Tyler Technologies (TYL)
NYSE:TYL
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Tyler Technologies
(NYSE:TYL)
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Rating:75Outperform
Price Target:
$368.00
▲(7.41% Upside)
Action:ReiteratedDate:05/06/26
Strong financial performance (profitability, cash flow, and a notably de-risked balance sheet) is the primary support for the score. Offsetting that strength, technicals are weak with the stock below key moving averages and negative MACD, and valuation remains rich at ~45x earnings; the latest earnings call and corporate actions were constructive but not enough to fully counter the premium valuation and weak price trend.
Positive Factors
De‑risked balance sheet
Tyler’s materially reduced leverage and growing equity provide durable financial flexibility. Low net debt supports opportunistic buybacks, M&A and investment in cloud/AI while lowering insolvency risk, enabling multi-year execution of its SaaS transition without balance‑sheet strain.
Negative Factors
Flip timing uncertainty
Unpredictable conversion timing from on‑prem to SaaS creates durable variability in recurring revenue growth and margin realization. Because flips drive both ARR and long‑term margin expansion, uncertain cadence weakens near‑term visibility despite structural upside.
Read all positive and negative factors
Positive Factors
Negative Factors
De‑risked balance sheet
Tyler’s materially reduced leverage and growing equity provide durable financial flexibility. Low net debt supports opportunistic buybacks, M&A and investment in cloud/AI while lowering insolvency risk, enabling multi-year execution of its SaaS transition without balance‑sheet strain.
Read all positive factors
Tyler Technologies (TYL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.80B
Dividend YieldN/A
Average Volume (3M)458.26K
Price to Earnings (P/E)45.0
Beta (1Y)0.52
Revenue Growth8.68%
EPS Growth8.27%
CountryUS
Employees7,462
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)7.34
Shares Outstanding42,167,454
10 Day Avg. Volume485,153
30 Day Avg. Volume458,261
Financial Highlights & Ratios
PEG Ratio3.33
Price to Book (P/B)5.28
Price to Sales (P/S)8.39
P/FCF Ratio30.69
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue5.69
Enterprise Value/Gross Profit12.49
Enterprise Value/Ebitda26.46
Forecast
1Y Price Target
$440.81Price Target Upside28.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)12.53
Revenue Forecast (FY)$2.56B
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, in...
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 structu...
Tyler Technologies Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial tone: record revenues and recurring revenues, free cash flow more than doubling, improving operating margins from the cloud transition, a strategic acquisition (FTR) adding ~ $30M of revenue and expanding TAM, steady bookings and transaction wins, and measured progress on AI and cross-sell initiatives. The lowlights were largely timing, accounting/geography shifts (R&D capitalization), and recognition that AI and full SaaS financial benefits will ramp more slowly given public sector adoption patterns and flip cadence uncertainty. Overall the positives (record metrics, cash generation, strategic M&A, cloud momentum, and buybacks) materially outweigh the execution and timing caveats.Positive Updates
Record Revenues and Recurring Revenue Growth
Total revenues and recurring revenues reached new record highs in Q1 2026; company emphasized better-than-expected recurring revenue growth and durable public sector demand.
Negative Updates
AI Revenue and Ramp Are Early — Financial Impact Unclear
Management described AI as a tailwind but not yet a major near-term revenue driver; ramp expected to be slower given public sector adoption pace and much of the financial impact remains TBD.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenues and Recurring Revenue Growth
Total revenues and recurring revenues reached new record highs in Q1 2026; company emphasized better-than-expected recurring revenue growth and durable public sector demand.
Read all positive updates
Company Guidance
The company modestly raised its 2026 revenue guidance primarily to reflect the April 2026 acquisition of For The Record (FTR), which adds roughly $30 million of revenues to the full year (about 70% of FTR revenue is software) and a modest EPS contribution, and also to reflect first‑quarter outperformance—particularly in transaction revenue—and timing tweaks to when some bookings come online; the midpoint of maintenance revenue was lifted about 200 basis points, driven mostly by FTR. Management said there are no material changes to its underlying outlook (SaaS guide only modestly higher, with FTR and timing as the main drivers), reiterated that free cash flow more than doubled vs. last year’s Q1 but that full‑year free cash flow margin guidance is unchanged, and noted longer‑term targets remain intact (moving recurring revenue from ~88% toward 90%+, and free cash flow expected to exceed $1 billion by 2030). They also said flip activity (dollars) should be higher this year than last with peak flips expected in 2027–2029, ARR on flipped ACV grew ~10% year‑over‑year in Q1, and capital allocation includes opportunistic buybacks (2.5% of shares repurchased YTD at an average ~$315 with ~$650 million remaining under the authorization).Tyler Technologies Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
89
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.38B | 2.33B | 2.14B | 1.95B | 1.85B | 1.59B |
| Gross Profit | 1.08B | 1.03B | 876.13M | 786.47M | 722.50M | 664.79M |
| EBITDA | 512.21M | 505.54M | 466.47M | 392.63M | 388.01M | 328.12M |
| Net Income | 315.73M | 315.60M | 263.03M | 165.92M | 164.24M | 161.46M |
Balance Sheet | ||||||
| Total Assets | 4.80B | 5.64B | 5.18B | 4.68B | 4.69B | 4.73B |
| Cash, Cash Equivalents and Short-Term Investments | 346.35M | 1.10B | 767.98M | 175.88M | 210.89M | 361.47M |
| Total Debt | 47.96M | 675.96M | 638.37M | 696.89M | 1.05B | 1.39B |
| Total Liabilities | 1.24B | 1.94B | 1.79B | 1.74B | 2.06B | 2.41B |
| Stockholders Equity | 3.56B | 3.70B | 3.39B | 2.94B | 2.62B | 2.32B |
Cash Flow | ||||||
| Free Cash Flow | 687.73M | 637.53M | 604.10M | 327.43M | 331.30M | 316.14M |
| Operating Cash Flow | 704.65M | 653.54M | 624.63M | 380.44M | 381.45M | 371.75M |
| Investing Cash Flow | -70.35M | -222.49M | -67.61M | -76.96M | -172.53M | -2.09B |
| Financing Cash Flow | -1.02B | -160.37M | 22.21M | -311.84M | -344.24M | 1.42B |
Tyler Technologies Technical Analysis
Neutral
342.61
Price Trends
339.49
Positive
391.03
Negative
462.54
Negative
Market Momentum
-4.33
Negative
52.89
Neutral
81.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TYL, the sentiment is Neutral. The current price of 342.61 is above the 20-day moving average (MA) of 335.11, above the 50-day MA of 339.49, and below the 200-day MA of 462.54, indicating a neutral trend. The MACD of -4.33 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TYL.
Tyler Technologies Risk Analysis
Tyler Technologies disclosed 34 risk factors in its most recent earnings report. Tyler Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tyler Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.80B | 45.05 | 8.71% | ― | 8.68% | 8.27% | |
75 Outperform | $8.33B | 40.30 | 78.22% | ― | 4.78% | 1.30% | |
72 Outperform | $12.15B | 49.66 | 12.92% | ― | 23.72% | ― | |
72 Outperform | $16.67B | 18.04 | 11.74% | 1.17% | 7.46% | 0.44% | |
70 Outperform | $5.87B | 41.43 | 20.52% | ― | 12.08% | 9.49% | |
63 Neutral | $5.24B | 224.68 | -9.44% | ― | 17.29% | 38.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TYL
Tyler Technologies
327.25
-225.42
-40.79%
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SSNC
SS&C Technologies Holdings
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-10.03%
PCTY
Paylocity
109.03
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ESTC
Elastic
50.66
-32.19
-38.85%
Tyler Technologies Corporate Events
Executive/Board ChangesShareholder Meetings
Tyler Technologies Shareholders Approve Board, Pay and Auditor
Positive
May 5, 2026
On May 5, 2026, Tyler Technologies, Inc. held its annual meeting of stockholders, during which shareholders elected all nominated directors, including Glenn A. Carter, Margot L. Carter, Brenda A. Cline, Ronnie D. Hawkins, Jr., Cecil W. Jones, H. L...
Business Operations and StrategyM&A Transactions
Tyler Technologies Completes Acquisition of For The Record
Positive
Apr 20, 2026
On April 14, 2026, Tyler Technologies announced it has completed its previously disclosed acquisition of For The Record (FTR), a digital court‑recording pioneer, in an all‑cash transaction valued at approximately $212.5 million. For Th...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Tyler Technologies Launches New $200 Million Buyback Plan
Positive
Mar 13, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.