In 2026, a tech stock sell-off known as the “SaaSpocalypse” is impacting major software-as-a-service companies like Salesforce, Adobe, and Microsoft. Investors are concerned that AI tools may disrupt the industry, leading to decreased profitability for software companies.

The iShares Expanded Tech-Software Sector ETF is down 20% from a year ago, contrasting with the Nasdaq-100 index’s 16% increase. However, ServiceTitan, a SaaS stock catering to skilled trades businesses, may be less vulnerable to the SaaSpocalypse.

ServiceTitan reported strong fiscal results, with 25% year-over-year revenue growth and an annual revenue run rate close to $1 billion. Despite the stock’s 39% drop in the past year, the company has consistently beaten earnings estimates, indicating potential for growth.

ServiceTitan’s niche market of trade operations, such as HVAC companies and contractors, may shield it from AI disruption. The company provides essential software solutions tailored to the unique needs of these businesses, ensuring continued relevance in the market.

Executives at ServiceTitan are embracing AI in their software platform, aiming to enhance functionality and profitability. Despite industry concerns about AI disruption, ServiceTitan is positioned to coexist with AI and remain a valuable asset for investors.

ServiceTitan’s resilience to AI disruption makes it an intriguing investment option. While not included in the top 10 stocks list by the Motley Fool Stock Advisor team, patient investors may find value in ServiceTitan’s ability to withstand industry changes and provide long-term returns.

Read more at Yahoo Finance: This Stock Could Survive the “SaaSpocalypse”