| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 18 | 51.2x | 17.3x | Bottom tier | |
Growth | 69 | 8.2% | 7.1% | Top tier | |
Quality | 73 | 6.2% | 4.5% | Top tier | |
Safety | 83 | 0.9x | 2.6x | Top tier | |
Capital Return | 42 | 0.00% | 0.06% | Around median | |
Momentum | 57 | -36.3% | -1.6% | Around median | |
Sentiment | 71 | 14 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
82% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Tyler Technologies sells software and digital solutions to state and local governments, with a portfolio focused on ERP systems, courts and justice, public safety, licensing, payments, and transaction-related services. Its revenue model consists of SaaS subscriptions, migrating customers from on-premises systems to the cloud, transaction fees, and cross-selling within the customer base; management has explained that its goal is to increase product penetration per customer from two or three products to between eight and ten products.
In Q2 fiscal 2026, revenue was $645.1 million, gross profit was $307.1 million, net income was $93.5 million, and earnings per share according to EDGAR were approximately $2.23. This equates to a gross margin of approximately 47.6% and a net income margin of approximately 14.5%, while adjusted earnings per share were $3.08 and exceeded expectations according to the July 30, 2026 news report, with revenue growing 8.2% year over year despite coming in below analysts' estimates.
Revenue for the twelve months ended in 2026 was approximately $2.4 billion, gross profit was $1.1 billion, and net income was $324.6 million, compared with revenue of $2.3 billion and net income of $315.6 million in fiscal 2025. Within the growth mix, SaaS revenue increased 21.7% in Q2 fiscal 2026, and transaction revenue grew approximately 10% excluding the Texas contract, while management said organic total revenue growth was approximately two percentage points below overall growth due to the contribution from acquisitions.
The analyst consensus is “Buy,” with an average target of $414.38 and a wide range from $340 to $455; the average falls within the 52-week range of $270.71–$566.58 and is approximately 27% below its high. No reliable price-to-earnings ratio is available in the data, while the average target's position below the 52-week high reflects a revaluation related to the Q2 fiscal 2026 revenue miss and the slow appearance of bookings and artificial intelligence in revenue, despite the raised earnings outlook and repurchase program.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
SaaS, cloud migrations, transactions, and cross-selling are driving the primary growth paths. SaaS revenue increased 21.7% in Q2 fiscal 2026, and SaaS bookings and total bookings reached the highest quarterly level in the company's history. Transaction revenue also grew approximately 10% excluding Texas, while Tyler aims to migrate 85% of 2023 maintenance revenue to the cloud by 2030.
Revenue was $645.1 million and gross profit was $307.1 million, equivalent to a gross margin of approximately 47.6%. Net income reached $93.5 million and earnings per share according to EDGAR reached $2.23, while adjusted earnings per share were $3.08 and exceeded expectations. Revenue grew 8.2% year over year but came in below analysts' estimates, which pressured the stock following the results announcement on July 30, 2026.
Management said on the July 30, 2026 call that direct revenue from artificial intelligence still represents a very small percentage of the annual contract value of new contracts. It expects the contribution to become more significant in the second half of fiscal 2027 and then expand during fiscal 2028. Products receiving customer engagement include Document Automation, Resident AI Assistant, and Priority-Based Budgeting, and Resident AI Assistant has reached eight states with a typical annual value of several million dollars per state.
Automated analysis for informational purposes only — not investment advice.
The company aims to migrate 85% of 2023 maintenance revenue to the cloud by 2030, using cloud-exclusive features and artificial intelligence capabilities to encourage the transition. Tyler will launch Cloud Living pilots during 2027, with reference customers beginning to emerge during 2028. The percentage of court customers on legacy systems declined from 89% three years ago to 7% by July 30, 2026, while approximately 85% to 90% of Enterprise ERP customers were on the current version.
The transaction-funded model allows government solutions to be implemented through fees tied to usage by citizens or businesses, rather than relying entirely on budget appropriations. The deal signed in Q2 fiscal 2026 for a digital vehicle title registration solution is expected to begin near $2 million in annual revenue in early 2027 and then rise to more than $10 million with mandatory adoption. Management also said the largest software deals in the two quarters preceding the July 30, 2026 call were transaction-funded, so they do not appear within SaaS bookings despite their future contribution to transaction revenue.
The company authorized an additional $1.5 billion share repurchase program and had repurchased more than 5.5% of outstanding shares from the beginning of fiscal 2026 through the July 30, 2026 call. The chief financial officer said repurchases had become a higher priority based on free cash flow and the 2030 outlook. In Q2 fiscal 2026, the company recorded record second-quarter free cash flow, but the comparison also benefited from cash taxes that were approximately $30 million lower than in the corresponding period.