Tyler Technologies (TYL) Q3 2026 Earnings Report
MX:TYL Q3 2026 EPS Results
- Actual EPS
- MXN 66.47
- Consensus EPS
- MXN 65.77
- Beat/Miss
- Beat by +MXN 0.70
- One Year Ago EPS
- MXN 56.08
MX:TYL Q3 2026 Revenue Results
- Actual Revenue
- MXN 12.23B
- Expected Revenue
- MXN 12.30B
- Beat/Miss
- Missed by -MXN 72.09M
- YoY Revenue Growth
- +8.67%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
MX:TYL Upcoming Earnings
Tyler Technologies's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TYL Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive. Tyler reported strong recurring revenue, SaaS growth, margin expansion, record free cash flow, healthy public-sector demand, expanding cloud migration activity, growing AI adoption, and substantial share repurchases. The main challenges were timing-related SaaS revenue pressure, lumpy large-deal closings, shorter contract duration, uneven AI readiness, and variability in transaction-funded revenue. Management remained confident in the long-term growth strategy and 2030 objectives.
Company Guidance
Management expects Cloud Living rollouts to remain on track for early 2027, with an accelerating pace of migrations beginning in 2027; flips are expected to be a bigger contributor next year and to provide an increasing contribution over the coming quarters and years toward 20% or north of 20% SaaS revenue growth, while the long-term target remains 20% through 2030 and the 2030 conversion target remains 85%. They expect at least the second half of next year before seeing really meaningful contribution from new agentic AI capabilities, with 11 agents generally available and a target of 25 by year-end. For Q4, inorganic revenue is estimated in the range of $8 million-$9 million, and management expects a strong finish to 2026 while remaining within the same EPS range for the year.
- Strong Third-Quarter Financial PerformanceTyler delivered 11% recurring revenue growth, including SaaS revenue growth of 21.2%, expanded operating margins by 150 basis points, and generated record quarterly free cash flow of $277 million.
- Healthy Public-Sector Demand and SaaS BookingsPublic-sector demand remained healthy, supported by modernization priorities, strong client engagement, and an active pipeline. Total SaaS bookings increased 14%, reflecting continued momentum in cloud adoption and digital transformation across government.
- Accelerating Cloud Migration EngagementFollowing July outreach to on-premise enterprise clients, Tyler reported strong engagement and increasing activity among large clients advancing their cloud transition plans. More than 1,500 clients have had direct contact with sales representatives following letters sent to approximately 2,500 clients.
- Cloud Living Milestone and 2027 Migration ReadinessTyler completed its first implementation of its multi-tenant solution for an existing enterprise ERP client. The solution supports a common code stream, continuous innovation, automated quarterly release upgrades, and more efficient delivery. Broader Cloud Living rollouts remain on track for early 2027, with an accelerating pace of migrations expected to begin in 2027.
- Proactive Cloud-Conversion Strategy Gaining Client SupportThe company is using pricing strategies, direct sales outreach, and product policies such as end-of-life support announcements and limiting new product upgrades on on-premise versions to encourage cloud conversions. Management said the approach has been extremely well received and increased confidence in the 2030 migration target.
- AI Adoption and Commercialization ProgressAI deployments and agentic capabilities expanded during the quarter, with approximately 300 deals containing AI across the portfolio. AI solutions are generally being embedded into broader software deals, with attach-related uplift still in the single digits but described as real and growing.
- Agentic AI Product ExpansionTyler had 11 agents generally available and is targeting 25 by year-end. Adoption interest is broad across the portfolio, with the company focused on demonstrating client value, return on investment, predictability, and trust.
- Demonstrated AI Customer Savings and Productivity BenefitsTyler cited a large county that used agentic AI to address a $13 million budget crunch and identify $9 million in savings. Other agentic solutions are helping clients identify and pursue grants, including opportunities involving several million dollars and one example involving $20 million that a client could apply for.
- Cybersecurity as a Cloud and AI Adoption DriverManagement said cybersecurity continues to drive momentum toward the cloud and modernization. Tyler is incorporating security into its AI offerings, using AI in its security program to discover and address vulnerabilities, and working with frontier partners including Anthropic and others.
- Strong Transaction Revenue Growth and Payments IntegrationTransaction growth exceeded expectations and was driven by integrating Tyler's payments platform with software solutions, selling payments into the existing customer base, and including payments in new software sales. Excluding Texas contract churn, transaction revenue growth was described as approximately 14%.
- Expansion of Transaction-Funded SaaS-Like DealsTyler continued to win transaction-funded deals in areas including digital motor vehicle titling, regulatory solutions, outdoor recreation, and Louisiana State Parks. These deals carry SaaS-like margins, are not funded through appropriated budgets, and management generally expects them to be at least as profitable as comparable SaaS deals.
- Strong State and Federal Business ActivityState growth benefited from cross-selling through state enterprise agreements and a dedicated state sales team established about a year ago. Federal business was also strong in the quarter, with notable platform deals coinciding with the federal budget cycle and a return toward a more normal contracting environment.
- Public Safety and Courts & Justice Growth OpportunitiesERP had a strong year with improved win rates and increased activity at the upper end of the market. Courts & Justice remained a strong performer with substantial flip opportunities, while public safety benefited from larger state police deals, cloud-migration opportunities, and the CODY acquisition's presence in the lower end of the market.
- Record Public Safety Conference Lead GenerationManagement said the IACP conference was the largest ever, with more than 19,000 attendees, and Tyler left with approximately twice as many leads as in prior years. The company said public-safety funding remains strong and its competitive position remains favorable.
- Capital Allocation and Share RepurchasesTyler repurchased approximately 8.5% of shares outstanding year to date, with almost $1.4 billion remaining under its authorization. Management said share buybacks remain a higher priority while the company continues to evaluate tuck-in acquisitions and expects to remain active in repurchasing shares.
- Acquisition Contribution and PipelineThe company continued its acquisition strategy through CODY Systems and other tuck-in opportunities. Fourth-quarter revenue from acquisitions closed within the last year is estimated at $8 million-$9 million, with the largest share coming from FTR.
- Positive Long-Term OutlookManagement remained confident in its long-term 20% SaaS growth target through 2030, expected increasing contributions from cloud flips, and Tyler's broader Tyler 2030 objectives. The company said it entered the fourth quarter well positioned for a strong finish to 2026.
MX:TYL Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 64.46- | 49.85 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 65.7766.47 | 56.08 | 18.52% (+10.39) | |
| Jul 29, 2026 | 2026 (Q2) | 57.6758.16 | 56.91 | 2.19% (+1.25) | |
| Apr 29, 2026 | 2026 (Q1) | 56.7458.35 | 52.49 | 11.15% (+5.85) | |
| Feb 11, 2026 | 2025 (Q4) | 51.4449.85 | 45.88 | 8.64% (+3.97) | |
| Oct 29, 2025 | 2025 (Q3) | 53.9356.08 | 47.58 | 17.86% (+8.50) | |
| Jul 30, 2025 | 2025 (Q2) | 52.3456.91 | 45.32 | 25.58% (+11.59) | |
| Apr 23, 2025 | 2025 (Q1) | 48.3652.49 | 41.54 | 26.36% (+10.95) | |
| Feb 12, 2025 | 2024 (Q4) | 45.9445.88 | 35.69 | 28.57% (+10.20) | |
| Oct 23, 2024 | 2024 (Q3) | 46.4147.58 | 40.41 | 17.76% (+7.18) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed