ServiceTitan beats Q2 estimates as margins surge and FY27 profit guide rises

The quarter cleared expectations, but only narrowly on revenue. Published estimates clustered around roughly $291.7 million of revenue and $0.35-$0.36 of diluted non-GAAP EPS; ServiceTitan delivered $292.8 million and $0.40, respectively. That makes this a genuine beat, though the revenue upside was modest rather than a major demand surprise.

Profitability was the more meaningful upside. Non-GAAP operating income rose 52% year over year while the margin expanded to 15.2% from 12.1% (GAAP to Non-GAAP Reconciliation). The GAAP operating loss also narrowed to $27.6 million from $34.8 million (Income Statement). The improvement matters more than the small revenue beat because it shows operating leverage arriving even as growth slowed from 25% to 21%.

The growth profile softened, but customer retention remained stable. GTV growth decelerated to 17% from 19%, revenue growth slowed to 21% from 25%, and platform growth slowed to 22% from 26% (Financial Highlights). Net dollar retention stayed above 110%, so the filing does not show a retention deterioration; the main tension is simply slower expansion against a still-healthy base.

Management raised the full-year profitability outlook materially. Fiscal 2027 revenue guidance moved to $1.139-$1.144 billion from the prior $1.130-$1.140 billion range, while non-GAAP operating-income guidance increased to $152-$154 million from $142-$147 million. This is the clearest positive change in the filing: the company is now promising more profit despite only a modest revenue-guide increase.

Net: a beat led by execution and margins, not accelerating demand. The revenue result was roughly in line to slightly above consensus, but the EPS outperformance, cash flow, and higher full-year operating-income guide push the overall filing into Beat territory. The market still has to reconcile that improvement with decelerating GTV and revenue growth, but the balance of new information is better than expected.