ServiceTitan, the software platform that powers the trades, has 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%), 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.