$TYL · TYLER TECHNOLOGIES INC
Tyler Technologies reported Q3 FY2026 results with total revenues of $647.6M (+8.7% YoY), non-GAAP diluted EPS of $3.52 (+10.0% YoY), and record quarterly free cash flow of $277.0M. The company provided full-year 2026 guidance including total revenues of $2.535B–$2.565B and non-GAAP diluted EPS of $12.95–$13.20.
- Total revenues of $647.6M, up 8.7% YoY, with recurring revenues at $568.8M (87.8% of total).
- SaaS revenues grew 21.2% to $242.2M; transaction revenues grew 9.5% to $220.4M.
- GAAP diluted EPS of $2.33; non-GAAP diluted EPS of $3.52, up 10.0% YoY.
- Record quarterly free cash flow of $277.0M, up 11.9% YoY.
- Repurchased 1.15M shares for ~$379M in Q3; ~$1.37B remaining under buyback authorization.
Extended-hours trading shows TYL at $340.01, down 5.79% from the regular-session close of $360.90, suggesting the market is reacting negatively despite solid headline numbers — possibly due to the full-year non-GAAP EPS guidance range of $12.95–$13.20 implying a Q4 midpoint below consensus expectations.
A ~6% after-hours drop on a $14.8B market-cap S&P 500 company despite double-digit SaaS growth and record free cash flow signals the market is punishing forward guidance that implies decelerating Q4 earnings.
Tyler's 21.2% SaaS growth and 87.8% recurring revenue mix reinforce the gov-tech sector's ongoing shift to cloud-based solutions, though the after-hours selloff suggests valuation sensitivity around forward guidance.
Forward-looking risks flagged include public sector budget changes impacting IT spending, AI-related regulatory and adoption risks, cybersecurity threats, and integration risks from acquisitions like CODY Systems.