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Tyler Technologies Q3 revenue rises on public sector demand

By Reuters News


Overview

  • U.S. public sector tech provider's Q3 revenue rose 8.7% but slightly missed analyst expectations

  • Adjusted net income for Q3 rose 10%

  • Company repurchased 1.1 mln shares during the quarter

  • Completed the acquisition of CODY Systems on July 30


Outlook

  • Tyler Technologies sees 2026 revenue between $2.535 bln and $2.565 bln

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

  • Tyler Technologies projects 2026 free cash flow margin of 26% to 28%


Result Drivers

  • SAAS GROWTH - Recurring revenue growth was driven by 21.2% rise in SaaS revenues

  • PUBLIC SECTOR DEMAND - Co attributed strong SaaS bookings to ongoing public sector investment in digital modernization

  • WORKING CAPITAL - Co said improved working capital performance supported record free cash flow, reaching $277 million, up 11.9%


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$647.57 mln

$651.64 mln (22 Analysts)

Q3 Adjusted Net Income

$143.40 mln

Q3 Net Income

$95.07 mln

*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 13.6% above its October 27 closing price of $378.62

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Oct 28 - Microsoft Q1 results beats estimates driven by Azure growth

  • Oct 28 - ServiceNow Q3 profit just shy of estimates; subscription revenue outlook raised

  • Oct 27 - Manhattan Associates Q3 revenue beats estimates on cloud subscription growth


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.)

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