Down 37% In Last 12 Months, Can ServiceTitan Stock Deliver Better Returns in 2026?

Key Takeaways:

• AI-Driven Growth: ServiceTitan is automating trade workflows with its MAX program, targeting enterprise-scale contractors across HVAC, plumbing, and commercial services.
• Price Projection: Based on current execution, TTAN stock could reach $79 by January 2028.
• Potential Gains: This target implies a total return of 27% from the current price of $62.74.
• Annual Return: Investors could see roughly 13% growth over the next 2 years.

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ServiceTitan (TTAN) delivered a solid third quarter in fiscal 2026, posting 26% subscription revenue growth and 25% total revenue growth alongside record free cash flow.

CEO Ara Mahdessian highlighted how the company’s growth formula remains consistent: deliver real ROI to customers, help them grow their businesses, and drive more revenue through increased subscriptions and usage.

• The company’s newest innovation, the MAX program, represents the next evolution of ServiceTitan by bringing AI-powered automation to trade contractors at scale.
• The company now serves over 7,000 contractors, including major players such as Wrench Group, which operates in 14 states and serves 2.5 million end customers annually.
• ServiceTitan’s platform processed $21.7 billion in gross transaction volume during Q3, representing 22% year-over-year growth.
• This growth was led by commercial contractors and diversified across multiple trades beyond just residential HVAC.
• The company’s Pro products continue driving subscription revenue growth.
• New offerings like Field Pro extend AI capabilities directly to technicians, while virtual agents automate work across the entire product portfolio.
• At the center sits Atlas, ServiceTitan’s agentic command center that combines large language models with deep workflow intelligence.

Despite strong fundamentals and expanding market opportunity, ServiceTitan trades at $62.74, offering upside for investors who recognize the company’s position in critical trade automation infrastructure.

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What the Model Says for ServiceTitan Stock

We analyzed ServiceTitan’s transformation into the leading operating system for trade contractors. The company benefits from multiple demand drivers across both residential and commercial markets.

In residential, contractors are deploying AI-powered tools to handle everything from call booking to dispatch optimization.

Commercial contractors show even stronger growth potential, with ServiceTitan recently introducing commercial CRM and construction management capabilities that complete the end-to-end platform.

The MAX program provides additional upside. This agentic workflow system delivers what only ServiceTitan can offer: deep comprehension of contractor data combined with automated actions that optimize for revenue and profit rather than incomplete metrics like lead volume.

Management expects continued momentum as the trade industry reaches a turning point. Contractors backed by private equity are particularly aggressive adopters, growing 500 basis points faster than non-sponsored businesses while utilizing Pro products more extensively.

Using a forecast of 17.8% annual revenue growth and 10.5% operating margins, our model projects the stock will rise to $79 within 2 years. This assumes a 59.4x price-to-earnings multiple.

That represents compression relative to ServiceTitan’s historical P/E average of 166.3x (one-year). The lower multiple acknowledges the company’s transition from a high-growth startup to a scaled software provider.

The real value lies in capturing long-term automation demand across trade markets while expanding the high-margin Pro product business. With network effects strengthening as more contractors join the ecosystem, ServiceTitan is building durable competitive advantages.

Our Valuation Assumptions

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Our Valuation Assumptions

TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.

Here’s what we used for TTAN stock:

1. Revenue Growth: 17.8%

ServiceTitan’s growth centers on structural demand for trade automation.

• The company delivered 26% subscription revenue growth in Q3, with usage revenue growing 24%, driven by higher fintech adoption.
• Management expects this momentum to continue as contractors embrace AI automation.
• The MAX program launched with 50 pilot customers and hundreds more in the backlog, signaling strong market demand for comprehensive workflow automation.
• Recent wins like Galaxy Service Partners and James River Air Conditioning demonstrate ServiceTitan’s expanding reach across both new and established trade verticals.

2. Operating margins: 10.5%

ServiceTitan delivered 8.6% operating margin in Q3, improving 780 basis points year-over-year.

This performance reflects steady revenue growth complemented by disciplined expense management.

Management targets a 25% increase in margins while maintaining investments in R&D priorities and hiring plans.

The company sees continued margin expansion opportunities as it scales the platform and improves operating leverage.

3. Exit P/E Multiple: 59.4x

The market values ServiceTitan at 62.1x earnings. We assume the P/E will compress to 59.4x over our forecast period as the company matures and revenue growth moderates from current levels.

As ServiceTitan demonstrates execution across its global contractor base and proves the value of its AI-driven automation platform, the company should command a premium multiple within the vertical software category.

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What Happens If Things Go Better or Worse?

Trade software companies face technology transitions and market adoption cycles. Here’s how ServiceTitan stock might perform under different scenarios through January 2030:

• Low Case: If revenue growth slows to 13.5% and net income margins compress to 8.9%, investors still see an 18% total return (4.4% annually).
• Mid Case: With 15% growth and 9.5% margins, we expect a total return of 62% (12.9% annually).
• High Case: If AI automation adoption accelerates, driving 16.5% revenue growth while ServiceTitan maintains 10% margins, returns could hit 116% total (21.5% annually).

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The range reflects execution on AI product development, successful expansion in commercial markets, and ServiceTitan’s ability to maintain leadership as the operating system for trade contractors.

How Much Upside Does ServiceTitan Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

• Revenue Growth
• Operating Margins
• Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!