Tyler Technologies (NYSE:TYL) Announces Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Tyler Technologies beat EPS estimates: Third-quarter EPS came in at $3.52 versus the $3.48 consensus, while revenue increased 8.7% year over year to $647.6 million, driven by strong recurring and SaaS growth.
• Revenue fell short of expectations: Quarterly revenue missed analysts’ roughly $651.5 million forecast, and shares declined 4.6% to $361.30 as investors focused on softer top-line performance and slightly reduced full-year revenue guidance.
• Analyst sentiment remains favorable: Several firms raised price targets, including Needham to $500 and TD Cowen to $450, although recent executive stock sales and a Zacks downgrade to “hold” provide counterpoints.

Tyler Technologies (NYSE:TYL - Get Free Report) issued its quarterly earnings results on Wednesday. The technology company reported $3.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.48 by $0.04, FiscalAI reports. Tyler Technologies had a net margin of 13.36% and a return on equity of 11.15%. The company had revenue of $647.57 million during the quarter, compared to analysts' expectations of $651.52 million.

Tyler Technologies Stock Down 4.6%

NYSE TYL traded down $17.32 during mid-day trading on Wednesday, reaching $361.30. The stock had a trading volume of 1,309,883 shares, compared to its average volume of 743,370. Tyler Technologies has a 1 year low of $270.71 and a 1 year high of $510.19. The stock has a market cap of $14.80 billion, a PE ratio of 47.92, a price-to-earnings-growth ratio of 2.57 and a beta of 0.85. The company has a fifty day moving average price of $349.90 and a 200 day moving average price of $338.60. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.55 and a quick ratio of 1.55.

Insider Activity at Tyler Technologies

In other Tyler Technologies news, CEO H. Moore, Jr. sold 9,250 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $372.79, for a total transaction of $3,448,307.50. Following the sale, the chief executive officer directly owned 100,392 shares in the company, valued at approximately $37,425,133.68. This trade represents a 8.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Jeffrey Puckett sold 8,500 shares of Tyler Technologies stock in a transaction on Monday, August 24th. The stock was sold at an average price of $356.44, for a total value of $3,029,740.00. Following the completion of the sale, the chief operating officer directly owned 7,784 shares of the company's stock, valued at approximately $2,774,528.96. The trade was a 52.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.10% of the company's stock.

More Tyler Technologies News

Here are the key news stories impacting Tyler Technologies this week:

• Positive Sentiment: Strong recurring and SaaS growth: Third-quarter revenue rose 8.7% year over year to $647.6 million, while recurring revenue increased 11.0% and SaaS revenue jumped 21.2% to $242.2 million. Subscription revenue grew 15.3% to $462.6 million. Tyler Technologies Q3 Revenue Rises 8.7% to $647.6 Million
• Positive Sentiment: Profitability and cash generation beat expectations: Non-GAAP EPS of $3.52 exceeded the $3.48 consensus, GAAP operating income rose 19.5% to $117.0 million, and free cash flow reached a quarterly record of $277.0 million. The company also repurchased approximately $379 million of stock during the quarter. Tyler Technologies Reports Third Quarter 2026 Results
• Positive Sentiment: Analyst support remains favorable: TD Cowen initiated or reiterated a Buy rating, while DA Davidson reaffirmed its Buy rating with a $460 price target. Needham also raised its target to $500 from $400, suggesting some analysts still see substantial upside. Tyler Technologies Receives a Buy from TD Cowen
• Positive Sentiment: New customer wins support future demand: Five cities and counties selected Tyler’s AI-powered Priority Based Budgeting solution, adding evidence of continued adoption among public-sector customers. Local Governments Turn to Tyler Technologies’ Priority Based Budgeting
• Neutral Sentiment: Tyler maintained its 2026 revenue outlook at $2.535 billion to $2.565 billion in the company’s earnings release, while non-GAAP EPS guidance remained $12.95 to $13.20.
• Negative Sentiment: Revenue missed expectations: Quarterly revenue of approximately $647.6 million was below analyst estimates ranging from $651.5 million to $651.6 million. For a premium-valued software stock, the softer top line outweighed the EPS beat.
• Negative Sentiment: Guidance became slightly less favorable: Management lowered the upper end of its full-year 2026 revenue range from $2.575 billion to $2.565 billion while leaving profit guidance unchanged, raising concerns about near-term growth momentum. Tyler Technologies slides on likely revenue disappointment
• Negative Sentiment: Recent insider activity shows two open-market sales and no purchases by company executives over the past six months, a modest additional sentiment overhang.

Analyst Upgrades and Downgrades

TYL has been the topic of a number of recent research reports. Guggenheim began coverage on shares of Tyler Technologies in a research note on Wednesday, July 22nd. They set a "buy" rating and a $440.00 target price for the company. UBS Group set a $395.00 target price on shares of Tyler Technologies in a report on Saturday, August 1st. TD Cowen boosted their price target on Tyler Technologies from $400.00 to $450.00 and gave the stock a "buy" rating in a research report on Monday. Needham & Company LLC upped their price target on Tyler Technologies from $400.00 to $500.00 and gave the stock a "buy" rating in a research note on Tuesday. Finally, Zacks Research downgraded Tyler Technologies from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Tyler Technologies has an average rating of "Moderate Buy" and a consensus price target of $442.78.

About Tyler Technologies

Tyler Technologies, Inc provides integrated software and technology services to public-sector organizations. Its customers include municipalities, counties, states, courts, school districts, public safety agencies, and other government entities. The company's solutions are designed to help public organizations manage operations, improve service delivery, and engage with residents and constituents.

Tyler's product portfolio includes enterprise resource planning and financial management software, property tax and appraisal systems, court and justice solutions, public safety and emergency communications platforms, permitting and licensing tools, and software for schools and elections.

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