Tyler Technologies, Inc. (TYL) Stock Price & How to Invest
Last updated July 2026
Short answer
Tyler Technologies (TYL) is the largest pure-play software company serving U.S. state and local government, and investors typically approach it as a durable, recurring-revenue compounder riding a nearly complete shift from licenses to SaaS and transaction fees.
TYL stock price
As of 2026-07-22, Tyler Technologies, Inc. (TYL) last closed at $284.27, down 49.7% over the past year. Over the past 52 weeks it has traded between $275.27 and $611.76.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Tyler Technologies, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Tyler Technologies, Inc. (TYL) do?
Tyler Technologies builds and operates mission-critical software for the U.S. public sector, spanning appraisal and tax, courts and justice, enterprise financials (ERP), planning and regulatory, public safety, records and document management, transportation, and payments and data products. Its customers are cities, counties, courts, school districts, and state agencies, markets defined by long procurement cycles, multi-year implementations, and high switching costs that structurally favor the incumbent. Tyler reports more than 45,000 installations across 15,000 locations in all 50 states and led the global state-and-local-government software market with roughly an 11% share.
The investment picture centers on Tyler's transition from perpetual licenses to cloud subscriptions and embedded payments, which has lifted recurring revenue to the large majority of the total and pushed annualized recurring revenue past $2.1 billion. Recurring and transaction revenue carry high gross margins and improving free-cash-flow conversion, giving the model a long, visible runway. The tradeoff is valuation: TYL has historically traded at a rich multiple, and while shares reset lower in 2026 on slower public-sector deal activity and a broader software de-rating, the stock still prices in years of steady mid-to-high single-digit revenue growth and margin expansion.
What's driving Tyler Technologies, Inc. (TYL)?
1. SaaS and cloud transition
Nearly all new contracts are now SaaS rather than on-premise licenses, and SaaS revenue grew more than 20% year over year in Q1 2026. As legacy maintenance customers migrate to subscriptions, Tyler captures higher lifetime value per client and steadier, more predictable revenue.
2. Payments and transaction revenue
Tyler embeds payment processing and transaction-based services (court fees, licenses, utility and tax payments) into its software, adding a usage-linked revenue stream on top of subscriptions. This layer scales with citizen and government activity and deepens the platform's stickiness.
3. Recurring revenue and free cash flow
Recurring revenue makes up the large majority of the total and annualized recurring revenue surpassed $2.1 billion, growing around 10%. Free cash flow more than doubled year over year in Q1 2026, improving the free-cash-flow margin and giving management room for buybacks and tuck-in acquisitions.
4. Public-sector demand and AI-enabled products
Government IT modernization budgets and the difficulty of replacing entrenched systems support long-run demand, and Tyler is layering AI and data-and-insights products onto its installed base. Cross-selling new modules into existing clients is a lower-cost growth path than winning greenfield contracts.
What are the risks to Tyler Technologies, Inc. (TYL)?
Tyler trades at a premium valuation, so any slowdown in bookings, cloud migration, or transaction volumes can compress the multiple sharply, as the 2026 share-price reset showed. Its revenue is concentrated in U.S. state and local government, which ties results to public budgets, election cycles, and sometimes lengthy procurement delays. Growth is increasingly dependent on payments and transaction volumes that can vary with economic activity. Competition comes from cloud-native government-software startups (OpenGov, Accela, Granicus, CentralSquare) and specialized regional vendors chipping at specific product lines. Execution risk around integrating acquisitions and completing the on-premise-to-cloud migration remains a live factor.
How is Tyler Technologies, Inc. (TYL) valued? (approximate, July 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Tyler Technologies, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$2.4B
- Q1 2026 revenue: ~$613M (up ~9% YoY)
- Annualized recurring revenue: ~$2.15B (up ~10%)
- Non-GAAP EPS (Q1 2026): ~$3.09 (up ~11% YoY)
- Market cap: ~$13-14B
- P/E (TTM): ~44x
Tyler posted record Q1 2026 revenue near $613 million with SaaS revenue up more than 20% and free cash flow roughly doubling year over year. Management guided full-year 2026 revenue to roughly $2.54 to $2.58 billion and non-GAAP EPS to about $12.50 to $12.75. The ~44x trailing multiple is well below Tyler's multi-year historical average, reflecting the 2026 software de-rating even as fundamentals kept growing.
Who competes with Tyler Technologies, Inc. (TYL)?
Cloud-native government software vendors
Companies like OpenGov, Accela, Granicus, NEOGOV, and Euna Solutions target specific public-sector workflows (permitting, ERP, procurement, HR) with modern cloud platforms, competing for the same modernization budgets Tyler pursues.
Legacy and public-safety software providers
CentralSquare Technologies, BS&A, Fast Enterprises, CivicPlus, and Civica overlap with Tyler across public safety, tax, ERP, and administrative systems, often competing on installed-base relationships and regional presence.
Large enterprise software vendors
Broad players such as Oracle, Workday, SAP, and Salesforce address government selectively rather than as a pure focus, so they compete mainly on large ERP or platform deals rather than Tyler's full public-sector suite.
How to invest in Tyler Technologies, Inc. (TYL)
There are three common ways to get TYL exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so TYL sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where TYL fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Tyler Technologies, Inc. (TYL)
TYL is a sticky, high-margin government-software incumbent whose story now hinges on cloud and transaction revenue continuing to compound against a premium (though reset) valuation.
More on Tyler Technologies, Inc. (TYL)
Whether TYL is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is TYL a buy?, and where the stock could go from here in the TYL stock forecast.
For income investors, whether TYL pays a dividend and how the payout looks is covered in does TYL pay a dividend?
Build a basket around TYL with Walnut
Use Tyler Technologies, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Tyler Technologies do?
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Tyler builds software for U.S. state and local government, covering courts and justice, appraisal and tax, ERP financials, public safety, permitting, records, and payments. It is the largest pure-play public-sector software company in North America.
How does Tyler Technologies make money?
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Revenue comes from SaaS subscriptions, transaction and payment fees, maintenance and support, and professional services. Recurring revenue (subscriptions, transactions, and maintenance) now makes up the large majority of the total.
Is Tyler Technologies profitable?
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Yes. Tyler reported non-GAAP EPS of about $3.09 in Q1 2026, up roughly 11% year over year, and free cash flow that more than doubled versus the prior year, lifting its free-cash-flow margin.
Why did TYL stock fall in 2026?
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Shares reset lower in 2026 amid a broad de-rating of software valuations and slower deal activity with some public-sector clients, even though revenue, ARR, and free cash flow continued to grow.
What is Tyler's annualized recurring revenue?
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Annualized recurring revenue reached about $2.15 billion in Q1 2026, up roughly 10% year over year, driven by SaaS growth of more than 20% as customers migrate from on-premise licenses.
Who are Tyler Technologies' main competitors?
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Direct rivals include cloud-native government vendors like OpenGov, Accela, and Granicus, plus legacy providers such as CentralSquare and Civica. Large vendors like Oracle and Workday compete selectively on big ERP deals.
Is TYL stock expensive?
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TYL traded around 44x trailing earnings in mid-2026, below its multi-year historical average but still a premium to the broader market, reflecting its recurring-revenue quality and steady growth expectations.
What are the biggest risks for Tyler Technologies?
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Key risks include a premium valuation sensitive to any growth slowdown, concentration in U.S. government budgets and procurement cycles, reliance on transaction volumes, and competition from cloud-native government-software startups.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Tyler Technologies, Inc.'s investor relations page or your broker before making investment decisions.