ServiceTitan stock falls 30% on weaker growth guidance

ServiceTitan's stock fell 30% on September 8, erasing more than $2 billion in market value. The drop followed guidance for roughly 15% back-half growth, down from 25% a year earlier.

Investors sold despite a quarter that beat on most measures. That reaction makes ServiceTitan the clearest public example yet of an incumbent's AI transition landing as a growth deceleration instead of an expansion story.

Fiscal second-quarter revenue reached $292.8 million, up 21%, and usage revenue grew 24%, per SaaStr's analysis of the earnings. Free cash flow rose 47% to $50.5 million, and net dollar retention held above 110%.

Some of the guidance cut is a choice ServiceTitan made on purpose. The company doesn't bill customers for the first quarter of a Max contract, its agentic platform. That creates a stated $4 million to $5 million revenue drag spread across four to six quarters. It also redirected spending toward the buildout. R&D rose 38% while sales and marketing grew 10.7%, and the company pushed back its planned expansion into new trades.