ServiceTitan Stock Plunges on Weak Guidance and Executive Departure

ServiceTitan (NYSE: TTAN) shares plummeted more than 17% in pre-market trading on September 9, after the company's weak forward guidance and a key leadership change overshadowed a second-quarter revenue beat.

Guidance Disappoints Investors

For its fiscal second quarter of 2027, ServiceTitan reported revenue of $292.8 million, surpassing the analyst consensus of $285.9 million and representing 21% year-over-year growth. However, the company's outlook for the third quarter spooked the market.

ServiceTitan guided for Q3 revenue between $285 million and $287 million. This forecast not only implies a sequential decline from the second quarter but also suggests a slowdown to mid-teens growth for the remainder of the fiscal year. The adjusted loss per share of $0.26 also narrowly missed the estimated $0.25 loss.

Slowing Growth and Leadership Change

Adding to investor concerns was a deceleration in a key operating metric. Gross Transaction Volume (GTV) grew 17% year-over-year to $26.8 billion, a slowdown of approximately 200 basis points from its recent trend, according to the September 8 report. Analysts from Canaccord specifically cited softer lead and job growth in the HVAC segment as a pressure point.

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The company also announced that Chief Revenue Officer Ross Biestman will be stepping away from his role. He will be succeeded by Rikus Pretorius, currently SVP of Worldwide Sales, beginning in the fourth quarter. The combination of a cautious outlook and a senior executive transition created significant uncertainty for investors.

Analyst Price Target Adjustments

Following the report, several Wall Street analysts adjusted their price targets, though they largely maintained positive long-term ratings:

• Canaccord lowered its price target to $90 from $105 but maintained a Buy rating.
• Wells Fargo trimmed its target to $105 from $115, keeping an Overweight rating.
• Needham held its Buy rating and $100 price target, acknowledging the underwhelming results but highlighting the company's strategic focus on its AI products as a future growth driver.

The pre-market selloff pushed the stock to $67.49, approaching the lower end of its 52-week range of $54.17 to $119.60.