ServiceTitan Stock Plummets on Weak Q3 Guidance

ServiceTitan shares experienced a significant decline on September 9, with the stock price falling sharply despite the company reporting second-quarter financial results that surpassed analyst expectations. Investors focused instead on a weaker-than-anticipated third-quarter revenue forecast and signs of decelerating growth. For the fiscal second quarter ended July 31, ServiceTitan reported revenue of approximately $292.8 million, a roughly 21% increase year over year. The company also posted non-GAAP adjusted earnings per share of $0.40, exceeding the consensus estimate of $0.35. Management highlighted strong demand for its agentic artificial intelligence operating system, Max, and reported over $50 million in adjusted free cash flow for the period. However, the company's outlook for the third quarter cast a shadow over the positive quarterly performance. ServiceTitan guided for fiscal Q3 revenue between $285 million and $287 million, a range that fell below the average analyst consensus of $288 million. This forward-looking guidance, combined with a slowdown in gross transaction volume growth, appeared to be the primary driver of investor concern.