Revenue Climbs 21% to $254 Million, Beating Estimates
ServiceTitan (NASDAQ: TTAN) reported robust financial results for its fourth quarter ending January 31, 2026, with total revenue reaching $254.0 million. This marks a 21% increase from the $209.3 million recorded in the same period last year and comfortably surpassed the analyst consensus estimate of $245.48 million. The strong performance propelled the company's annualized revenue run rate beyond the $1 billion milestone, a key achievement highlighted by management.
The company's bottom line showed even more impressive growth. Non-GAAP earnings per share came in at $0.27, a 125% improvement from $0.12 a year ago and a 50% beat on the Zacks Consensus Estimate of $0.18 per share. While the company still posted a GAAP net loss of ($0.44) per share, this was a significant improvement from the ($2.80) per share loss in the prior-year quarter, indicating a clear path toward GAAP profitability.
Operating Margin Triples as Free Cash Flow Soars
The strong top-line growth was amplified by significant gains in operational efficiency. ServiceTitan's non-GAAP income from operations for the quarter was $27.1 million, nearly quadrupling from $6.9 million in the fourth quarter of 2025. This translated to a non-GAAP operating margin of 10.7%, more than triple the 3.3% margin reported a year earlier.
This efficiency drove a substantial increase in cash generation. The company reported non-GAAP free cash flow of $35.4 million for the quarter, a 228% increase from $10.8 million in the same period last year. The growth is supported by an expanding customer base, which grew to approximately 10,800 active customers from about 9,500 a year ago, alongside a net dollar retention rate greater than 110%.
Our vision and mission from the beginning have been simple: to inflect our customers' revenue and margins by automating their operations. I am deeply proud to surpass a $1B annualized revenue run rate and to see our vision unfold faster than we ever could have imagined.
— Ara Mahdessian, Co-Founder and CEO.
ServiceTitan Guides For Over $1.1 Billion in FY2027 Revenue
Looking ahead, ServiceTitan issued an optimistic forecast for its fiscal year 2027. The company projects total revenue to be in the range of $1.11 billion to $1.12 billion. It also expects non-GAAP income from operations to reach between $128 million and $133 million, suggesting continued margin expansion.
The positive results and strong guidance support the bullish stance held by many analysts. Based on targets from 17 analysts, the average one-year price target for TTAN stood at $129.42 before the announcement, implying a potential upside of over 66% from its recent price of $77.92. The average brokerage recommendation for the stock is currently an "Outperform".
