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TYL · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Tyler Technologies, Inc. (TYL) stock moving?
Tyler reported Q3 2026 on Oct 28 with adjusted EPS of $3.52, beating the $3.48 estimate, but revenue of $647.6M missed the $651.6M estimate. Management affirmed FY2026 adjusted EPS guidance of $12.95-$13.20 (versus a $13.10 consensus) and narrowed sales guidance to $2.535B-$2.565B, a top end slightly below the prior $2.575B and the $2.554B consensus midpoint. The stock fell 4.7% to $360.90 on the report day, then rallied about 19% to a $430.37 close on Nov 5, and closed at $421.66 on Nov 10. Volume has normalized from the 1.8M-share peak on Oct 29 to roughly 0.6-0.8M shares in recent sessions. Analyst sentiment is mixed: Wells Fargo and BTIG raised targets to $430 with Overweight and Buy ratings, while Goldman Sachs (Neutral, $385) and Cantor Fitzgerald (Hold, $395) sit below the current price. The CEO and COO each sold about 10,000 shares (roughly $3.9M and $4.2M) in late October, which is a modest insider-selling signal. A WV Department of Education ERP contract adds a small recurring-revenue win. The rebound is largely driven by the earnings beat and guidance reaffirmation, but with the price above most targets, further upside depends on execution in the next report.
News behind the analysis
- Tyler Technologies Reports Third Quarter 2026 ResultsTyler released Q3 2026 results on October 28, 2026, with the full earnings release filed with the SEC under Item 2.02.
- Tyler Technologies Q3 Adj. EPS $3.52 Beats $3.48 Estimate, Sales $647.566M Miss $651.637M EstimateAdjusted EPS beat consensus by $0.04, while revenue fell about $4M short of the estimate.
- Tyler Technologies Affirms FY2026 Adj EPS Guidance of $12.95-$13.20 vs $13.10 Est; Narrows FY2026 Sales Guidance from $2.535B-$2.575B to $2.535B-$2.565B vs $2.554B EstFull-year adjusted EPS guidance was affirmed, while the sales range was narrowed to a top end of $2.565B.
- BTIG Maintains Buy on Tyler Technologies, Raises Price Target to $430BTIG kept its Buy rating and lifted its price target to $430 from $400 after the quarter.
- Wells Fargo Maintains Overweight on Tyler Technologies, Raises Price Target to $430Wells Fargo reaffirmed its Overweight rating and raised its price target to $430 from $400.
- Cantor Fitzgerald Maintains Hold Rating on Tyler Technologies, Raises Price TargetCantor kept its Hold rating and raised its price target to $395.
- Goldman Sachs Maintains Neutral on Tyler Technologies, Raises Price Target to $385Goldman Sachs kept a Neutral rating and raised its price target to $385 from $345.
- Tyler Technologies Signs Agreement with West Virginia Department of EducationTyler signed an agreement to provide its cloud-based Enterprise ERP financial and HR software suites to the West Virginia Department of Education.
- Tyler Technologies Chief Operating Officer Sells SharesCOO Jeffrey David Puckett sold 10,000 shares worth about $4.19M, a routine-sized insider sale.
About Tyler Technologies, Inc.
Tyler Technologies, based in Plano, Texas, is an S&P 500 company that sells software and technology services only to the public sector: local, state and federal governments, courts and schools. Its software runs in more than 50,000 installations across about 16,000 client locations. It is steadily moving clients from software installed on their own computers to cloud subscriptions (SaaS).
How it makes money
About 88% of revenue repeats year after year. In Q3 2026, total revenue was roughly $648 million, and the main sources were: SaaS subscriptions (about 37%, growing about 21% a year), transaction fees from online government payments and filings (about 34%), and maintenance on software clients already own. Professional services such as setup, training and data conversion brought in about 10%, and a small share came from software licenses and hardware. Full-year 2026 revenue guidance is about $2.5–2.6 billion.
What usually moves TYL
- Pace of moving clients to cloud subscriptions (SaaS) and SaaS bookings
- State and local government budgets and IT spending
- Volume of payment transactions and state contracts (for example, the Texas payments contract)
- Adoption of AI features and operating margin expansion
- Valuation of software stocks and share buybacks