Tyler Technologies, Inc. (TYL) is a Plano, Texas-based company that specializes in providing integrated software and technology management solutions. With a market cap of $13.6 billion, TYL designs, develops, markets, and supports a variety of software solutions aimed at serving mission-critical back-office functions.
Over the past 52 weeks, TYL has underperformed the broader market significantly. While the S&P 500 Index has seen a 13% increase, TYL’s shares have declined by 49%. Year-to-date, the stock is down 30.8%, while the S&P 500 has experienced marginal growth. Additionally, TYL has also lagged behind the State Street SPDR S&P Software & Services ETF (XSW), which decreased by 21.5% over the past 52 weeks and 20.2% on a YTD basis.
On February 11, TYL reported weaker-than-expected Q4 results, causing its shares to drop by 15.4% in the following trading session. The company’s adjusted EPS of $2.64 fell short of consensus estimates of $2.71, and its revenue of $575.2 million missed analyst expectations by 2.4%.
Looking ahead to fiscal 2026, analysts anticipate TYL’s EPS to grow by 13.2% year-over-year to $9.97. While the company’s earnings surprise history is mixed, with three out of the last four quarters beating consensus estimates, analysts remain bullish on the stock. Among the 22 analysts covering TYL, the consensus rating is a “Strong Buy,” with 16 “Strong Buy,” one “Moderate Buy,” and five “Hold” ratings.
The sentiment around TYL has grown more positive in recent months, with 15 analysts now suggesting a “Strong Buy” rating. On February 17, Peter Heckmann from D.A. Davidson reiterated a “Buy” rating on TYL, setting a price target of $460, indicating a potential upside of 46.8% from current levels.
The mean price target of $459.65 implies a 46.7% potential upside, while the street-high price target of $675 suggests an ambitious 115.4% potential upside. It is important to note that on the date of publication, Neharika Jain did not hold any positions in the securities mentioned in this article. All information provided is for informational purposes only. This article was originally published on Barchart.com.
