ServiceTitan Releases 2025 AI Industry Report, 46% of Contractors Adopt AI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy TTAN?
Source: Globenewswire
- Current AI Adoption: In a survey of over 1,000 contractors, 46% reported using or experimenting with AI, indicating a rapid industry shift towards AI adoption and its transformative potential, with expectations of significant industry changes within 1-3 years.
- Efficiency Enhancement Potential: 74% of contractors believe AI has immense potential to improve efficiency and productivity, which not only reduces operational costs but also enhances decision-making processes, thereby driving overall business performance improvements.
- Organizational Barriers: Despite positive perceptions of AI, 44% of contractors cite a lack of training and skilled staff as major barriers, highlighting the need for businesses to invest in employee training and tool integration to overcome these challenges and unlock AI's full potential.
- Preference for Embedded Tools: 59% of respondents indicated that the most commonly used type of AI is features embedded in existing software, suggesting that contractors prefer AI tools that integrate directly into their core workflows to enhance operational efficiency and business agility.
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Analyst Views on TTAN
Wall Street analysts forecast TTAN stock price to rise
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 61.180
Low
125.00
Averages
137.92
High
160.00
Current: 61.180
Low
125.00
Averages
137.92
High
160.00
About TTAN
ServiceTitan, Inc. is an end-to-end technology platform built for contractors to transform the performance of their businesses. The Company’s software provides an end-to-end, cloud-based software platform that connects and manages an array of business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more. The Company has designed its platform to address key workflows for trade businesses, including call tracking, scheduling, dispatching, end-customer communications, marketing automation, estimating, sales, inventory, and payroll integration. Its platform offers key benefits through three main offerings, including Core, FinTech and Pro products. Its core product offers base-level functionality across all key workflows. Customers access its platform through a Web browser and through a mobile application.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ServiceTitan's Resilience Amid SaaSpocalypse Threat
- Strong Revenue Growth: ServiceTitan reported a 25% year-over-year revenue increase in Q3 FY2025, with an annual revenue run rate nearing $1 billion, indicating robust performance despite broader market fears about AI disruption, showcasing its competitive strength in a niche market.
- Unique Market Positioning: By focusing on software solutions for HVAC, roofing, plumbing, and other skilled trades, ServiceTitan addresses a gap where off-the-shelf software often fails, providing scalable solutions that enhance operational efficiency and maintain a relative advantage against AI competition.
- Improving Profitability: Although not yet profitable, ServiceTitan's non-GAAP operating margin rose from 0.8% to 8.6% in the latest quarter, reflecting a significant improvement in profitability alongside revenue growth, which bolsters investor confidence in the company's future.
- AI Integration Prospects: Executives highlighted the incorporation of AI technologies into their software platform during the latest earnings call, indicating that ServiceTitan is not only unafraid of AI challenges but is actively leveraging AI to enhance product value, suggesting strong growth potential ahead.
See More
ServiceTitan Stock Down 41% Year-to-Date Despite Revenue Growth
- Consistent Revenue Growth: ServiceTitan has achieved a 25% year-over-year revenue growth over the past four quarters, with an annual revenue run rate nearing $1 billion, indicating strong fundamentals despite a 41% stock price decline year-to-date.
- Overblown Market Reaction: The stock has dropped 39% in the past year, but analysts believe the market's fear of AI disruption is overblown, potentially undervaluing the company's long-term growth prospects, especially in its niche market.
- AI Integration Potential: During the latest earnings call, ServiceTitan executives highlighted the incorporation of AI into their software platform, suggesting that the company is not afraid of AI competition and may leverage it to enhance product value and profitability.
- Unique Industry Focus: By catering specifically to HVAC, roofing, plumbing, and other service industries with tailored software solutions, ServiceTitan demonstrates resilience against AI disruption, positioning itself to maintain market share in the future.
See More
Software Sector Faces Worst Drawdown in a Decade
- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
See More
Microsoft's Stock Drop Weighs on S&P 500
- Microsoft's Performance Decline: Microsoft shares fell about 10% on Thursday, primarily due to high capital expenditures and underwhelming performance from its Azure cloud business, leading to concerns about future growth and dragging down the software sector, which fell approximately 7% that day.
- Apple's Earnings Reaction: Following its earnings report, Apple shares initially rose 4% but closed up only 1%, despite beating earnings and revenue estimates, indicating a cautious market sentiment towards tech stocks and investor concerns about future growth prospects.
- Strong Energy Stock Performance: ExxonMobil and Chevron both reached new highs, with respective gains of 20% and 10% over the past three months, driven by Brent crude futures rising above $70, fueled by market expectations of a potential U.S. military action against Iran.
- New CEOs in Retail Giants: Walmart and Target are set to welcome new CEOs, with Walmart shares up 5.4% in 2026 while Target is down 27% from its January 2025 peak, highlighting the mixed challenges and opportunities facing the retail sector.
See More
ServiceTitan vs BigBear.ai: Stock Performance Analysis
- Stock Performance Divergence: Over the past six months, ServiceTitan's stock has plummeted by 23.6%, while BigBear.ai has dropped 21.4%, starkly contrasting with the S&P 500's 9.8% gain, indicating a lack of investor confidence in both companies.
- Revenue and Profitability Issues: BigBear.ai reported a 20% year-over-year revenue decline in Q3, with gross margin contracting to 22.4%, and has faced losses for four consecutive years, highlighting its struggle to maintain profitability in a competitive landscape.
- ServiceTitan's Growth Potential: ServiceTitan achieved a remarkable 25% revenue growth in Q3 of fiscal 2026, reaching $249 million, and although still unprofitable, its adjusted operating margin improved from 0.8% to 8.6%, indicating strong business growth potential.
- Market Competition and Investor Sentiment: Despite ServiceTitan's rapid growth, investor sentiment remains cautious, with concerns that AI may diminish demand for SaaS companies, leading to stock pressure, even though its P/S ratio of 9.0 is more favorable than BigBear.ai's 12.3.
See More
ServiceTitan and BigBear.ai Recent Performance Analysis
- Revenue Growth Comparison: ServiceTitan's annual revenue has reached approximately $1 billion with a 25% growth in Q3, while BigBear.ai's revenue has declined by 20% year-over-year, highlighting a significant performance disparity between the two.
- Market Sentiment Impact: Despite the overall market rising, ServiceTitan's stock has fallen by 23.6% over the past six months, while BigBear.ai has dropped by 21.4%, reflecting investor concerns about the impact of AI on SaaS companies.
- Profitability Challenges: BigBear.ai has reported losses for four consecutive years and has missed analysts' earnings expectations in three out of the last four quarters, indicating ongoing challenges in achieving profitability.
- Sustainability of Business Model: ServiceTitan provides customized solutions for underserved industries, and despite perceived threats from AI, it is considered a strong business model with potential for higher stock prices in the future.
See More
ServiceTitan's Resilience Amid SaaSpocalypse Threat
- Strong Revenue Growth: ServiceTitan reported a 25% year-over-year revenue increase in Q3 FY2025, with an annual revenue run rate nearing $1 billion, indicating robust performance despite broader market fears about AI disruption, showcasing its competitive strength in a niche market.
- Unique Market Positioning: By focusing on software solutions for HVAC, roofing, plumbing, and other skilled trades, ServiceTitan addresses a gap where off-the-shelf software often fails, providing scalable solutions that enhance operational efficiency and maintain a relative advantage against AI competition.
- Improving Profitability: Although not yet profitable, ServiceTitan's non-GAAP operating margin rose from 0.8% to 8.6% in the latest quarter, reflecting a significant improvement in profitability alongside revenue growth, which bolsters investor confidence in the company's future.
- AI Integration Prospects: Executives highlighted the incorporation of AI technologies into their software platform during the latest earnings call, indicating that ServiceTitan is not only unafraid of AI challenges but is actively leveraging AI to enhance product value, suggesting strong growth potential ahead.
See More
ServiceTitan Stock Down 41% Year-to-Date Despite Revenue Growth
- Consistent Revenue Growth: ServiceTitan has achieved a 25% year-over-year revenue growth over the past four quarters, with an annual revenue run rate nearing $1 billion, indicating strong fundamentals despite a 41% stock price decline year-to-date.
- Overblown Market Reaction: The stock has dropped 39% in the past year, but analysts believe the market's fear of AI disruption is overblown, potentially undervaluing the company's long-term growth prospects, especially in its niche market.
- AI Integration Potential: During the latest earnings call, ServiceTitan executives highlighted the incorporation of AI into their software platform, suggesting that the company is not afraid of AI competition and may leverage it to enhance product value and profitability.
- Unique Industry Focus: By catering specifically to HVAC, roofing, plumbing, and other service industries with tailored software solutions, ServiceTitan demonstrates resilience against AI disruption, positioning itself to maintain market share in the future.
See More
Software Sector Faces Worst Drawdown in a Decade
- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
See More
Microsoft's Stock Drop Weighs on S&P 500
- Microsoft's Performance Decline: Microsoft shares fell about 10% on Thursday, primarily due to high capital expenditures and underwhelming performance from its Azure cloud business, leading to concerns about future growth and dragging down the software sector, which fell approximately 7% that day.
- Apple's Earnings Reaction: Following its earnings report, Apple shares initially rose 4% but closed up only 1%, despite beating earnings and revenue estimates, indicating a cautious market sentiment towards tech stocks and investor concerns about future growth prospects.
- Strong Energy Stock Performance: ExxonMobil and Chevron both reached new highs, with respective gains of 20% and 10% over the past three months, driven by Brent crude futures rising above $70, fueled by market expectations of a potential U.S. military action against Iran.
- New CEOs in Retail Giants: Walmart and Target are set to welcome new CEOs, with Walmart shares up 5.4% in 2026 while Target is down 27% from its January 2025 peak, highlighting the mixed challenges and opportunities facing the retail sector.
See More
ServiceTitan vs BigBear.ai: Stock Performance Analysis
- Stock Performance Divergence: Over the past six months, ServiceTitan's stock has plummeted by 23.6%, while BigBear.ai has dropped 21.4%, starkly contrasting with the S&P 500's 9.8% gain, indicating a lack of investor confidence in both companies.
- Revenue and Profitability Issues: BigBear.ai reported a 20% year-over-year revenue decline in Q3, with gross margin contracting to 22.4%, and has faced losses for four consecutive years, highlighting its struggle to maintain profitability in a competitive landscape.
- ServiceTitan's Growth Potential: ServiceTitan achieved a remarkable 25% revenue growth in Q3 of fiscal 2026, reaching $249 million, and although still unprofitable, its adjusted operating margin improved from 0.8% to 8.6%, indicating strong business growth potential.
- Market Competition and Investor Sentiment: Despite ServiceTitan's rapid growth, investor sentiment remains cautious, with concerns that AI may diminish demand for SaaS companies, leading to stock pressure, even though its P/S ratio of 9.0 is more favorable than BigBear.ai's 12.3.
See More
ServiceTitan and BigBear.ai Recent Performance Analysis
- Revenue Growth Comparison: ServiceTitan's annual revenue has reached approximately $1 billion with a 25% growth in Q3, while BigBear.ai's revenue has declined by 20% year-over-year, highlighting a significant performance disparity between the two.
- Market Sentiment Impact: Despite the overall market rising, ServiceTitan's stock has fallen by 23.6% over the past six months, while BigBear.ai has dropped by 21.4%, reflecting investor concerns about the impact of AI on SaaS companies.
- Profitability Challenges: BigBear.ai has reported losses for four consecutive years and has missed analysts' earnings expectations in three out of the last four quarters, indicating ongoing challenges in achieving profitability.
- Sustainability of Business Model: ServiceTitan provides customized solutions for underserved industries, and despite perceived threats from AI, it is considered a strong business model with potential for higher stock prices in the future.
See More
