Do You Have Conviction in the Durability of ServiceTitan's (TTAN) Profit Cycle

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered -0.37%, and the Institutional Class, APHMX, delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Continued strength in information technology (IT) and health care contributed to the performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like ServiceTitan, Inc. (NASDAQ:TTAN). Based in Glendale, California, ServiceTitan, Inc. (NASDAQ:TTAN) is a leading end-to-end cloud-based software platform provider. On February 23, 2026, ServiceTitan, Inc. (NASDAQ:TTAN) stock closed at $62.73 per share. One-month return of ServiceTitan, Inc. (NASDAQ:TTAN) was -33.51%, and its shares lost 34.91% over the past 52 weeks. ServiceTitan, Inc. (NASDAQ:TTAN) has a market capitalization of $5.874 billion.

Artisan Mid Cap Fund stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its fourth quarter 2025 investor letter:

"We also added to ServiceTitan, Inc. (NASDAQ:TTAN), MongoDB and Waters during the quarter. ServiceTitan is a leading provider of vertical software solutions for the trades, including plumbing, HVAC and electrical. Its platform supports the entire workflow from lead generation to payment, generating revenue through subscriptions and usage-based processing. We see meaningful growth opportunities through new customer acquisition, upselling and expansion into additional trades. During the quarter, we increased our position following a pullback amid broader software industry weakness, reflecting our conviction in the durability of its profit cycle."

ServiceTitan, Inc. (NASDAQ:TTAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held ServiceTitan, Inc. (NASDAQ:TTAN) at the end of the fourth quarter, compared to 48 in the previous quarter. In the third quarter of fiscal 2026 ServiceTitan, Inc. (NASDAQ:TTAN) reported revenue of $249.2 million grew 25% year over year. While we acknowledge the potential of ServiceTitan, Inc. (NASDAQ:TTAN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered ServiceTitan, Inc. (NASDAQ:TTAN) and shared a list of oversold software stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.