Tyler Technologies (TYL)
NYSE:TYL
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Tyler Technologies
(NYSE:TYL)
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Rating:76Outperform
Price Target:
$334.00
▼(-2.51% Downside)
Action:Reiterated
Date:06/13/26
The score is driven primarily by strong financial performance (profitability, cash generation, and a notably de-risked balance sheet) and a constructive earnings update with continued cloud/recurring momentum. These strengths are tempered by weak technical momentum (below key moving averages with negative MACD) and a relatively high valuation (P/E ~40).
Positive Factors
De-risked Balance Sheet
Tyler’s materially de‑levered balance sheet and very low trailing leverage enhance financial flexibility for multi-year investments, M&A, and opportunistic buybacks. This durable strength reduces refinancing risk, supports credit capacity under the new $1B facility, and cushions cyclical public-sector receipts.
Negative Factors
Flip Cadence Uncertainty
Uncertain timing of customer migrations from on‑prem to SaaS creates multi‑quarter variability in revenue recognition, maintenance erosion, and ARR growth visibility. This structural timing risk complicates medium‑term planning for capacity, cash flow phasing, and margin realization as flips are lumpy and backloaded.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked Balance Sheet
Tyler’s materially de‑levered balance sheet and very low trailing leverage enhance financial flexibility for multi-year investments, M&A, and opportunistic buybacks. This durable strength reduces refinancing risk, supports credit capacity under the new $1B facility, and cushions cyclical public-sector receipts.
Read all positive factors
Tyler Technologies Key Performance Indicators (KPIs)
Tyler Technologies (TYL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.76B
Dividend YieldN/A
Average Volume (3M)921.24K
Price to Earnings (P/E)37.7
Beta (1Y)0.47
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. Volume1,064,660
30 Day Avg. Volume921,236
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 Cap1.01
Enterprise Value/Revenue4.98
Enterprise Value/Gross Profit10.93
Enterprise Value/Ebitda22.66
Forecast
1Y Price Target
$420.62Price Target Upside22.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)12.85
Revenue Forecast (FY)$2.56B
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: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 | 523.45M | 543.18M | 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
Negative
342.61
Price Trends
318.66
Negative
332.36
Negative
408.03
Negative
Market Momentum
-8.68
Positive
35.97
Neutral
19.72
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 342.61 is above the 20-day moving average (MA) of 304.15, above the 50-day MA of 318.66, and below the 200-day MA of 408.03, indicating a bearish trend. The MACD of -8.68 indicates Positive momentum. The RSI at 35.97 is Neutral, neither overbought nor oversold. The STOCH value of 19.72 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.41B | 21.26 | 22.36% | ― | 11.31% | 16.71% | |
79 Outperform | $6.13B | 16.72 | 37.43% | ― | 17.26% | ― | |
78 Outperform | $7.83B | 36.44 | 78.22% | ― | 4.78% | 1.30% | |
76 Outperform | $11.76B | 37.74 | 8.71% | ― | 8.68% | 8.27% | |
70 Outperform | $15.76B | 19.50 | 11.74% | 1.17% | 7.46% | 0.44% | |
67 Neutral | $8.98B | 57.11 | 10.99% | ― | 24.92% | 356.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TYL
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Tyler Technologies Corporate Events
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...
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.