Tyler Technologies stock plummeted 8% due to Q4 earnings and revenue falling short of expectations

LootboxPhobia · 2026-02-11T22:27:25+00:00

Tyler Technologies' Q4 earnings fell short of analyst expectations, with the stock plunging 8%. Adjusted earnings per share were $2.64, and revenue was $575.2 million, both below expectations. Nevertheless, subscription and SaaS revenue grew strongly, and contract revenue and free cash flow performed well. The company's guidance for fiscal year 2026 is slightly below analyst forecasts.

LootboxPhobia

2026-02-11 22:27:25

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New York - Tyler Technologies, Inc. (NYSE:TYL) reported fourth-quarter earnings that missed analyst expectations, causing the stock to plummet 8% as investors reacted to the disappointing results and cautious guidance for 2026.

The public sector software provider posted adjusted earnings of $2.64 per share for the quarter, below the analyst consensus of $2.72. Revenue was $575.2 million, short of the consensus estimate of $591.03 million, despite a 6.3% year-over-year increase. The company recorded a $9.7 million non-cash reserve related to previously disclosed contract disputes, impacting non-operating income and operating profit.

Despite the earnings miss, Tyler Technologies emphasized its strong subscription business performance, with SaaS revenue up 20.2% to $208.3 million and transaction-based revenue up 12.1% to $196.7 million. Recurring revenue accounted for 89.4% of total revenue, up 10.9% year-over-year to $514.4 million.

“We closed 2025 with a solid fourth quarter, and our key performance indicators—recurring revenue and free cash flow—both exceeded expectations,” said Tyler President and CEO Lynn Moore. “SaaS revenue grew over 20%, and free cash flow reached a new quarterly high of $237 million.”

For fiscal 2026, Tyler Technologies provided an adjusted earnings guidance of $12.40 to $12.65 per share, compared to the analyst consensus of $12.57. The company expects revenue between $2.5 billion and $2.55 billion, slightly below the analyst estimate of $2.557 billion.

In the fourth quarter, the company completed two acquisitions—CloudGavel and Edulink—totaling approximately $54 million in cash, continuing its strategy of expanding capabilities and serviceable markets through targeted acquisitions.

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