Tyler Technologies Q3 revenue rises on public sector demand
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
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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.)