Tyler Technologies Q2 revenue up 8%, slightly misses estimates

Overview

• US tech firm's Q2 revenue grew 8%, slightly missing analyst expectations

• Adjusted net income for Q2 slightly beat analyst consensus

• Company announced new $1.5 bln share repurchase program

Outlook

• Tyler Technologies sees 2026 total revenues between $2.535 bln and $2.575 bln

• Company expects 2026 non-GAAP diluted EPS of $12.95 to $13.20

• Company says public sector demand remains healthy, supporting sustained growth

Result Drivers

• SAAS GROWTH - SaaS revenues rose 21.7% year-over-year, driven by sustained public sector demand for modernization

• RECURRING REVENUE - Recurring revenues increased 8.2%, comprising nearly 87% of total revenue

• CASH FLOW GENERATION - Free cash flow rose nearly 35% to a Q2 record, supported by operational performance and capital deployment

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Tyler Technologies Inc is $430.00, about 29% above its July 28 closing price of $333.35

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads

• July 29 - Blackbaud Q2 EPS beats estimates on cost discipline

• July 29 - Alkami Technology Q2 revenue slightly beats estimates amid client, product expansion

• July 29 - ADP tops fourth-quarter revenue estimates on payroll software demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)