ServiceTitan (TTAN) raised its fiscal 2027 guidance after reporting Q1 results that exceeded expectations across growth, profitability and cash flow metrics, reinforcing confidence in the company's growth trajectory, Morgan Stanley said in a Friday note.

The researchers said gross transaction value rose 23% year over year to $21.7 billion and revenue increased 25% to $268.8 million, both exceeding expectations, while a non-GAAP operating margin of 15.2% reflected stronger-than-expected operating leverage.

ServiceTitan raised its fiscal 2027 revenue guidance by $20 million to $1.13 billion to $1.14 billion and lifted its non-GAAP operating income outlook to $142 million to $147 million, with Morgan Stanley noting the increase exceeded the Q1 revenue beat, signaling confidence in demand durability, according to the report.

The company is well-positioned to benefit from deeper platform adoption, expansion into commercial markets, and increased use of AI in contractor workflows, supported by its proprietary data assets and integrated software platform, the report added.

Morgan Stanley maintained its overweight rating on the stock and raised its price target to $124 from $118.

Shares of ServiceTitan were up more than 15% in premarket trading.