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Tyler Technologies
(NYSE:TYL)
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Rating:79Outperform
Price Target:
$382.00
▲(28.55% Upside)
Action:Reiterated
Date:07/30/26
TYL scores well primarily on strong financial quality (solid margins, excellent cash conversion, and a strengthening, low-leverage balance sheet) and a positive earnings call with reaffirmed guidance, margin expansion expectations, and record bookings/free cash flow. The main offsets are a high valuation (P/E ~45) and only mixed technicals (strong short-term trend but still below the 200-day average).
Positive Factors
Recurring revenue & SaaS momentum
A very high recurring revenue mix (~87%) combined with sustained SaaS growth (21.7% y/y and 22 consecutive quarters of ≥20% SaaS growth) signals durable subscription economics. This supports predictable ARR, stronger customer retention, and a structural shift to recurring margins as cloud flips accumulate.
Negative Factors
SaaS revenue recognition lag
The structural delay from bookings to recognized SaaS revenue (often 1–2+ quarters for flips) means improvements in bookings and ACV can take multiple quarters to impact reported revenue and margins. This timing mismatch reduces near-term visibility and can produce persistent quarter-to-quarter volatility in reported results.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & SaaS momentum
A very high recurring revenue mix (~87%) combined with sustained SaaS growth (21.7% y/y and 22 consecutive quarters of ≥20% SaaS growth) signals durable subscription economics. This supports predictable ARR, stronger customer retention, and a structural shift to recurring margins as cloud flips accumulate.
Read all positive factors
Tyler Technologies Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks revenue into recurring versus one-time sales and services, highlighting the quality and predictability of the company’s income. A higher share of recurring revenue generally means smoother future cash flow and higher valuation multiples, while reliance on one-off deals or professional services can make results more volatile and lower-margin.
Breaks revenue into recurring versus one-time sales and services, highlighting the quality and predictability of the company’s income. A higher share of recurring revenue generally means smoother future cash flow and higher valuation multiples, while reliance on one-off deals or professional services can make results more volatile and lower-margin.
Data provided by:
The Fly
The FlyTyler Technologies (TYL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.68B
Dividend YieldN/A
Average Volume (3M)773.34K
Price to Earnings (P/E)40.6
Beta (1Y)0.49
Revenue Growth8.19%
EPS Growth6.70%
CountryUS
Employees7,800
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)7.63
Shares Outstanding40,952,274
10 Day Avg. Volume656,827
30 Day Avg. Volume773,336
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$419.44Price Target Upside41.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)13.08
Revenue Forecast (FY)$2.51B
Tyler Technologies Business Overview & Revenue Model
Company Description
Tyler Technologies, Inc. specializes in delivering comprehensive information management solutions and services tailored for the public sector. Its operations are organized into three primary divisions: Enterprise Software, Appraisal and Tax, and N...
How the Company Makes Money
Tyler Technologies primarily makes money by selling and supporting software used by government agencies, with revenue generally coming from (1) recurring software subscriptions and maintenance/support and (2) professional services tied to deployin...
Tyler Technologies Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call emphasized multiple company records (SaaS bookings, total bookings, Q2 free cash flow), strong SaaS revenue growth (21.7%), transaction momentum (+~10% excluding Texas), strategic M&A (FTR) and active capital returns (>5.5% shares repurchased YTD). Management reiterated margin expansion (~100 bps midpoint), controlled hiring and confidence in long-term cloud and AI-driven growth, while noting timing lags for SaaS recognition, AI revenue still early, some one-time margin items and lumpy timing on large cloud flips. Overall the positive operational and financial progress and multiple records materially outweigh the execution and timing risks discussed.Positive Updates
Strong SaaS Revenue Growth
SaaS revenue grew 21.7% year-over-year in the quarter, driven by record SaaS bookings and increased cloud adoption efforts.
Negative Updates
SaaS Revenue Recognition Lag
There is an inherent lag between bookings and SaaS revenue recognition (new deals and flips can take 1–2+ quarters to show up), so recent booking acceleration will take time to materialize in reported SaaS revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong SaaS Revenue Growth
SaaS revenue grew 21.7% year-over-year in the quarter, driven by record SaaS bookings and increased cloud adoption efforts.
Read all positive updates
Company Guidance
Management reaffirmed its full‑year outlook while expecting margins to expand (guidance midpoint implies roughly a 100 basis‑point improvement) with no material change to spending and only limited hiring in H2; operationally Q2 delivered 21.7% SaaS revenue growth, new SaaS ACV up ~22%, record SaaS bookings and record total bookings, record Q2 free cash flow (helped by about $30M less cash taxes YoY), acquisitions added roughly $11M to bookings while organic revenue was ~2 points below overall growth, transaction revenues (ex‑Texas) rose ~10%, share repurchases have reduced shares outstanding by over 5.5% YTD and a convertible debt offering was completed to enhance flexibility, and longer‑term targets include converting 85% of 2023 maintenance to the cloud by 2030 with AI revenue expected to become meaningful in the back half of 2027 (12–18 months).Tyler Technologies Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.43B | 2.33B | 2.14B | 1.95B | 1.85B | 1.59B |
| Gross Profit | 1.13B | 1.03B | 876.13M | 786.47M | 722.50M | 664.79M |
| EBITDA | 477.64M | 543.18M | 466.47M | 392.63M | 388.01M | 328.12M |
| Net Income | 324.62M | 315.60M | 263.03M | 165.92M | 164.24M | 161.46M |
Balance Sheet | ||||||
| Total Assets | 5.81B | 5.64B | 5.18B | 4.68B | 4.69B | 4.73B |
| Cash, Cash Equivalents and Short-Term Investments | 970.03M | 1.10B | 767.98M | 175.88M | 210.89M | 361.47M |
| Total Debt | 1.46B | 675.96M | 638.37M | 696.89M | 1.05B | 1.39B |
| Total Liabilities | 2.78B | 1.94B | 1.79B | 1.74B | 2.06B | 2.41B |
| Stockholders Equity | 3.04B | 3.70B | 3.39B | 2.94B | 2.62B | 2.32B |
Cash Flow | ||||||
| Free Cash Flow | 714.27M | 637.53M | 604.10M | 327.43M | 331.30M | 316.14M |
| Operating Cash Flow | 730.75M | 653.54M | 624.63M | 380.44M | 381.45M | 371.75M |
| Investing Cash Flow | -315.96M | -222.49M | -67.61M | -76.96M | -172.53M | -2.09B |
| Financing Cash Flow | -306.88M | -160.37M | 22.21M | -311.84M | -344.24M | 1.42B |
Tyler Technologies Technical Analysis
Neutral
297.15
Price Trends
304.90
Positive
318.88
Negative
373.73
Negative
Market Momentum
2.73
Negative
51.75
Neutral
40.13
Neutral
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 297.15 is below the 20-day moving average (MA) of 310.57, below the 50-day MA of 304.90, and below the 200-day MA of 373.73, indicating a neutral trend. The MACD of 2.73 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 40.13 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $12.68B | 40.58 | 8.71% | ― | 8.19% | 6.70% | |
79 Outperform | $11.32B | 54.36 | 85.23% | ― | 6.48% | -3.07% | |
78 Outperform | $7.38B | 29.09 | 22.36% | ― | 11.31% | 16.71% | |
77 Outperform | $6.84B | 18.56 | 37.43% | ― | 17.26% | ― | |
72 Outperform | $18.08B | 21.52 | 12.66% | 1.46% | 8.57% | 9.06% | |
68 Neutral | $12.65B | 80.39 | 10.99% | ― | 24.92% | 356.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TYL
Tyler Technologies
306.58
-305.18
-49.89%
GWRE
Guidewire
160.33
-65.24
-28.92%
MANH
Manhattan Associates
192.08
-23.91
-11.07%
SSNC
SS&C Technologies Holdings
79.17
-5.82
-6.85%
PCTY
Paylocity
147.81
-39.01
-20.88%
ESTC
Elastic
69.72
-10.92
-13.54%
Tyler Technologies Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Tyler Technologies Reports Strong Q2 Results, Expands Buybacks
Positive
Jul 29, 2026
On July 29, 2026, Tyler Technologies reported second-quarter 2026 results showing total revenue of $645.1 million, up 8.2% year-on-year, with recurring revenue comprising nearly 87% of the total and SaaS revenue jumping 21.7%, marking 22 straight ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Tyler Technologies Announces New $150 Million Share Repurchase
Positive
Jun 12, 2026
On June 12, 2026, Tyler Technologies, Inc. entered into a Rule 10b5-1 trading plan with a brokerage firm to repurchase up to $150 million of its common stock between June 16 and July 30, 2026, under its longstanding share repurchase program. The p...
Business Operations and StrategyPrivate Placements and Financing
Tyler Technologies Expands Liquidity With New $1B Credit Facility
Positive
May 29, 2026
On May 28, 2026, Tyler Technologies entered into an amended and restated unsecured revolving credit agreement providing up to $1 billion in financing, replacing its prior $700 million facility that had been scheduled to mature in September 2029. T...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Tyler Technologies Completes Upsized Convertible Notes Offering
Positive
May 14, 2026
On May 14, 2026, Tyler Technologies, Inc. closed an upsized private offering of $1.4375 billion of 0.50% Convertible Senior Notes due 2031, including the full exercise of the initial purchasers’ $187.5 million option, with the securities sol...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Tyler Technologies Announces Upsized Convertible Senior Notes Offering
Positive
May 12, 2026
On May 12, 2026, Tyler Technologies priced an upsized private offering of $1.25 billion in 0.50% convertible senior notes due 2031 to qualified institutional buyers under Rule 144A, with settlement expected on May 14 and an option for initial purc...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Tyler Technologies Announces $1 Billion Convertible Notes Offering
Positive
May 11, 2026
On May 11, 2026, Tyler Technologies announced plans to raise $1 billion through a private offering of convertible senior notes due 2031 to qualified institutional buyers under Rule 144A, with an option for initial purchasers to buy up to an additi...
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...
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.