2Q26 Vertical Software Preview: Strong Moats, Uneven Journeys – Prefer TOST & TTAN

研报英文原文证据摘录

2Q26 Vertical Software Preview: Strong Moats, Uneven Journeys – Prefer TOST & TTAN

Idea

July 28, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMSoftware | North America Josh Baer, CFA

Equity Analyst

2Q26 Vertical Software Josh.Baer@morganstanley.comKathleen A Keyser +1 212 761-4223

Research Associate

Katie.Keyser@morganstanley.com +1 212 761-0518

Preview: Strong Moats, Uneven Ryan Lountzis

Ryan.Lountzis@morganstanley.com +1 212 761-3189

Journeys – Prefer TOST & TTAN Chris Quintero

Chris.Quintero@morganstanley.com +1 212 761-1686

Vertical Software Moats are holding up, but Journeys diverge. Meryl R Thomas, CFA

Toast & ServiceTitan rank highest on Journeys. For Q2, prefer EquityMeryl.Thomas@morganstanley.comAnalyst +1 212 761-0774

TOST on best-in-class execution, durable recurring GP growth

Software

and upside to guidance. TTAN remains our Top Pick. CCC/VIA's North America

strong moats come w/ more mixed NT setups. Industry View AttractiveMMoats Holding Up, Journeys More Mixed; TOST Has the Best Near-Term Setup,

While TTAN Remains Our Top Pick. Vertical Software performed well on the Moat

ranking portion of our MS Software framework – see Software: The Moat & The

Journey – Assessing Software Durability + Growth in the Age of AI (21 Jul 2026) –

but more uneven on Journey rankings, reinforcing that strong competitive

advantages are necessary but not sufficient – near-term outperformance also

requires a credible path to durable growth and positive revisions. TTAN & TOST fit

this criteria well – TOST offers the most attractive Journey among the names in this

preview, with best-in-class execution. A stable restaurant demand backdrop, durable

recurring GP growth and continued operating leverage and financial results ahead of

guidance/consensus should support shares.