TYL US S&P 500Russell 1000 Earnings call
Tyler Technologies (TYL) · Q2 2026 results and valuation
Share price: $425.52 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 15.2% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+15.2%
Net income vs Q1 2026
Net income 93.5M vs 81.2M
Revenue +5.1%
Against the same quarter last year (Q2 2025) it is +10.5%, so it is not just seasonal.
2 · How management spoke
Typical
More upbeat than 52% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out Nothing unusual flagged this period.
Valuation
Is Tyler Technologies undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 8.0% growth a year (3-year revenue growth), the model's fair value is $327.69 a share — the stock trades 30% above it. Today's price assumes 11.7% growth a year.
Current price
$425.52
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+11.7% for 10 yrs
Fair value / share
$327.69
Buy below
$245.77
Price vs fair value
Overvalued 30%
Price vs buy-below price
Overvalued 73%
Read between the lines
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Figure
I do not want to get too carried away because Tyler Technologies need to execute on its own SAM and then the TAM...
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Fading
Free cash flow generation and recurring revenue growth were higher in the first quarter of 2026 than in the second quarter of 2026.
Source quote
“Our first quarter results provided a strong start to 2026, with better-than-expected recurring revenue growth and free cash flow generation. Total revenues and recurring revenues both reached new record highs.”
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Fading
Client advisory board discussion and Connect showcase suggest prior hesitation around the client cloud movement is now largely in the past.
Source quote
“We had a client advisory board where we talked about the future direction of Tyler Technologies, Inc.'s client cloud movement... We showcased this at Connect, as you mentioned. I think hesitation in the past is really in the past.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I don't like to call out competitors, but we had some really nice competitive wins against some very competitive companies in Q2 and the momentum and engagement and my general...”
“Public sector demand remains healthy, supported by ongoing modernization priorities across government and continued investment in digital transformation cyber security, operational efficiency and constituent engagement.”
“We also continue to see momentum in our transactions business, made meaningful progress with our cloud operations and advance our AI strategy with growing client engagement and early customer adoption...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 645.1M | 613.5M | +5.1% | 596.1M | +8.2% |
| Gross profit | 307.1M | 296.4M | +3.6% | 273.2M | +12.4% |
| Operating income | 95.1M | 99.8M | −4.7% | 95.6M | −0.5% |
| Net income | 93.5M | 81.2M | +15.2% | 84.6M | +10.5% |
| EPS | 2.23 | 1.88 | +18.6% | 1.93 | +15.5% |
| P/E today 43.1 | 38.4 | 47.3 | −8.9 | 84.8 | −46.4 |
Topics
Most discussed now
- New Public sector demand remains healthy, supported by ongoing modernization priorities across government and continued investment in digital…
- I'd say right now, yes, communication has gone out since Investor Day to Tyler Technologies' clients.
- During this conference call, management may make statements that provide information other than historical information and may include…
- Tyler Technologies has outlined a lot of what it calls incentives for clients to flip to the cloud, and one of those...
- Tyler Technologies targets, Tyler Technologies' convertible debt offering, which enhanced its financial flexibility, significant share…
Faded since Q1 2026
- Dropped Tyler Technologies used to talk about how that was a little bit slower to move to the cloud.
- Fading Tyler Technologies had a client advisory board where it spent time talking about AI.
- Fading I am talking about things like attorney remote access and third-party data sharing, online transcript certifications, attorney insights…
- Fading Tyler Technologies is seeing now the public safety market is pretty much 100% going to the cloud.
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Other events · SEC 8-K
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Material agreement; New financial obligation; Unregistered share sale; Other events · SEC 8-K
- Other events · SEC 8-K
- Other events · SEC 8-K
- Shareholder vote results · SEC 8-K