ServiceTitan (TTAN) Q2 Results Show AI Adoption Driving Growth
ServiceTitan reported strong second-quarter results in FY2027, with revenue rising 21% year-over-year to $292.8 million and subscription revenue increasing by 22%. The company's Max operating system is central to its strategy for integrating agentic AI into field-service workflows, which has led to a doubling of Virtual Agent call volume and over 30 native capabilities now available on the platform. The firm exceeded expectations in enrolling locations onto Max, with projections exceeding 700 by year-end. Non-GAAP operating income rose significantly to $44.4 million, while free cash flow increased by 47% to $50.5 million. Management raised FY2027 incremental margin guidance and expects continued growth from AI adoption across customer operations. Despite softer transaction trends affecting gross transaction value (GTV), ServiceTitan's focus on vertical integration of AI is seen as a competitive advantage over broader platforms like Salesforce’s Field Service offering.
Topics: AI adoption FCF Max platform operating income revenue growth