues weak Q3 guidance after market close
Company announces CRO Ross Biestman stepping back, Rikus Pretorius named successor
Shares open sharply lower, losses deepen through the trading session
Canaccord cuts price target to $90 from $105, citing GTV deceleration
What to watch
- Fiscal Q3 results to test whether the guidance cut was one-offDecember 2026
- Rikus Pretorius formally takes over as chief revenue officerQ4 FY2027
- Whether existing-customer job growth and GTV growth reaccelerate from 17%Ongoing
Educational content only. Not investment advice.
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