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TYL·Tyler Technologies, Inc.

$337.63
-3.94 (-1.15%)
Market Closed (Overnight)$344.18+6.55 (+1.94%)
High
$344.18
Open
$340.86
Market Cap
13.99B
52W High
$538.90
Low
$333.85
P. Close
$337.63
P/E
43.09
52W Low
$270.71
Fwd P/E
21.98
DailyIQ Est.
$446.20
Inst. Ownership
57.0%
Short Interest
9.44%
Days to Cover
3.4
Technical Score (1D)
36
SELL
News Sentiment
63
BULLISH
Fenimore Asset Management’s Q2 2026 investor letter, released just 1.7 hours ago, names Tyler Technologies (TYL) as a top holding, citing its strong earnings growth and strategic positioning in public‑sector software. The firm highlights that TYL is riding a broader tech rally driven by AI demand, which is boosting its software solutions for government agencies. This endorsement signals confidence that TYL’s earnings trajectory will continue upward, reinforcing bullish sentiment among investors. The positive outlook is likely to support TYL’s share price over the next 1–10 trading days as traders anticipate further earnings momentum. In addition, the letter’s focus on AI‑driven demand suggests that TYL’s product pipeline is well positioned to capture new contracts in the public sector. Investors should watch for any new contract wins or updates to TYL’s AI initiatives, as these could validate the bullish narrative. Monitoring the upcoming earnings release will be key, as any deviation from the projected growth could shift sentiment. Finally, keep an eye on broader AI market trends and government spending cycles, as they will influence TYL’s revenue prospects in the near term.
Earnings Summary
Tyler Technologies is a software provider focused on public‑sector solutions, delivering enterprise applications for government agencies through digital platforms, data analytics, and cybersecurity, with a strategic partnership with Amazon Web Services to host cloud services. The company operates in the technology sector, specifically within software‑application services tailored to public administration, financial management, and licensing. In the most recent quarters, Tyler posted revenue of $541.1 M in Q4 2024, $565.2 M in Q1 2025, $596.1 M in Q2 2025, and $595.9 M in Q3 2025, showing a steady rise from Q4 2024 to Q2 2025 followed by a slight dip in Q3 2025; EPS grew from $2.43 in Q4 2024 to $2.78 in Q1 2025 and $2.91 in Q2 2025, with a modest decline to $2.97 in Q3 2025. The company consistently beat earnings estimates in the last four quarters, with EPS exceeding forecasts in Q1–Q3 2025, while revenue beat expectations in Q2 2025 and Q1 2026, though it fell short of the $596.9 M estimate in Q4 2025. Historically, Tyler has maintained a positive YoY revenue trajectory, with incremental growth each quarter and a pattern of EPS beats despite occasional revenue misses, indicating resilient profitability. Recent news highlights a record bookings announcement and robust free cash flow in Q2 2026, driven by a 21.7 % rise in SaaS revenue, and the successful Tennessee statewide cloud rollout, which expands its recurring revenue base; the acquisition of CODY Systems is expected to be accretive within 12–18 months, potentially boosting margins and cross‑sell opportunities. Investors should watch the upcoming Q3 guidance for clarity on revenue outlook, margin trajectory, and the impact of the CODY integration and Tennessee rollout, as these factors will likely influence the company’s ability to sustain its SaaS momentum and address recent valuation concerns raised by analysts.}}

EPS

EstBeatMiss
$2.52$2.78$3.05$3.32$3.59Q2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$3.47 - -
Q2'26$3.10$3.08-0.6%
Q1'26$3.04$3.09+1.8%
Q4'25$2.75$2.64-4.1%
Q3'25$2.86$2.97+3.9%
Q2'25$2.78$2.91+4.8%

Revenue

EstBeatMiss
$563M$590M$617M$644M$671MQ2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$658M - -
Q2'26$655M$645M-1.4%
Q1'26$615M$614M-0.3%
Q4'25$597M$575M-3.6%
Q3'25 - $596M -
Q2'25 - $596M -

Market Data

TYL Stock Snapshot

HOLD36/100
$344.18+$6.55 (1.9%)
Market cap
13.99B
P/E ratio
43.1
Day range
$333.85 – $344.18
News sentiment
63/100 · Bullish
Analyst target
$426.64 (+24.0%)
Consensus
Buy · 30 analysts
52-week range+27.1% off low · -36.1% from high
$270.71$538.90
Price $344.18 DailyIQ Est. $446.20

Tyler Technologies, Inc. is consolidating: price is in the lower half of its 52-week range without a decisive push either way. Sector peers are worth watching - large caps in Technology tend to move together on rotation.

Reverse DCF

What growth is priced into TYL?

CHEAP

At today's price, Tyler Technologies, Inc. needs to grow free cash flow about 0.7% a year for the next 10 years to justify its valuation at a 7.92% cost of capital. Over its actual history it has compounded free cash flow at 22.0% a year, so the market is asking for 21.3 percentage points below its own delivered rate. On that basis TYL looks priced below what its own growth record supports.

Implied FCF growth
0.7%
Historical FCF CAGR
22.0%
Growth gap
-21.3 pts
Verdict
CHEAP
Discount rate (WACC)
7.92%
Beta
0.62

Behaviour On Record

What TYL's own history says about today's numbers

Realized volatility (21d)
49.1% 95th pct
Below its peak
-47.8%
vs 200-day average
-4.2%
Up days (1y)
49%

Tyler Technologies, Inc. is currently running 49.1% annualised volatility over the last 21 sessions. Measured against TYL's own 13 years of daily returns rather than a market-wide average, that is the 95th percentile an extreme by its own standards, against a typical reading of 24.6%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

TYL is trading -47.8% below its running peak. Across 12 full years on file, its median worst-drawdown-in-a-year was -20.9%, and the deepest was -45.0% in 2022. The current drawdown is already deeper than this stock's typical annual low point, which puts it in the part of its range where past recoveries began — and where past declines also continued.

Price sits -4.2% from its 200-day moving average. Against every other day in its history, that gap ranks at the 24th percentile a narrower gap than it typically runs. Over the past year TYL closed higher on 49% of sessions, and it is currently 4 sessions into a falling streak.

On September specifically: over 13 years of records, TYL finished the month higher 5 of 13 times, with a median return of -1.6% and an average of -1.2%. Its strongest month historically has been July at +3.7% on average, its weakest February at -1.8%. Seasonality is a weak signal on its own — a decade is a small sample and regimes change — but it is a real distribution rather than a rule of thumb.

Overnight risk is measurable too: TYL has opened more than 2% away from the prior close in 127 of 3,269 sessions (3.9% of the time), with the largest gaps running +7.0% and -10.6%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

Across the last 3 dated reports on file, TYL moved an average of 5.5% in the session after earnings, closing higher 0 of those 3 times, with a median move of -5.2% and a largest of -7.1%.

All figures computed from 3,270 daily closes between 2013-09-19 and 2026-09-18, split-adjusted, recomputed daily. Percentiles are against TYL's own 13-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of TYL's sector?

Tyler Technologies, Inc. sits in the Technology sector, currently ranked 1st of 11 GICS sectors by relative-strength rotation score (leading). Within its narrower Software industry group, TYL ranks 3rd of 15 tracked industries, leading.

Sector rank
#1 of 11
Sector state
Leading
Sector rotation score
90
Industry rank
#3 of 15

Options Market

What is the options market pricing for TYL?

CallsPuts

For Tyler Technologies, Inc.'s nearest expiry (2026-10-16, 27 days out), open interest is put-heavy, a defensive/bearish tilt (put/call ratio of 2.54), with at-the-money implied volatility around 54.4%. The options market is pricing roughly a ±13.4% move by that expiry — a range of about $299.82–$392.22.

Put/call ratio (2026-10-16)
2.54
ATM implied volatility
54.4%
Total open interest
230
Expected move by 2026-10-16
±13.4% ($299.82–$392.22)

Analyst Rating Changes

Are analysts turning bullish or bearish on TYL?

Piper Sandler most recently reiterated its rating on Tyler Technologies, Inc. to Overweight on Jul 31, 2026 with a price target of $491 (from $543). Over the last 90 days, coverage has run 0 upgrades against 0 downgrades, a net mixed lean.

Latest action
Piper SandlerOverweight
90-day upgrades
0
90-day downgrades
0
Net rating momentum
0
DateFirmActionRatingPrice target
Jul 31, 2026Piper SandlerMaintainedOverweight$543 → $491
Jul 30, 2026BTIGMaintainedBuy$420 → $400
Jul 27, 2026TD CowenMaintainedBuy$450 → $400
Jul 23, 2026GuggenheimInitiatedBuy$440
Jun 23, 2026JP MorganMaintainedOverweight$650 → $525
Jun 10, 2026DA DavidsonMaintainedBuy$460
Jun 10, 2026BarclaysMaintainedOverweight$420 → $425
Jun 10, 2026BTIGReiteratedBuy$420
May 13, 2026DA DavidsonMaintainedBuy$460
May 4, 2026DA DavidsonMaintainedBuy$460
May 1, 2026BarclaysMaintainedOverweight$410 → $420
May 1, 2026Cantor FitzgeraldMaintainedNeutral$325 → $360

TYL Competitive Positioning

Tyler Technologies, Inc. (TYL) is tracked alongside these names in Software - Application on DailyIQ — ranked by market cap, with today's move alongside.