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Shares of TTAN Jump on Strong Q3 Earnings Beat & Top-Line Growth
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Key Takeaways
ServiceTitan posted Q3 earnings of 24 cents per share, topping estimates and reversing a year-ago loss.
Q3 revenues rose 25% to $249.2M, fueled by customer growth and a 22% jump in transaction volume.
Non-GAAP operating income hit $21.5M, up sharply from $1.6M, with gross margin expanding 390 basis points.
ServiceTitan (TTAN - Free Report) shares have jumped 13% in the past couple of days, post third-quarter fiscal 2026 results reported on Thursday (Dec. 4). The company reported earnings of 24 cents per share, which surpassed the Zacks Consensus Estimate by 60%. It had reported a loss of 45 cents in the year-ago quarter.
Revenues were $249.2 million, which rose 25% year over year and beat the consensus mark by 4.5%. The upside can be attributed to steady execution with both new and existing customers and strength in usage revenues. The company registered gross transaction volume of $21.7 billion, up 22% year-over-year. Net dollar retention was more than 110%.
ServiceTitan’s Operating Highlights
Adjusted gross profit in the reported quarter was 74.3%, which expanded 390 bps year over year. Platform gross margin expanded 310 bps year over year to 80.2%.
ServiceTitan Inc. Price, Consensus and EPS Surprise
Total operating expenses of $163.6 million increased 17.9% year over year due to elevated research and development (up 17.8% year over year), sales and marketing (up 16.6% year over year) and general and administrative expenses (up 20.5% year over year).
Non-GAAP operating income was $21.5 million compared with $1.6 million in the year-ago quarter.
ServiceTitan’s Balance Sheet Remains Strong
As of Oct. 31, 2025, ServiceTitan had cash, cash equivalents and restricted cash of $493.2 million.
Free cash flow was $37.7 million compared with $10.6 million in the year-ago quarter.
ServiceTitan Offers Q4 and Fiscal 2026 Guidance
For the fourth quarter of fiscal 2026, ServiceTitan expects total revenues in the $244 million to $246 million range.
The company expects the operating income to be in the range of $16 million to $17 million.
For fiscal 2026, revenues are expected to be between $951 million and $953 million.
The company expects the operating income to be in the $83 million to $84 million range.
Zacks Rank & Stocks to Consider
Currently, ServiceTitan carries a Zacks Rank #3 (Hold).
Advanced Energy Industries shares have returned 90.3% in a year. The Zacks Consensus Estimate for Advanced Energy Industries' 2025 earnings is pegged at $6.23 per share, up 9.7% over the past 30 days, implying growth of 68% from the year-ago quarter’s reported figure.
Digital Turbine shares have jumped 248.3% in a year. The Zacks Consensus Estimate for APPS’ fiscal 2026 earnings is pegged at 33 cents per share, unchanged over the past 30 days, suggesting a 5.7% decline from fiscal 2025.
Amphenol shares have appreciated 92.9% in a year. The Zacks Consensus Estimate for Amphenol’s 2025 earnings has increased 2.2% to $3.29 per share in the past 30 days, indicating year-over-year growth of 74.1%.
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Shares of TTAN Jump on Strong Q3 Earnings Beat & Top-Line Growth
Key Takeaways
ServiceTitan (TTAN - Free Report) shares have jumped 13% in the past couple of days, post third-quarter fiscal 2026 results reported on Thursday (Dec. 4). The company reported earnings of 24 cents per share, which surpassed the Zacks Consensus Estimate by 60%. It had reported a loss of 45 cents in the year-ago quarter.
Revenues were $249.2 million, which rose 25% year over year and beat the consensus mark by 4.5%. The upside can be attributed to steady execution with both new and existing customers and strength in usage revenues. The company registered gross transaction volume of $21.7 billion, up 22% year-over-year. Net dollar retention was more than 110%.
ServiceTitan’s Operating Highlights
Adjusted gross profit in the reported quarter was 74.3%, which expanded 390 bps year over year. Platform gross margin expanded 310 bps year over year to 80.2%.
ServiceTitan Inc. Price, Consensus and EPS Surprise
ServiceTitan Inc. price-consensus-eps-surprise-chart | ServiceTitan Inc. Quote
Total operating expenses of $163.6 million increased 17.9% year over year due to elevated research and development (up 17.8% year over year), sales and marketing (up 16.6% year over year) and general and administrative expenses (up 20.5% year over year).
Non-GAAP operating income was $21.5 million compared with $1.6 million in the year-ago quarter.
ServiceTitan’s Balance Sheet Remains Strong
As of Oct. 31, 2025, ServiceTitan had cash, cash equivalents and restricted cash of $493.2 million.
Free cash flow was $37.7 million compared with $10.6 million in the year-ago quarter.
ServiceTitan Offers Q4 and Fiscal 2026 Guidance
For the fourth quarter of fiscal 2026, ServiceTitan expects total revenues in the $244 million to $246 million range.
The company expects the operating income to be in the range of $16 million to $17 million.
For fiscal 2026, revenues are expected to be between $951 million and $953 million.
The company expects the operating income to be in the $83 million to $84 million range.
Zacks Rank & Stocks to Consider
Currently, ServiceTitan carries a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Digital Turbine (APPS - Free Report) and Amphenol (APH - Free Report) are some top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each of the three sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries shares have returned 90.3% in a year. The Zacks Consensus Estimate for Advanced Energy Industries' 2025 earnings is pegged at $6.23 per share, up 9.7% over the past 30 days, implying growth of 68% from the year-ago quarter’s reported figure.
Digital Turbine shares have jumped 248.3% in a year. The Zacks Consensus Estimate for APPS’ fiscal 2026 earnings is pegged at 33 cents per share, unchanged over the past 30 days, suggesting a 5.7% decline from fiscal 2025.
Amphenol shares have appreciated 92.9% in a year. The Zacks Consensus Estimate for Amphenol’s 2025 earnings has increased 2.2% to $3.29 per share in the past 30 days, indicating year-over-year growth of 74.1%.