Tyler Technologies (TYL) AI Stock Analysis

• Market Cap: $14.98B
• Dividend Yield: N/A
• Average Volume (3M): 881.11K
• Price to Earnings (P/E): 62.0
• Beta (1Y): 0.58
• Revenue Growth: 10.62%
• EPS Growth: 31.43%
• Country: US
• Employees: 7,462
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.64
• Shares Outstanding: 42,985,340
• 10 Day Avg. Volume: 545,154
• 30 Day Avg. Volume: 881,110
• PEG Ratio: 3.33
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 8.39
• P/FCF Ratio: 30.69
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 6.19
• Enterprise Value/Gross Profit: 13.87
• Enterprise Value/Ebitda: 27.52
• 1Y Price Target: $443.55
• Price Target Upside: 27.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 12.54
• Revenue Forecast (FY): $2.53B

• Rating: 71 Outperform
• Price Target: $382.00 ▲(9.63% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

Score is supported primarily by strong financial performance (revenue growth, profitability, free cash flow, and low leverage) and a generally positive FY2026 outlook from the earnings call. It is held back by weak technical momentum (price below key moving averages and negative MACD) and a high P/E valuation, with corporate actions (buybacks and the FTR deal) providing a modest positive offset.

Positive Factors

SaaS & recurring revenue momentum

Sustained double-digit SaaS and subscription growth increases predictable, high-margin recurring revenue, reducing reliance on one-time license sales. That improves revenue visibility, supports higher gross margins over time, and enables multi-year customer relationships and upsell economics.

Strong free cash flow and liquidity

Robust free cash flow and a large cash/investment balance underpin durable capital allocation choices—buybacks, M&A, and R&D—while funding operations without excessive external financing. Consistent FCF near net income signals high earnings quality and long-term self-funding capacity.

Strategic AI-enabled M&A (FTR)

Acquiring FTR embeds legal-grade speech-to-text and real-time transcription into Tyler's courts suite, expanding proprietary capabilities used across US courts. This deepens product differentiation, addresses court reporter shortages, and creates cross-sell synergies that strengthen long-term competitive positioning.

Negative Factors

Lumpy bookings cadence

Persistent lumpiness in bookings and large multi-year deals make revenue recognition uneven and can mask demand trends. For planning and margins, irregular booking timing increases forecasting risk, complicates capacity planning for services, and can create noisy short-term performance swings.

Margin volatility and services mix

Shifts between higher-margin SaaS and lower-margin services/licenses produce margin variability. Continued reliance on services and hardware deliveries, plus deliberate limits on low-margin services growth, mean operating margin expansion is contingent on sustained SaaS mix improvement and efficiency gains.

Concentration on government contracts & lapping risk

Heavy exposure to large government contracts creates concentration risk and timing/renewal sensitivity. Contract wind-downs or disputes can subtract material revenue and distort comparisons; budget cycles and procurement timing amplify multi-quarter revenue variability for mission‑critical public-sector deals.

Tyler Technologies Business Overview & Revenue Model

Company Description

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. The company operates in three segments: Enterprise Software; Appraisal and Tax; and NIC. It offers financial management solutions, including modular fund accounting systems for government agencies or not-for-profit entities; utility billing systems for the billing and collection of metered and non-metered services; products to automate city and county functions, such as municipal courts, parking tickets, equipment and project costing, animal and business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management; and student information and transportation solutions for K-12 schools. The company also provides a suite of judicial solutions comprising court case management, court and law enforcement, prosecutor, and supervision systems to handle multi-jurisdictional county or statewide implementations, and single county systems; public safety software solutions; systems and software to automate the appraisal and assessment of real and personal property, as well as tax applications for agencies that bill and collect taxes; planning, regulatory, and maintenance software solutions for public sector agencies; software applications to enhance and automate operations involving records and document management; and data and insights solutions. In addition, it offers software as a service arrangements and electronic document filing solutions for courts and law offices; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. The company has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. Tyler Technologies, Inc. was founded in 1966 and is headquartered in Plano, Texas.

How the Company Makes Money

Tyler Technologies makes money primarily by selling and supporting software for government agencies, with revenue driven by a mix of recurring and services-based streams. The core revenue model centers on (1) software revenue, increasingly structured as subscription/SaaS arrangements that generate recurring fees over the contract term, and also including term and (where applicable) perpetual licensing; (2) maintenance/support and related recurring fees tied to deployed software, including ongoing product support, updates, and customer success services; and (3) professional services such as implementation, configuration, data conversion/migration, integration, training, and consulting, which are often sold alongside new software wins and modernization projects. In addition, Tyler earns revenue from transaction-based digital government and payments-related offerings where citizens or businesses interact with government services online (e.g., online payments, permitting, and other e-services), generating usage- or transaction-driven fees depending on the specific solution and contract structure. Many customer relationships are long-term due to high switching costs and the mission-critical nature of government systems, supporting renewals, expansions (adding modules/users/agencies), and cross-selling across Tyler’s product suite. Specific material partnership terms or revenue splits are not publicly detailed at a level that can be stated universally across all offerings; therefore, partnership-specific economics: null.

Tyler Technologies Financial Statement Overview

Summary

High-quality fundamentals: accelerating revenue, improving profitability, strong free cash flow, and a conservatively levered balance sheet (very low debt-to-equity). Main offsets are uneven margin progression and some variability in cash conversion.

Income Statement

TYL shows strong top-line momentum with revenue up meaningfully over time and accelerating in TTM (Trailing-Twelve-Months). Profitability is solid and improving versus the 2022–2023 period, with net margin rising to ~13.5% in TTM and EBIT margin holding in the low-teens. The main drawback is margin volatility: gross margin improved in TTM versus recent years, but remains below the 2020 peak, and operating margins have fluctuated rather than expanding steadily.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity is ~0.11 in TTM (Trailing-Twelve-Months), down materially from 2021–2022 levels, indicating improved financial flexibility. Equity has increased significantly over the period, supporting stability. Returns on equity are healthy and consistent (~7–8% recently), though not exceptional for a software company and slightly below earlier highs, suggesting profitability improvements haven’t fully translated into higher returns.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are strong and free cash flow is near net income in TTM (Trailing-Twelve-Months), indicating good earnings quality. Free cash flow growth is also very strong in TTM after more modest or negative growth in parts of 2021–2023. A watch item is the softer cash conversion versus revenue in TTM, with operating cash flow representing a smaller share of revenue than in 2024, implying some working-capital or timing headwinds.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.33B	2.14B	1.95B	1.85B	1.59B
Gross Profit	1.03B	876.13M	786.47M	722.50M	664.79M
EBITDA	505.54M	466.47M	392.63M	388.01M	328.12M
Net Income	315.60M	263.03M	165.92M	164.24M	161.46M
Balance Sheet
Total Assets	5.64B	5.18B	4.68B	4.69B	4.73B
Cash, Cash Equivalents and Short-Term Investments	1.10B	767.98M	175.88M	210.89M	361.47M
Total Debt	675.96M	638.37M	696.89M	1.05B	1.39B
Total Liabilities	1.94B	1.79B	1.74B	2.06B	2.41B
Stockholders Equity	3.70B	3.39B	2.94B	2.62B	2.32B
Cash Flow
Free Cash Flow	637.53M	604.10M	327.43M	331.30M	316.14M
Operating Cash Flow	653.54M	624.63M	380.44M	381.45M	371.75M
Investing Cash Flow	-222.49M	-67.61M	-76.96M	-172.53M	-2.09B
Financing Cash Flow	-160.37M	22.21M	-311.84M	-344.24M	1.42B

Tyler Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 348.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TYL, the sentiment is Negative. The current price of 348.45 is above the 20-day moving average (MA) of 346.53, below the 50-day MA of 377.03, and below the 200-day MA of 489.37, indicating a neutral trend. The MACD of -4.18 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TYL.

Tyler Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANH	73 Outperform	$8.42B	47.65	76.65%	―	4.10%	-0.21%
GWRE	72 Outperform	$13.81B	49.66	12.92%	―	22.80%	198.93%
TYL	71 Outperform	$14.98B	61.99	8.73%	―	10.62%	31.43%
PCTY	70 Outperform	$5.97B	41.43	20.52%	―	13.30%	2.80%
SSNC	68 Neutral	$17.54B	26.80	11.57%	1.17%	6.67%	21.21%
ESTC	63 Neutral	$5.73B	224.68	-9.44%	―	16.98%	-265.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tyler Technologies Corporate Events

Tyler Technologies Launches New $200 Million Buyback Plan

On March 13, 2026, Tyler Technologies, Inc. adopted a Rule 10b5-1 trading plan with a brokerage firm to repurchase up to $200 million of its common stock between March 16 and April 30, 2026. The plan operates under the company’s long-running share repurchase program, first launched in 2002 and most recently refreshed on February 3, 2026, when the board authorized up to $1 billion in buybacks and allowed the use of Rule 10b5-1 plans.

As of March 13, 2026, Tyler had $734.4 million of remaining repurchase capacity under this authorization, with buybacks generally funded from cash on hand and borrowings under its credit facility. By structuring the activity under Rule 10b5-1 and its insider trading policy, the company can execute prearranged repurchases even if it later comes into possession of material nonpublic information, providing a transparent and compliant mechanism for returning capital to shareholders.

The most recent analyst rating on (TYL) stock is a Buy with a $393.00 price target. To see the full list of analyst forecasts on Tyler Technologies stock, see the TYL Stock Forecast page.

Tyler Technologies Authorizes New $1 Billion Share Buyback

On February 4, 2026, Tyler Technologies announced that its board of directors had approved a new share repurchase plan authorizing the company to buy back up to $1 billion of its Class A common stock, effective immediately, replacing all prior repurchase authorizations. The open-ended plan, which does not require the company to repurchase a specific amount of shares and can be modified, suspended, or terminated at any time, may be executed in the open market or through other methods, including potential Rule 10b5-1 plans, and is positioned as a response to what management views as an undervaluation of the stock and as a means to return capital to shareholders while continuing to invest in long-term growth, signaling confidence in Tyler’s durable free cash flow generation and strategic outlook.

The most recent analyst rating on (TYL) stock is a Buy with a $403.00 price target. To see the full list of analyst forecasts on Tyler Technologies stock, see the TYL Stock Forecast page.

Tyler Technologies to Acquire Digital Court-Recording Firm FTR

On February 2, 2026, Tyler Technologies announced it had signed a definitive agreement to acquire For The Record (FTR), a digital court-recording pioneer founded in 1993, for approximately $212.5 million in cash, with closing expected in the first quarter of 2026 subject to customary conditions and regulatory approvals. The deal will fold FTR’s AI-powered, cloud-enabled courtroom recording and multilingual transcription platform—already used in all 50 U.S. states and major courts such as Los Angeles County Superior Court and the Superior Court of Arizona in Maricopa County—into Tyler’s Courts & Justice Division, with FTR’s management and staff joining that unit. By integrating FTR’s “legal grade” speech-to-text and real-time transcription with Tyler’s existing justice software, the company aims to create a unified, near real-time digital court record that enhances “judicial intelligence,” improves efficiency amid a shortage of court reporters, and strengthens Tyler’s competitive position as a provider of next-generation, AI-driven solutions to courts and justice agencies.

The most recent analyst rating on (TYL) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Tyler Technologies stock, see the TYL Stock Forecast page.