Tyler Technologies (TYL)
NYSE:TYL
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Tyler Technologies
(NYSE:TYL)
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Rating:71Outperform
Price Target:
$382.00
▲(18.52% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Tyler Technologies (TYL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.62B
Dividend YieldN/A
Average Volume (3M)492.12K
Price to Earnings (P/E)62.0
Beta (1Y)0.53
Revenue Growth10.62%
EPS Growth31.43%
CountryUS
Employees7,462
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)2.64
Shares Outstanding42,453,700
10 Day Avg. Volume454,089
30 Day Avg. Volume492,120
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 Cap0.99
Enterprise Value/Revenue5.79
Enterprise Value/Gross Profit12.98
Enterprise Value/Ebitda25.75
Forecast
1Y Price Target
$437.69Price Target Upside35.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)12.54
Revenue Forecast (FY)$2.53B
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:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: strong recurring revenue growth (SaaS >20%), ARR up ~11%, record free cash flow and margin expansion, notable bookings momentum in flips, meaningful AI deployment traction, a $1B share repurchase authorization and strategic M&A activity. Offsetting items included a one-time contract reserve that reduced Q4 reported results (no cash impact), the wind-down/shortfall from a Texas payments contract, lumpiness and tough comps in bookings, and higher near-term R&D investment. On balance, the company demonstrated healthy underlying demand, solid cash generation and confidence in continued SaaS and transaction growth while acknowledging some short-term variability and investment-driven margin shifts.Positive Updates
Recurring revenue and SaaS momentum
Recurring revenues grew 11% year-over-year; subscriptions revenue increased 16.1% and SaaS revenue grew 20.2% (SaaS exceeded $200M in a quarter for the first time). Company guidance expects subscription growth of 12%–15% and SaaS growth of 20.5%–22.5% for FY2026.
Negative Updates
One-time contract dispute reserve reduced reported results
A one-time noncash loss reserve related to a contract dispute reversed approximately $8.8M of license revenue and $0.9M of professional services revenue in Q4. Management stated there is no cash impact or remaining balance-sheet exposure; excluding the reserve, reported revenue growth would have been 8.1% (vs. reported 6.3%), operating margin would have been ~120 bps higher, and EPS would have been $0.17 higher.
Read all updates
Q4-2025 Updates
Positive
Negative
Recurring revenue and SaaS momentum
Recurring revenues grew 11% year-over-year; subscriptions revenue increased 16.1% and SaaS revenue grew 20.2% (SaaS exceeded $200M in a quarter for the first time). Company guidance expects subscription growth of 12%–15% and SaaS growth of 20.5%–22.5% for FY2026.
Read all positive updates
Company Guidance
Tyler guided fiscal 2026 total revenues of $2.50–$2.55 billion (midpoint ≈ +8.3% growth) with GAAP diluted EPS $8.30–$8.61 and non‑GAAP diluted EPS $12.40–$12.65, an estimated non‑GAAP tax rate of 23% (up 0.5 ppt), and a free cash flow margin target of 26%–28%; R&D is expected to be $242M–$247M. Revenue-line guidance: subscription +12%–15%, SaaS +20.5%–22.5% (midpoint 21.5%), transaction +5%–7% (or +10%–12% excluding the ~$36M Texas payments contract that ended in 2025), maintenance −5% to −7%, professional services +3%–5%, license +15%–17% (note: excluding the 2025 contract loss reserve, license revenues would have been expected to decline ~30%–32%), and hardware & other −17% to −19%. Guidance excludes potential acquisitions (including pending For The Record) and GAAP EPS may vary materially due to discrete tax items.Tyler Technologies Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| 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
Negative
322.31
Price Trends
339.85
Negative
394.81
Negative
466.26
Negative
Market Momentum
-8.05
Positive
38.28
Neutral
19.78
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 322.31 is below the 20-day moving average (MA) of 336.23, below the 50-day MA of 339.85, and below the 200-day MA of 466.26, indicating a bearish trend. The MACD of -8.05 indicates Positive momentum. The RSI at 38.28 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.55B | 47.65 | 76.65% | ― | 4.10% | -0.21% | |
72 Outperform | $10.51B | 49.66 | 12.92% | ― | 22.80% | 198.93% | |
71 Outperform | $13.62B | 61.99 | 8.73% | ― | 10.62% | 31.43% | |
70 Outperform | $5.36B | 41.43 | 20.52% | ― | 13.30% | 2.80% | |
68 Neutral | $16.71B | 26.80 | 11.57% | 1.17% | 6.67% | 21.21% | |
63 Neutral | $4.72B | 224.68 | -9.44% | ― | 16.98% | -265.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TYL
Tyler Technologies
322.31
-246.98
-43.38%
GWRE
Guidewire
125.09
-66.96
-34.87%
MANH
Manhattan Associates
126.60
-34.49
-21.41%
SSNC
SS&C Technologies Holdings
70.00
-5.11
-6.80%
PCTY
Paylocity
97.92
-85.83
-46.71%
ESTC
Elastic
45.39
-33.40
-42.39%
Tyler Technologies Corporate Events
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...
Business Operations and StrategyStock Buyback
Tyler Technologies Authorizes New $1 Billion Share Buyback
Positive
Feb 4, 2026
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 rep...
Business Operations and StrategyM&A Transactions
Tyler Technologies to Acquire Digital Court-Recording Firm FTR
Positive
Feb 3, 2026
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...
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.