Tyler Technologies Expected to Report Solid First Quarter Earnings

With a market cap of $22.5 billion, Tyler Technologies, Inc. (TYL) offers a range of integrated software and technology solutions for the public sector. The company operates across two main segments: Enterprise Software and Platform Technologies. Their product offerings include cloud and on-premise solutions for financial management, public safety, courts, property appraisal and tax, K-12 education, regulatory management, cybersecurity, and data insights. Additionally, Tyler has established a cloud partnership with Amazon Web Services.

Tyler Technologies, based in Plano, Texas, is scheduled to announce its fiscal Q1 2025 earnings on Wednesday, April 23. Analysts project that TYL will report a profit of $1.95 per share, representing a 12.1% increase from $1.74 per share in the same quarter last year. TYL has consistently surpassed Wall Street’s earnings expectations, having exceeded forecasts in the last four quarters. In Q4 2024, the company beat the consensus EPS estimate by 2.2%.

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For the entirety of fiscal 2025, analysts anticipate that the information management software provider will report EPS of $8.55, which is a 12.8% increase from $7.58 in fiscal 2024. In addition, EPS is expected to rise by 15.1% to reach $9.84 in fiscal 2026.

Over the past year, shares of Tyler Technologies have risen by 23.4%, significantly outperforming the broader S&P 500 Index’s ($SPX) 4.5% decline and the Technology Select Sector SPDR Fund’s (XLK) 12.7% drop during the same timeframe.

Following its Q4 2024 earnings release on February 12, shares of Tyler Technologies surged over 5.9%. This was prompted by reported revenue of $541.1 million and a 28.6% year-over-year increase in adjusted EPS to $2.43. Investors were further encouraged by a 23.0% growth in SaaS revenues, a 14.9% increase in recurring revenue to $463.9 million, and a remarkable 60.7% rise in free cash flow to $216.0 million. Factors such as strong operational efficiencies and the successful execution of its cloud-first strategy contributed to heightened investor confidence. Management’s optimistic guidance for 2025, projecting total revenue and adjusted EPS between $10.90 – $11.15, further fueled this optimism.

The general consensus among analysts on Tyler Technologies Stock continues to be positive, featuring an overall “Strong Buy” rating. Out of 17 analysts monitoring the Stock, 12 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and four advise “Holds.” Currently, TYL is trading below the average analyst price target of $708.12.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data presented herein is for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

 

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