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TYL Q1 EPS hit $3.09, up 11.2%, with revenues rising 8.6% to $613.5M, beating estimates.
TYL saw SaaS revenues jump 23.5% and bookings rise 10.1%, signaling strong demand and pipeline growth.
TYL more than doubled free cash flow and raised the 2026 outlook after the For The Record acquisition.
Tyler Technologies, Inc. (TYL - Free Report) delivered a solid first quarter of 2026, with non-GAAP earnings of $3.09 per share, which rose 11.2% year over year and beat the Zacks Consensus Estimate by 2.7%.
Tyler Technologies’ revenues increased 8.6% year over year to $613.5 million, topping the consensus mark by 0.64%.
The quarter’s performance was supported by accelerating bookings and continued momentum in cloud and AI-enabled offerings. Annualized recurring revenue (ARR) was $2.15 billion, up 10.4%, underscoring the durability of Tyler Technologies’ subscription-led model.
TYL’s Recurring Base Deepens in Q1
Recurring revenues increased 10.4% year over year to $538.6 million and represented 87.8% of total revenues, up from 86.3% in the year-ago quarter. Subscription revenues rose 14.6% to $429.8 million, keeping the revenue base tilted toward more predictable streams.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Management said quarterly recurring and total revenues reached new record highs, reflecting strong execution across strategic priorities and improving operating leverage from a cloud-optimized platform.
Tyler Technologies' SaaS Engine Stays Hot as Deals Expand
SaaS revenues grew 23.5% year over year to $222.4 million, extending the company’s streak of 20% or greater SaaS growth to 21 consecutive quarters. Transaction revenues increased 6.4% to $207.4 million, with Tyler Technologies noting that revenues under the Texas payments contract ended in the fourth quarter of 2025.
Excluding the impact of the Texas payments contract, transaction revenues grew 13.8%, subscription revenues rose 18.6% and total revenues increased 11.0%, pointing to healthier underlying demand and volume trends in the transactions portfolio.
Total bookings rose 10.1% year over year to $543 million, a record for first-quarter bookings. Total SaaS bookings jumped 40.4% to approximately $207 million in total contract value, reflecting strength across new deals, expansions, renewals and on-premises flips.
Sales execution was supported by sustained public sector demand indicators, including strong RFP and demo activity and a healthy pipeline across solutions, as highlighted in the company’s investor materials.
TYL Lifts Profitability on Mix and Cloud Efficiency
Non-GAAP operating income increased 10% year over year to $166.6 million, while non-GAAP operating margin expanded 40 basis points to 27.2%. Tyler Technologies attributed the margin improvement to a shift toward higher-margin SaaS and transaction revenues, alongside efficiency gains across cloud operations and disciplined expense management.
Adjusted EBITDA rose 9.3% to $177.3 million, reflecting the same mix and efficiency tailwinds that management emphasized in prepared remarks.
TYL Converts Growth to Cash at a Faster Clip
Cash flows from operations climbed 91% year over year to $107.3 million. Free cash flow more than doubled to $102.8 million, up 112.9%, and free cash flow margin expanded to 16.8% from 8.5% in the year-ago quarter.
Management framed the cash performance as a key proof point of operating leverage, particularly as cloud efficiencies improve and the business mix continues to move toward recurring revenues.
TYL Highlights Capital Returns and a Clean Balance Sheet
Tyler Technologies repaid $600 million of convertible debt at maturity in March and ended the quarter with cash and investments of approximately $398 million and no debt on the balance sheet.
The company repurchased 799,856 shares for about $250 million during the quarter and bought an additional 298,144 shares for roughly $97 million from the end of the first quarter through April 29. Year to date, TYL said that it has repurchased about 2.5% of shares outstanding, with roughly $653 million remaining under its current authorization.
TYL Updates 2026 Outlook After For The Record Deal
For full-year 2026, Tyler Technologies guided total revenues to be between $2.535 billion and $2.575 billion. The Zacks Consensus Estimate for TYL’s fiscal 2026 revenues is pegged at $2.53 billion, indicating year-over-year growth of 8.42%.
TYL’s non-GAAP earnings per share are projected to be between $12.50 and $12.75. The Zacks Consensus Estimate for Tyler Technologies’ fiscal 2026 earnings is pegged at $12.52, indicating year-over-year growth of 10.7%.
The company also projected a free cash flow margin of 26-28%, with R&D expense of $245-$250 million and capital expenditures of $18-$20 million.
The updated outlook includes the acquisition of For The Record, which closed on April 14 for approximately $223 million in cash. Management said the deal adds legal-grade speech-to-text and real-time, multilingual transcription capabilities to Tyler Technologies’ Courts & Justice portfolio and is expected to shift toward more recurring revenues as its SaaS transition progresses.
Shares of Analog Devices have gained 41.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results in May. 20.
Shares of Advanced Energy have rallied 76.3% in the year-to-date period. Advanced Energy is slated to report first-quarter 2026 results in May. 4.
Arista Networks shares have surged 26.1% in the year-to-date period. Arista Networks is set to report first-quarter 2026 results on May 5.
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Tyler Technologies Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Tyler Technologies, Inc. (TYL - Free Report) delivered a solid first quarter of 2026, with non-GAAP earnings of $3.09 per share, which rose 11.2% year over year and beat the Zacks Consensus Estimate by 2.7%.
Tyler Technologies’ revenues increased 8.6% year over year to $613.5 million, topping the consensus mark by 0.64%.
The quarter’s performance was supported by accelerating bookings and continued momentum in cloud and AI-enabled offerings. Annualized recurring revenue (ARR) was $2.15 billion, up 10.4%, underscoring the durability of Tyler Technologies’ subscription-led model.
TYL’s Recurring Base Deepens in Q1
Recurring revenues increased 10.4% year over year to $538.6 million and represented 87.8% of total revenues, up from 86.3% in the year-ago quarter. Subscription revenues rose 14.6% to $429.8 million, keeping the revenue base tilted toward more predictable streams.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Management said quarterly recurring and total revenues reached new record highs, reflecting strong execution across strategic priorities and improving operating leverage from a cloud-optimized platform.
Tyler Technologies' SaaS Engine Stays Hot as Deals Expand
SaaS revenues grew 23.5% year over year to $222.4 million, extending the company’s streak of 20% or greater SaaS growth to 21 consecutive quarters. Transaction revenues increased 6.4% to $207.4 million, with Tyler Technologies noting that revenues under the Texas payments contract ended in the fourth quarter of 2025.
Excluding the impact of the Texas payments contract, transaction revenues grew 13.8%, subscription revenues rose 18.6% and total revenues increased 11.0%, pointing to healthier underlying demand and volume trends in the transactions portfolio.
TYL’s Bookings Acceleration Signals Demand Resilience
Total bookings rose 10.1% year over year to $543 million, a record for first-quarter bookings. Total SaaS bookings jumped 40.4% to approximately $207 million in total contract value, reflecting strength across new deals, expansions, renewals and on-premises flips.
Sales execution was supported by sustained public sector demand indicators, including strong RFP and demo activity and a healthy pipeline across solutions, as highlighted in the company’s investor materials.
TYL Lifts Profitability on Mix and Cloud Efficiency
Non-GAAP operating income increased 10% year over year to $166.6 million, while non-GAAP operating margin expanded 40 basis points to 27.2%. Tyler Technologies attributed the margin improvement to a shift toward higher-margin SaaS and transaction revenues, alongside efficiency gains across cloud operations and disciplined expense management.
Adjusted EBITDA rose 9.3% to $177.3 million, reflecting the same mix and efficiency tailwinds that management emphasized in prepared remarks.
TYL Converts Growth to Cash at a Faster Clip
Cash flows from operations climbed 91% year over year to $107.3 million. Free cash flow more than doubled to $102.8 million, up 112.9%, and free cash flow margin expanded to 16.8% from 8.5% in the year-ago quarter.
Management framed the cash performance as a key proof point of operating leverage, particularly as cloud efficiencies improve and the business mix continues to move toward recurring revenues.
TYL Highlights Capital Returns and a Clean Balance Sheet
Tyler Technologies repaid $600 million of convertible debt at maturity in March and ended the quarter with cash and investments of approximately $398 million and no debt on the balance sheet.
The company repurchased 799,856 shares for about $250 million during the quarter and bought an additional 298,144 shares for roughly $97 million from the end of the first quarter through April 29. Year to date, TYL said that it has repurchased about 2.5% of shares outstanding, with roughly $653 million remaining under its current authorization.
TYL Updates 2026 Outlook After For The Record Deal
For full-year 2026, Tyler Technologies guided total revenues to be between $2.535 billion and $2.575 billion. The Zacks Consensus Estimate for TYL’s fiscal 2026 revenues is pegged at $2.53 billion, indicating year-over-year growth of 8.42%.
TYL’s non-GAAP earnings per share are projected to be between $12.50 and $12.75. The Zacks Consensus Estimate for Tyler Technologies’ fiscal 2026 earnings is pegged at $12.52, indicating year-over-year growth of 10.7%.
The company also projected a free cash flow margin of 26-28%, with R&D expense of $245-$250 million and capital expenditures of $18-$20 million.
The updated outlook includes the acquisition of For The Record, which closed on April 14 for approximately $223 million in cash. Management said the deal adds legal-grade speech-to-text and real-time, multilingual transcription capabilities to Tyler Technologies’ Courts & Justice portfolio and is expected to shift toward more recurring revenues as its SaaS transition progresses.
TYL Zacks Rank & Stocks to Consider
TYL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices (ADI - Free Report) , Advanced Energy (AEIS - Free Report) and Arista Networks (ANET - Free Report) , each carrying a Zacks Rank 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 41.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results in May. 20.
Shares of Advanced Energy have rallied 76.3% in the year-to-date period. Advanced Energy is slated to report first-quarter 2026 results in May. 4.
Arista Networks shares have surged 26.1% in the year-to-date period. Arista Networks is set to report first-quarter 2026 results on May 5.