Tyler Technologies (TYL) AI Stock Analysis

• Market Cap: $13.92B
• Dividend Yield: N/A
• Average Volume (3M): 786.65K
• Price to Earnings (P/E): 46.5
• Beta (1Y): 0.62
• 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: 1,130,286
• 30 Day Avg. Volume: 786,646
• 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: 1.01
• Enterprise Value/Revenue: 6.04
• Enterprise Value/Gross Profit: 13.52
• Enterprise Value/Ebitda: 26.83
• 1Y Price Target: $443.53
• Price Target Upside: 32.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 12.54
• Revenue Forecast (FY): $2.53B

• Rating: 72 Outperform
• Price Target: $377.00 ▲(12.50% Upside)
• Action: Upgraded Date: 02/13/26
• Date: Action: Upgraded 02/13/26

The score is primarily supported by strong financial performance (growth, cash generation, and low leverage) and constructive earnings-call guidance focused on continued SaaS momentum and durable free cash flow. These positives are meaningfully offset by weak technicals (broad downtrend and oversold signals) and a premium valuation (P/E ~47) that raises execution risk.

Positive Factors

Conservative balance sheet

Low leverage and a stronger equity base give Tyler durable financial flexibility over the next several quarters. This reduces refinancing and solvency risk, enables strategic M&A and buybacks, and supports continued investment in SaaS product development without stressing liquidity.

Strong free cash flow

Consistent, high free cash flow provides a durable funding source for share repurchases, acquisitions (e.g., FTR), and elevated R&D. Strong cash conversion underpins capital return programs and strategic investments while insulating the business from short-term revenue lumpiness.

Recurring revenue & SaaS momentum

A sustained shift toward SaaS and higher recurring revenue increases revenue visibility and margin sustainability. ARR growth and strong SaaS guidance imply more predictable cash flows, higher lifetime value per customer, and structural progress toward a higher-margin, cloud-first revenue mix.

Negative Factors

Margin volatility

Fluctuating gross and operating margins reflect mix shifts between licenses, services and SaaS plus episodic one-offs. That variability complicates multi-quarter margin forecasting and raises execution risk for management's margin targets as the firm scales cloud offerings and absorbs higher investment spend.

Lumpy bookings cadence

Irregular bookings and large multi-year deals create timing volatility in revenue recognition and ARR conversion. This lumpiness makes near-term growth uneven, complicates resource planning, and increases the chance of quarterly misses even if long-term demand remains intact.

R&D spend and cost reclassification

Higher planned R&D and migration of development costs into R&D raise near-term operating expense and shift margin dynamics. While strategic for AI and cloud, increased spend elevates execution risk and can compress margins until investments scale into higher SaaS revenue and efficiency gains.

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 generates revenue primarily through the sale of software licenses, maintenance contracts, and subscription services. The company earns significant income from both one-time software license fees and ongoing subscription fees for its cloud-based products. Additionally, Tyler provides consulting and implementation services, which contribute to its revenue. Key partnerships with government agencies and organizations enhance its market presence and allow for tailored solutions that meet specific regulatory and operational needs, further driving sales and customer retention.

Tyler Technologies Financial Statement Overview

Summary

Strong and improving fundamentals: accelerating revenue, solid profitability with net margin ~13.5% in TTM, strong free cash flow with good earnings quality, and a conservative balance sheet with low leverage (debt-to-equity ~0.11). Main offsets are uneven margin progression and some variability in cash flow conversion versus revenue in TTM.

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: 335.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 335.11 is below the 20-day moving average (MA) of 339.22, below the 50-day MA of 404.53, and below the 200-day MA of 504.24, indicating a bearish trend. The MACD of -25.81 indicates Negative momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 is Neutral, 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	$7.98B	37.55	71.66%	―	4.10%	-0.21%
TYL	72 Outperform	$13.92B	46.54	8.90%	―	10.62%	31.43%
PCTY	70 Outperform	$5.56B	24.41	20.99%	―	13.30%	2.80%
SSNC	68 Neutral	$17.17B	22.34	11.87%	1.17%	6.67%	21.21%
GWRE	65 Neutral	$10.89B	128.87	6.57%	―	22.80%	198.93%
ESTC	65 Neutral	$5.94B	-56.14	-12.84%	―	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 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.