Don't Believe the Hype: This Stock Could Survive the "SaaSpocalypse"

One of the biggest stories successful the exertion assemblage successful 2026 is the "SaaSpocalypse." This wide tech banal sell-off has been hitting well-known software-as-a-service (SaaS) companies similar Salesforce, Adobe, and Microsoft.

Investors fearfulness that almighty caller artificial quality (AI) tools could disrupt the endeavor bundle industry. The premise is simple: Companies won't request to bargain arsenic overmuch bundle oregon subscribe for arsenic galore spot licenses arsenic they utilized to due to the fact that they tin make their ain bundle with AI, oregon usage AI to nutrient akin results. If that's true, bundle companies are astir to go a batch little profitable.

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As a result, the iShares Expanded Tech-Software Sector ETF is present down 20% from wherever it traded a twelvemonth ago, adjacent arsenic the tech-heavy Nasdaq-100 scale is up 16%.

ServiceTitan (NASDAQ: TTAN) is 1 SaaS banal that mightiness not beryllium truthful susceptible to the SaaSpocalypse. The institution offers a specialized bundle level that handles back-office functions specifically for skilled trades businesses specified arsenic contractors, carpenters, and plumbers. Although ServiceTitan banal is down 39% successful the past twelvemonth and 41% twelvemonth to date, that sell-off seems overblown. Investors mightiness beryllium overreacting to AI hype and unfairly punishing the banal of a institution with a agleam future.

Here are a fewer large reasons wherefore ServiceTitan could bounce backmost from the SaaSpocalypse.

If AI is genuinely connected the verge of disrupting galore bundle companies' concern models, that menace is not showing up yet successful ServiceTitan's earnings. The institution reported beardown results for its fiscal 2025 3rd quarter, with 25% year-over-year gross growth. Its yearly gross tally complaint is astir $1 billion. And its non-GAAP (generally accepted accounting principles) operating borderline successful the astir caller 4th was 8.6%, up from 0.8% successful the prior-year period.

Like galore early-stage tech companies, ServiceTitan is not profitable yet. But for 4 consecutive quarters, the institution has besides grown its gross and beaten analysts' estimates connected net per share. Its net per stock estimates person grown steadily -- but the marketplace seems to beryllium undervaluing this banal due to the fact that of the broader communicative astir AI.

Here's the bull lawsuit for wherefore ServiceTitan won't beryllium disrupted by AI systems similar Anthropic's Claude Cowork: ServiceTitan makes bundle for an underserved niche marketplace of AI-proof commercialized operations -- HVAC companies, roofers, plumbers, operation firms, and different contractors providing residential and commercialized services. These businesses often conflict to find off-the-shelf bundle solutions that conscionable their unsocial needs.