ServiceTitan's stock plunged over 20% after reporting fiscal Q2 2027 results and issuing a weaker-than-expected Q3 2027 revenue outlook. Despite some positive non-GAAP metrics, the forward guidance appears to be the primary driver of the significant after-hours sell-off.
ServiceTitan (TTAN) experienced a sharp 20.25% decline in after-hours trading following its fiscal Q2 2027 earnings report. While the company showed year-over-year revenue growth (21%) and improved non-GAAP operating income and free cash flow, the key catalyst for the sell-off appears to be the fiscal Q3 2027 revenue outlook of $285 million to $287 million. This guidance likely fell short of market expectations, overshadowing the positive aspects of the Q2 performance. For traders, this indicates a significant short-term negative sentiment shift, suggesting that growth expectations for the immediate future are being re-evaluated. The long-term implications will depend on whether the company can meet or exceed its full fiscal year guidance and demonstrate continued growth in its cloud-based software for the trades.