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ServiceTitan Report Finds Commercial Contractors Prioritizing Profitability and AI Adoption

Cash flow ranks ahead of customer acquisition as a contractor goal, while 96% wait at least 15 days for payment.

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ServiceTitan (TTAN) released its 2026 Commercial State of the Trades report on September 24, drawing on 1,020 survey respondents.

Among surveyed commercial service firms, 62% had piloted or deployed AI, while 33% were actively using it or had embedded it across their businesses. AI was a top technology priority for 33% in 2026, up from 15% in 2025. Among contractors using AI, 59% reported a positive impact, but 15% reported a significant positive impact with clear return on investment.

Cash flow was a top-three business goal for 40% of contractors, up from 28% in 2025; 42% prioritized increasing net profit margins. Although 82% sent invoices within three days of completing work, 96% waited at least 15 days for payment. Tariffs had materially affected 73% of contractors’ businesses over the past year. Thrive Analytics fielded the online survey July 10–28, 2026.

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Key Figures

Firms piloting or deploying AI: 62% Firms actively using or embedding AI: 33% AI as a top technology priority: 15% in 2025; 33% in 2026 +5 more
Firms piloting or deploying AI
62%
2026 Commercial State of the Trades report
Firms actively using or embedding AI
33%
2026 Commercial State of the Trades report
AI as a top technology priority
15% in 2025; 33% in 2026
Commercial service firms
AI users reporting positive impact
59%
Among contractors using AI
AI users reporting significant positive impact with clear ROI
15%
Among contractors using AI
Contractors ranking cash flow among top three goals
40%; 28% in 2025
Commercial contractors
Contractors ranking net profit margins first
42%
Commercial contractors
Contractors reporting material tariff impact
73%
Over the past year

Key Terms

roi, predictive maintenance
2 terms
roi financial
"just 15% report a significant positive impact with clear ROI."
Return on investment (ROI) measures how much money an investor makes or loses relative to the amount they put in, expressed as a percentage. It helps compare the efficiency of different investments—like checking which of several gardens produced the most fruit for the seeds planted—so investors can decide which opportunities deliver the best payoff for the risk and capital they commit.
View in glossary
predictive maintenance technical
"scheduling and dispatch (37%) and predictive maintenance (31%)"
Predictive maintenance involves using data and technology to monitor equipment or machinery in real time, identifying potential problems before they cause failures or breakdowns. By predicting when maintenance is needed, it helps prevent costly repairs and downtime. For investors, it highlights how companies can reduce expenses, improve efficiency, and maintain reliable operations, which can positively impact financial performance.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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62% of Commercial Service Firms Have Piloted or Deployed AI as Technology Becomes an Increasing Business Priority

LOS ANGELES, Sept. 24, 2026 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today released its 2026 Commercial State of the Trades report. Based on a survey of more than 1,000 commercial service contractors across the U.S., the findings reveal that contractors are increasingly prioritizing profitability and adopting AI to improve efficiency and drive business growth.

“Commercial contractors are navigating a more complex operating environment, and the findings show just how focused they are on building resilient, profitable businesses,” said Alex Kablanian, Senior Vice President and GM of Commercial & Construction at ServiceTitan. “Contractors are looking closely at how they can improve cash flow, strengthen recurring revenue, and make their teams more productive. Technology, including AI, has an important role to play in helping contractors operate more efficiently and turn the information they already have into better outcomes for their businesses and customers.”

AI adoption accelerates across commercial service businesses

Artificial intelligence continues to gain traction across the commercial service industry. Sixty-two percent of commercial service firms have piloted or deployed AI, while 33% are actively using it or have embedded it across their businesses. AI also rose from 15% in 2025 to 33% in 2026 as a top technology priority.

As adoption grows, contractors are increasingly focused on demonstrating measurable value. Among contractors using AI, 59% report a positive impact, but just 15% report a significant positive impact with clear ROI.

Looking ahead, contractors expect AI to have the greatest impact on scheduling and dispatch (37%) and predictive maintenance (31%), with additional opportunities across estimating, remote diagnostics, and customer inquiries.

Cash flow becomes a top business priority

As contractors look to protect profitability, improving cash flow has become an increasingly important priority. Forty percent of contractors now rank improving cash flow among their top three business goals, up from 28% in 2025, the largest year-over-year shift among contractors’ reported business goals. Increasing net profit margins ranks first at 42%, while acquiring new customers trails both at 29%.

While contractors are moving quickly to bill customers, collecting payment remains a challenge. Eighty-two percent send invoices within three days of completing work, yet 96% wait at least 15 days to receive payment and 30% wait more than 30 days.

Service agreements and existing customer relationships are also playing an important role in supporting profitable growth. Forty-six percent of contractors now have more than half of their commercial customers on service or maintenance agreements, up from 42% in 2025.

Contractors navigate evolving cost pressures

Commercial contractors continue to navigate cost pressures, with 73% reporting that tariffs have materially impacted their business over the past year. Rising material costs, labor shortages, and overhead expenses remain key concerns as contractors focus on protecting profitability.

Information gaps create challenges in the field

Access to critical information remains a challenge for technicians in the field, with 69% of contractors citing warranty coverage and agreement details as a top obstacle. Having the correct spare parts and access to equipment service histories also remain important challenges.

These findings underscore an opportunity for commercial contractors to better connect critical business and customer information with the technicians who need it in the field, helping teams arrive prepared, diagnose issues more efficiently, and complete work effectively.

To view the full findings and key takeaways, download ServiceTitan’s 2026 Commercial State of the Trades here.

About the research

The survey was conducted on behalf of ServiceTitan by Thrive Analytics, an independent third-party research provider and a leading digital marketing research firm, polling 1,020 commercial owners, executives and general managers, primarily in mechanical, electrical and plumbing, who primarily perform work on commercial buildings. The survey was fielded online from July 10 to July 28, 2026. This research is for informational purposes only and ServiceTitan provides no assurances (express or implied) with respect to the accuracy of the survey data. Forward-looking economic and industry outlooks represent the views of the survey respondents, and may not represent the view of ServiceTitan or its affiliates. Forward-looking statements are subject to risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied.

About ServiceTitan

ServiceTitan is AI for the trades — a purpose-built agentic operating system designed to automate the workflows that run a contracting business, from enterprise commercial construction to residential field service, exteriors and beyond. The company’s end-to-end solution gives contractors the tools they need to run and grow their business, while providing a stellar customer experience. Learn how ServiceTitan is equipping tradespeople with the AI technology they need to keep the world running at: www.servicetitan.com

© 2026 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

Press Contact

Max Wertheimer 
ServiceTitan, Inc.
Press@servicetitan.com


FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did ServiceTitan’s 2026 commercial contractor report find about AI adoption?

62% of commercial service firms had piloted or deployed AI, while 33% were actively using it or had embedded it across their businesses. Among contractors using AI, 59% reported a positive impact, but 15% reported a significant positive impact with clear return on investment.

How was ServiceTitan’s 2026 Commercial State of the Trades survey conducted?

Thrive Analytics conducted the online survey for ServiceTitan from July 10 to July 28, 2026. It polled 1,020 commercial owners, executives and general managers, primarily in mechanical, electrical and plumbing, who primarily work on commercial buildings.

What field information obstacles did ServiceTitan’s 2026 report identify?

69% of contractors cited access to warranty coverage and agreement details as a top obstacle for field technicians. Having the correct spare parts and access to equipment service histories were also identified as challenges.

How common were service agreements in ServiceTitan’s 2026 contractor report?

46% of contractors had more than half of their commercial customers on service or maintenance agreements, up from 42% in 2025.

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