Abstract

Tyler Technologies will release its quarterly results on February 11, 2026 Post Market; this preview consolidates the latest company guidance, segment trends, and consensus-style forecasts to frame expectations for revenue, profitability, and adjusted EPS alongside recent institutional commentary.

Market Forecast

Consensus-style expectations for the current quarter point to total revenue of $0.59 billion, a gross profit margin near last quarter’s 47.23%, a net profit margin aligning around mid-teens, and adjusted EPS of $2.73, each supported by year-over-year increases of 9.36% for revenue and 11.97% for EPS. The main business is projected to be sustained by steady subscription and maintenance flows as cloud migrations progress, with implementation backlogs supporting near-term visibility; the most promising segment remains software services, maintenance and subscriptions, which is expected to anchor revenue growth on recurring contracts and multi-year SaaS transitions.

Last Quarter Review

Tyler Technologies reported last quarter revenue of $0.60 billion, a gross profit margin of 47.23%, GAAP net profit attributable to the parent company of $84.39 million, a net profit margin of 14.16%, and adjusted EPS of $2.97, with year-over-year growth in adjusted EPS of 17.86%. A notable highlight was sustained operating discipline that delivered EBIT of $158.61 million, a modest outperformance versus prior estimates, with quarter-on-quarter net profit growth recorded at -0.28%. Main business highlights included software services, maintenance and subscriptions revenue of $0.58 billion, complemented by hardware and other at $13.65 million and software licenses and royalties at $5.10 million.

Current Quarter Outlook

Core Software Services, Maintenance and Subscriptions

Recurring revenue from software services, maintenance and subscriptions is positioned to drive this quarter’s results, supported by renewals, expansion pricing, and continued adoption of cloud delivery. With backlogs in implementation and multi-module deployments, Tyler Technologies retains near-term revenue visibility that reduces volatility and supports margin consistency. The mix shift to SaaS typically compresses near-term license revenue but expands lifetime contract value, implying resilient adjusted EPS trajectories as scale efficiencies deepen across hosting, support, and product standardization.

High-Potential SaaS and Cloud Transition

The company’s most promising growth vector remains the SaaS transition embedded in its software services, maintenance and subscriptions business, which underpins $0.58 billion of last quarter’s revenue and is associated with a mid-to-high single-digit year-over-year expansion rate. As more state and local government clients migrate core systems to the cloud, multi-year subscriptions extend revenue duration and increase attach rates for adjacent modules. This quarter’s forecasted EPS of $2.73 and EBIT of $0.15 billion reflect operating leverage from maturing cloud cohorts, even as implementation timing and ramp schedules can shape intra-quarter revenue recognition.

Stock Price Drivers This Quarter

Near-term stock performance will hinge on three elements: topline execution against the $0.59 billion revenue forecast, gross margin performance around the 47.23% baseline, and adjusted EPS delivery near $2.73. A beat on EBIT against the $0.15 billion estimate would signal continued efficiency gains from cloud operations and disciplined cost controls. Conversely, any slip in net profit margin relative to the mid-teens level, or evidence of elongated implementation cycles, could prompt investors to reassess the pace at which SaaS mix translates into earnings growth.

Analyst Opinions

Across recent institutional commentary, the majority stance is constructive, emphasizing durable demand from public sector modernization and consistency in recurring revenues. Prominent research shops highlight backlog health and a gradual improvement in operating margins as cloud cohorts scale, with an emphasis on mid-teens net margins and double-digit adjusted EPS growth. The bullish viewpoint underscores that the forecasted revenue of $0.59 billion and EPS of $2.73 are attainable given prior-quarter execution and limited churn in core government clients, while noting that incremental upside could come from faster-than-expected implementations and cross-sell momentum across justice, ERP, and civic platforms.