Company Reports

Tyler Technologies' second-quarter revenue grew 8% year over year to $645 million, while non-GAAP operating margin was 25.7%. The firm maintained its 2026 guidance for revenue while raising non-GAAP guidance mainly to account for higher interest income and share buybacks in the second quarter.

Tyler hosted its 2026 investor day, which served as a progress update on strategic priorities, including the cloud transition and the Tyler 2030 vision introduced three years ago.

Tyler Technologies' first-quarter revenue grew 9% year over year to $614 million, while non-GAAP operating margin was 27.2%. The firm raised its 2026 guidance to reflect the recent closing of its For The Record acquisition.

The pace of change in the software industry has accelerated in recent months, leading to heightened uncertainty and prompting us to reassess our moat ratings.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

Tyler's fourth-quarter revenue grew by 6% year over year to $575 million, while non-GAAP operating margin was 24.1%. The firm introduced 2026 guidance as well. Results and guidance are shy of FactSet consensus on the top and bottom lines, driving shares lower.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

Tyler Technologies' third-quarter revenue grew 10% year over year to $596 million, while non-GAAP operating margin was 26.6%. Both were slightly better than FactSet consensus estimates. The firm does not provide quarterly guidance, so results can be volatile against expectations.

Tyler Technologies' second-quarter revenue grew by 10% year over year to $596 million, while non-GAAP operating margin was 26.5%, both of which compare favorably against FactSet consensus estimates. The firm does not provide quarterly guidance, so results can be volatile against expectations.

Tyler hosted its first investor day since 2023. The event centered on progress since the firm established its Tyler 2030 vision two years ago, particularly on the cloud transition and against financial targets.

Tyler's first-quarter revenue grew by 10% year over year to $565 million, while non-GAAP operating margin was 26.8%. Results are solid overall, with notable margin strength. The firm does not provide quarterly guidance, so results can be volatile against expectations.

We are raising our fair value estimate to $650 per share from $630 for wide-moat Tyler, after the firm reported solid third-quarter results, with 2025 guidance that was slightly light on the top line but better than expected in terms of profitability. We therefore tweaked our margin assumptions slightly higher over the next few years. Healthy trends persist, including larger deals, a shift to SaaS, strong conversions of on-premises customers to the cloud, more rapid margin benefit capture from the cloud transition, successful cross-selling, and a buoyant demand environment. We also see consistent growth and margin expansion over time driven by the maturation of the cloud transition, from which we think Tyler, as the leader in local government software, should benefit. Even after raising our fair value estimate, we see shares as fairly valued based on strong recent share performance.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

We raise our fair value estimate to $630 per share from $600 for wide-moat Tyler, after the firm posted a solid third quarter, while tightening its full-year revenue outlook around the midpoint and slightly raising its EPS guidance. Healthy trends persist, including larger deals, a shift to software as a service, or SaaS, strong conversions of on-premises customers to the cloud, more rapid margin benefit capture from the cloud transition, successful cross-selling, and a buoyant demand environment. We also see consistent growth and margin expansion over time driven by the maturation of the cloud transition, from which we think Tyler—as the leader in local government software—should benefit. We also see continued success in upselling and cross-selling between legacy Tyler and NIC as an avenue for upside in the coming quarters. Even after raising our fair value estimate, we see shares as fairly valued, based on strong recent share performance.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

We are raising our fair value estimate to $600 per share from $500 for wide-moat Tyler, after the firm reported good first-quarter results and again raised its full-year outlook. The company continues to hit milestones, such as closing the first of its two proprietary data centers in the quarter, and delivering on its cloud evolution, where positive trends, such as public safety moving to the cloud and conversions of on-premises customers to the cloud, are accelerating. We continue to see federal stimulus funds as supporting the healthy environment. We also see consistent growth and margin expansion over time driven by the maturation of the cloud transition, from which we think Tyler, as the leader in local government software, should benefit. We also see continued success in upselling and cross-selling between legacy Tyler and NIC as an avenue for upside in the coming quarters. We see shares as modestly undervalued.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

We are raising our fair value estimate to $500 per share from $485 for wide-moat Tyler after the firm reported solid first-quarter results and took the unusual step of modestly raising its full-year outlook on both the top and bottom lines. Compared with our expectations, both revenue and non-GAAP operating profit were slightly ahead. We continue to see shares as attractive and are encouraged by management’s assertion that cross-selling and upselling motions are gaining momentum and its bullish assessment of the demand environment. We continue to see federal stimulus funds as supporting the healthy environment and see consistent growth and margin expansion over time driven by the maturation of the cloud transition and think that as the leader in local government software Tyler should benefit.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.

We view Tyler Technologies as the clear leader in a sleepy and underserved public service software niche market. We believe there is a decadelong runway for normalized top-line growth near 10% at Tyler, especially as demand for SaaS accelerates and the need to modernize local governments’ legacy enterprise resource planning systems intensifies.