Key statistics

Is TYL a good stock to buy in 2026?

Tyler Technologies (TYL) stock presents a compelling case for investors in 2026, with a strong analyst consensus indicating a “Buy” rating and a significant 51.9% upside to its target price of $453.45. Despite a P/E ratio of 40.41x, which might seem high in isolation, it is notably below the sector average of 71.2x, suggesting a relative value opportunity. Furthermore, a discounted cash flow (DCF) analysis pegs TYL at a fair value of $392.04, indicating it is currently undervalued by 31.3%.

2026 TYL price scenarios

Based on analyst consensus of $453.45 from 37 analysts. Not a prediction by Alert Invest.

About Tyler Technologies, Inc. (TYL)

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. The company operates in three segments: Enterprise Software; Appraisal and Tax; and NIC.

Under the leadership of CEO H. Lynn Moore Jr., Tyler Technologies has solidified its position as a leading provider of mission-critical software and services to state and local governments. The company’s distinctive strength lies in its deep understanding of public sector needs, offering comprehensive solutions that streamline operations, enhance citizen services, and improve data management for its diverse client base. This specialized focus contributes to strong customer relationships and recurring revenue streams.

TYL competitive moat and business analysis

Tyler Technologies maintains a substantial competitive advantage through its specialized expertise and established presence within the public sector. The high switching costs for government entities, coupled with the complex and tailored nature of its software solutions, create a durable moat. With a net margin of 13.26%, TYL demonstrates efficient operations, although a direct ROE/ROIC comparison is N/A from the provided data. This robust profitability underscores its strong market position.

Tyler Technologies operates across three primary segments: Enterprise Software, Appraisal and Tax, and NIC. While specific revenue breakdowns for each segment or geographical distribution were not provided for fiscal year 2025, these segments collectively address critical needs for government agencies, from financial management and court administration to property assessment and online government services. This diversified portfolio within a niche market contributes to its stability.

The company’s competitive moat appears to be strengthening, supported by a healthy revenue growth of 9.1% year-over-year. This consistent growth suggests increasing demand for its integrated solutions as public sector organizations continue their digital transformation journeys. Tyler’s ability to innovate and adapt its offerings for a highly regulated and often complex client base is key to this trend.

When comparing TYL to its peers, it’s evident that its dedicated public sector focus sets it apart. While companies like TYL vs BSY (Blackbaud, Inc., focusing on the social good community) and TYL vs CDW (CDW Corporation, an IT solutions provider across sectors) offer software or IT services, Tyler’s deep specialization gives it an edge in contracts and client retention. Even against a cybersecurity player like TYL vs CHKP (Check Point Software Technologies Ltd.), TYL’s distinct market ensures less direct competition within its core offerings.

Tyler Technologies, Inc. analyst rating

Based on 37 analysts. 67.6% rate TYL Buy or Strong Buy.

A 67.6% “Buy” rating from analysts is generally considered a strong endorsement, particularly within the competitive Technology sector. This high level of confidence suggests that a significant majority of professional analysts believe TYL stock is poised for appreciation in the coming year.

Is TYL undervalued or overvalued?

Analyzing TYL valuation, the stock appears to be significantly undervalued compared to its sector peers. Its P/E ratio of 40.41x is a considerable discount when set against the Software – Application sector average of 71.2x. This 30.8x discount suggests that the market may not be fully appreciating TYL’s earnings power relative to its industry, presenting a potential opportunity for investors seeking value.

Furthermore, a discounted cash flow (DCF) analysis estimates TYL’s fair value at $392.04, indicating a substantial 31.3% upside from its current price. While the P/B ratio of 3.59x and P/S ratio of 5.29x indicate a fair valuation, the robust FCF yield of 5.46% and the DCF model collectively paint a picture of a quality company with an attractive valuation.

TYL financial health & key metrics

For value investors, Tyler Technologies (TYL) stock presents an interesting profile characterized by strong financial health and a compelling valuation. The company boasts an impressively low debt-to-equity ratio of 0.01x, indicating minimal financial leverage and robust balance sheet strength. Coupled with a strong free cash flow (FCF) yield of 5.46% and an undervalued DCF fair value of $392.04, TYL demonstrates sound fundamentals that could appeal to those seeking stability and long-term potential in their investments.

Tyler Technologies, Inc. earnings history & next report

Tyler Technologies, Inc. reported EPS of $3.09, beating estimates by 2.66%. Next earnings: 2026-07-29 with EPS estimate of $3.23.

Investors should closely watch Tyler Technologies’ next earnings report on 2026-07-29, where analysts are estimating an EPS of $3.23. The previous quarter saw TYL beat estimates by 2.66%, indicating a consistent ability to exceed expectations, and a similar performance could further bolster positive sentiment for TYL stock.

TYL daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

TYL insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent TYL analyst rating changes

Tyler Technologies, Inc. stock news today

How does TYL compare to its peers?

When evaluating TYL stock, it’s beneficial to compare its performance and market position against other players in the broader Technology sector, particularly those in related software and IT services industries. While Tyler Technologies holds a unique niche in the public sector, examining its peers provides context for its valuation and growth trajectory.

FAQ — Tyler Technologies, Inc. (TYL) stock