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Tyler Technologies, Inc. (TYL), with a market capitalization of $27 billion, specializes in integrated information-management solutions for the public sector, serving federal, state, and local agencies, school districts, and government offices. The Texas-based company’s software solutions span Financial Management, Education, Courts and Justice, Public Safety, Property Appraisal and Tax, and more.
Shares of TYL have outperformed the broader market over the past year. TYL has gained 39.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17.5%. In 2025, TYL shares are up 6.9%, while SPX shares are up 1.3% on a YTD basis.
Narrowing the focus, TYL has outperformed the SPDR S&P Software & Services ETF (XSW). The exchange-traded fund has gained 16.2% over the past year but dipped 5.2% this year.
On Feb. 12, Tyler Technologies posted its Q4 earnings, with revenue climbing 12.5% year-over-year to $541.1 million. Recurring revenue accounted for 85.7% of the total, reaching $463.9 million, while subscription revenue surged 21.9% to $348.8 million, fueled by a 23% jump in SaaS and a 20.9% rise in transaction-based revenues. Non-GAAP net income grew 31.2% to $106.7 million, or $2.43 per share, and free cash flow soared 60.7% to $216 million.
Looking ahead, the company projects 2025 revenues between $2.30 billion and $2.34 billion, with subscription revenues expected to grow by 15% to 18%. Non-GAAP diluted earnings per share are expected to be in the range of $10.90 to $11.15. Impressed by the strong financial results, investors drove the stock up 6% in the following trading session.
For the current fiscal year, ending in December, analysts expect TYL’s EPS to grow 12,4% to $8.52 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering TYL stock, the consensus rating is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buys,” and three “Holds.”
This configuration is slightly less bullish than two months ago, with 13 suggesting a “Strong Buy.”
On Feb. 14, Truist Financial Corporation (TFC) analyst Terry Tillman raised Tyler Technologies' price target to $775 from $685 while maintaining a “Buy” rating. The company delivered a strong Q4 and continues to see strong demand as government clients accelerate cloud adoption.
TYL’s mean price target of $705.62 represents a premium of 14.5% from the current market prices. The Street-high target of $785 implies a potential upswing of 27.3%.
