Feb 11 (Reuters) - Tyler Technologies TYL.N forecast full-year 2026 revenue below Wall Street expectations on Wednesday, as government entities pare back budgets owing to economic uncertainty, sending the software developer's shares down over 8% in extended trading.

The company, heavily reliant on public sector, is exposed to budget cycles across U.S. state, county and municipal governments, with economic slowdown or funding shortfalls potentially pressuring bookings and organic growth.

There have been rising concerns about the pace of cloud migrations over the next two years, as governments take longer to approve projects amid tighter budgets and extended procurement processes.

For 2026, the company expects revenue of between $2.50 billion and $2.55 billion, below expectations of $2.56 billion, according to data compiled by LSEG.

It expects annual subscription revenue to grow between 12% and 15%, while analysts expect a growth of 15.4%.

For the fourth quarter, Tyler reported revenue of $575.2 million, missing analysts' average expectation of $591.1 million.

Adjusted earnings per share for the quarter came in at $2.64, missing estimates of $2.72.

(Reporting by Arnav Mishra in Bengaluru; Editing by Vijay Kishore)

((Arnav.Mishra@thomsonreuters.com;))