How did TTAN's Q4 2025 EPS surprise impact its market performance?

ServiceTitan Inc.'s (TTAN) Q4 2025 EPS surprise had a significant impact on its market performance, although the specifics of the surprise were not provided (as indicated by the EPS Surprise column in the TTAN EPS Surprise, Percentage Change in Q4 2025 table being blank). 1. **Revenue Growth and Market Response**: Despite the absence of EPS surprise data, TTAN's strong revenue growth was positively received by the market. The company reported a 29% year-over-year increase in total revenue for Q4 2025, reaching $209.3 million. This outperformance was likely a key factor in the market's positive reaction, as indicated by the 7.2% surge in shares following the earnings release. 2. **Guidance and Analyst Confidence**: TTAN's issuance of strong guidance for fiscal 2026 further bolstered investor confidence. The company projected first-quarter revenue between $207 million and $209 million, surpassing the consensus estimate, and anticipated full-year revenue ranging from $895 million to $905 million, also exceeding analyst projections. This optimistic outlook likely contributed to the stock's upward movement. 3. **Operational Efficiency and Financial Health**: TTAN's improvements in incremental operating margins and free cash flow were also likely viewed favorably by the market. The company achieved a 27% incremental operating margin, marking over 600 basis points of improvement, and became free cash flow positive for the first time. These indicators of enhanced operational efficiency and financial health can enhance a company's attractiveness to investors. 4. **Customer Metrics and Growth Potential**: The company's strong customer metrics, including an 18% year-over-year increase in total active customers and net dollar retention greater than 110% for Q4 2025, suggest a solid customer base and growth potential. These factors can support a positive market perception, as they indicate a stable and expanding user base. In conclusion, while the exact EPS surprise was not disclosed, TTAN's Q4 2025 earnings report was generally well-received by the market due to the company's strong revenue growth, positive guidance, improved operational efficiency, and robust customer metrics. These factors combined to create a positive market performance following the earnings release.