ALTSTATION.IO

Tyler Technologies, Inc. (TYL) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$342.48

Change

+0.47%

Market Cap

$14.82B

Avg Volume

442.2K

Company Overview

Tyler Technologies, Inc. provides integrated software solutions primarily for the public sector. Their products include a range of applications for public administration, property tax management, public safety, and K-12 education. Customers are mainly government agencies, non-profit organizations, and educational institutions that rely on their technology for efficient operations. Tyler has also ventured into areas like cybersecurity and digital solutions, aiming to streamline processes like billing and permits.

Tyler Technologies is a market leader in the public sector software space, boasting around a 10% market share. Their edge comes from a comprehensive suite of products tailored for the unique needs of public agencies, which allows them to establish customer loyalty and long-term contracts. However, competition is fierce from both established players and emerging startups, particularly in the cloud services and cybersecurity domains. Their partnership with Amazon Web Services for cloud hosting strengthens their product offerings but also exposes them to competitive pressures in the rapidly changing tech landscape.

Currently, Tyler Technologies is in a growth phase, with recent quarterly earnings showing a revenue increase of approximately 15% year-over-year. This growth is supported by ongoing demand for public sector digitization and an expanding customer base. The company has been actively investing in R&D to enhance their platform technology, indicating a strategic pivot towards more integrated and innovative solutions. This focus on technology development, paired with strategic acquisitions, positions them well for continued success.

Key Financials

Market Cap

$14.82B

Revenue

$2.30B

EBITDA

$461.08M

Gross Margin

46.1%

Profit Margin

13.7%

Revenue Growth

9.7%

Total Cash

$950.82M

Total Debt

$643.45M

Free Cash Flow

$474.56M

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

47.63

Forward P/E

27.26

Beta

0.90

52-Week High

$661.31

52-Week Low

$320.23

EPS

$7.19

50-Day Avg

$439.94

200-Day Avg

$518.55

Price/Book

4.09

Technical Analysis

Over the past 52 weeks, Tyler Technologies, Inc. (TYL) has exhibited a strong downward trend, with the stock price declining from nearly $600 to the current level of $342.48, representing a 43.1% decrease. Key resistance levels appear around $600—where the stock found multiple peaks—while support is evident near the $340 mark, a level the price has recently approached. The chart shows a clear descending triangle formation, indicating ongoing selling pressure and potential for further declines if the support at $340 breaks. In the last few weeks, the momentum has remained bearish, as evidenced by continued testing of this support level. Currently, the stock is trading approximately 43% below its 52-week high of $600, implying significant downside risk and a lack of bullish conviction in the near term. This positioning suggests that traders may be cautious, with the potential for a further breakdown if the support does not hold.

Recent News and Developments

Here are the latest news and developments for Tyler Technologies, Inc

(TYL) stock in the past week (February 1-7, 2026):

1. Tyler Technologies Authorizes New $1 Billion Share Repurchase Plan

On February 4, 2026, Tyler Technologies announced that its Board of Directors approved a new share repurchase program, authorizing the company to buy back up to $1 billion of its Class A common stock. This plan is effective immediately and replaces all prior repurchase authorizations. The company indicated that this action underscores its confidence in its business and strategic objectives, reflecting management’s view that the shares are currently undervalued.

2. Acquisition of Digital Court-Recording Pioneer “For The Record”

Tyler Technologies entered into a definitive agreement to acquire For The Record, a leading provider of digital court-recording and speech-to-text technologies, for approximately $212.5 million in cash. Announced on February 2, 2026, this acquisition is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals. The integration of For The Record’s SaaS solutions, including AI-enabled speech-to-text and real-time transcription, aims to enhance Tyler’s Courts & Justice portfolio and modernize courtroom operations.

Market Sentiment and Analyst Recommendations

Bull Case

Tyler Technologies is deploying capital aggressively while trading 43% below its 52-week high, signaling management confidence that shares are undervalued. The $1 billion share repurchase program announced February 4 directly addresses the valuation concern, and with $950.82M in cash against $643.45M in debt, the company has the balance sheet to execute. The For The Record acquisition for $212.5M adds AI-powered court recording and transcription to their Courts & Justice portfolio, a logical bolt-on that expands TAM in a government modernization cycle. Revenue growth of 9.7% is steady for a $2.3B software company, and Q4 2025 earnings are expected to show 11.5% EPS growth, suggesting operational leverage is kicking in. The analyst consensus of $609.81 target price implies 78% upside from current levels, and 21 analysts rate this a buy. If the company beats on February 11 earnings and provides confident guidance, the stock could break through the $400 resistance level quickly.

Bear Case

A 47.63 P/E ratio is not cheap for a company growing at single-digit revenue rates, especially when the stock has already collapsed 43% from highs and is testing support at $340. The chart shows a descending triangle with bearish momentum, meaning the recent bounce off $321.33 could be a dead cat bounce before further breakdown. Analyst targets have been cut recently—TD Cowen dropped from $650 to $600, Piper Sandler from $708 to $671—suggesting consensus is slowly repricing downward even as the company adds acquisitions. The For The Record deal at $212.5M is a meaningful cash outlay that reduces financial flexibility right when the stock is under pressure, raising questions about acquisition timing and execution risk. Government spending cycles are unpredictable, and Tyler’s customer base is entirely dependent on state and local budget priorities, creating macro vulnerability if fiscal pressures tighten. The earnings surprise track record doesn’t guarantee a beat on February 11, and a miss or weak guidance could send this stock below $320.

What to Watch

The February 11 earnings report is the immediate catalyst. Watch for EPS to hit the $2.71 consensus forecast and revenue at $589.62M—anything below those numbers risks a sharp selloff given the current technical weakness. Management guidance on 2026 revenue growth and margin expansion will determine if the 9.7% growth rate is sustainable or decelerating. Track the share buyback execution rate in Q1 2026—if Tyler commits to aggressive repurchases, it signals conviction and could provide a floor under the stock. Monitor the For The Record integration timeline and any early wins or integration challenges announced in the earnings call. Watch the $340 support level closely; a break below it on high volume would confirm the descending triangle breakdown and could trigger a test of $320. Finally, keep an eye on analyst price target revisions in the weeks following earnings—if more downgrades follow the recent cuts from Cowen and Sandler, the bull case loses momentum fast.

Analyst Consensus

BUY

Based on 21 analyst opinions

Low Target

$460.00

Mean Target

$609.81

High Target

$800.00

Earnings and Financial Data

Sector

Technology

Industry

Software – Application

Employees

7,689

Earnings & Dividends

Next Earnings

Feb 11, 2026

EPS (Trailing)

$7.19

Dividend Yield

None

Payout Ratio

Frequently Asked Questions

Is TYL a good stock to buy?

Analysts recommend buying Tyler Technologies, with a target price of $609.81, indicating a significant upside from the current price of $342.48. The stock operates in the technology sector and maintains strong growth potential.

What is TYL’s price target?

The current analyst consensus sets a price target for Tyler Technologies at $609.81. This represents a potential upside of about 78.1% from its current trading price of $342.48.

Does TYL pay a dividend?

Tyler Technologies does not pay a dividend. This aligns with its growth-oriented strategy, focusing on reinvestment rather than returning cash to shareholders.

What is TYL’s P/E ratio?

Tyler Technologies has a P/E ratio of 47.63 and a forward P/E of 27.26. These figures indicate that the stock is priced relatively high compared to its earnings, which may reflect expectations for strong future growth.

What has been TYL’s stock performance over the last year?

TYL’s stock has fluctuated between $320.23 and $661.31 over the past year. This volatility highlights market sentiment and potential risks, but also emphasizes its capacity for recovery and growth.

Related Stock Reports

Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.