Tyler Technologies' stock experienced a significant 24-hour plunge of 7.28% on Wednesday, with the sharp decline primarily occurring in post-market trading following the release of the company's fourth-quarter 2025 financial results.

The sell-off was triggered by Tyler Technologies reporting quarterly results that fell short of analyst expectations. The company posted adjusted earnings per share of $2.64, missing the consensus estimate of approximately $2.72. Quarterly revenue of $575.2 million also came in below the expected $591 million.

Further pressuring the stock was the company's downbeat guidance for full-year 2026. Tyler Technologies forecast revenue between $2.50 billion and $2.55 billion, below Wall Street expectations of $2.56 billion. The company also expects slower subscription revenue growth of 12-15% compared to analyst expectations of 15.4% growth.

The disappointing outlook reflects concerns about government entities paring back software budgets due to economic uncertainty. As a provider heavily reliant on public sector clients, Tyler Technologies faces pressure from tighter government budgets and extended procurement processes, which are slowing cloud migration projects and overall software spending.