• Tyler Technologies, Inc. has already reported its fourth-quarter and full-year 2025 results, with revenue rising to US$575.18 million for the quarter and US$2.33 billion for the year, while net income reached US$65.53 million and US$315.6 million respectively.
• Alongside record recurring revenue and strong SaaS momentum, the company authorized a new US$1.00 billion share repurchase program and advanced its AI initiatives and cloud transitions, reshaping its public sector software profile.
• We will now examine how this combination of slower 2026 growth guidance and a large new buyback could reshape Tyler Technologies’ investment narrative.

The latest GPUs need a type of rare earth metal called Dysprosium and there are only 30 companies in the world exploring or producing it. Find the list for free.

Tyler Technologies Investment Narrative Recap

To own Tyler Technologies today, you need to believe that governments will keep prioritizing cloud modernization, recurring software contracts and AI-enabled tools across courts, public safety and administration. The key short term catalyst is continued SaaS and transaction revenue growth, particularly from cloud “flips,” while the biggest risk is that slower government software spending and large project overruns further disrupt bookings and margin trends. The latest results and 2026 guidance materially sharpen both sides of that equation.

The new US$1.00 billion share repurchase authorization is the announcement that most directly reframes Tyler’s story here. It sits alongside record free cash flow and recurring revenue strength, and follows a sharp share price pullback, which together put more focus on how management allocates capital just as growth guidance steps down. For investors tracking catalysts, the scale and timing of this buyback now sit right next to SaaS growth and AI adoption as key near term watchpoints.

Yet behind the solid recurring revenue and new buyback, investors should be aware of the risk that government budget caution and project delays could…

Tyler Technologies' narrative projects $2.9 billion revenue and $480.4 million earnings by 2028.

Uncover how Tyler Technologies' forecasts yield a $603.14 fair value, a 98% upside to its current price.

Exploring Other Perspectives

Compared with the baseline view, the most cautious analysts were already assuming only about 9 percent annual revenue growth and US$410.6 million in earnings by 2028, so this guidance miss and slower outlook could push you to reconsider whether risks like delayed cloud flips and cautious AI adoption are closer to their more pessimistic narrative than many expected.

Explore 9 other fair value estimates on Tyler Technologies - why the stock might be worth just $398.50!

Build Your Own Tyler Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tyler Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Tyler Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tyler Technologies' overall financial health at a glance.

Seeking Other Investments?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• Explore 23 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
• Outshine the giants: these 27 early-stage AI stocks could fund your retirement.
• Uncover the next big thing with 29 elite penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.