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
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