Tyler Technologies Sees Continued Public Sector Demand, Cloud Transitions

Company outlines 2026 guidance, highlights AI initiatives and pending acquisition

Published on Feb. 13, 2026

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Tyler Technologies (NYSE:TYL) executives struck an upbeat tone on the company's fourth-quarter 2025 earnings call, pointing to continued strength in public sector demand, accelerating cloud transitions among existing customers, and expanding adoption of transaction-based services. Management also outlined 2026 guidance that calls for revenue growth at the midpoint of roughly 8%, while noting that results will lap the roll-off of a low-margin Texas payments contract.

Why it matters

As a leading provider of software and technology solutions for the public sector, Tyler Technologies' performance and outlook provide insights into the digital transformation underway in government agencies and municipalities. The company's focus on cloud migration, AI-powered citizen services, and transaction-based revenue streams highlight key trends shaping the industry.

The details

In the fourth quarter, Tyler reported total revenue of $575.2 million, up 6.3% year over year, though results included a one-time, non-cash loss reserve tied to a contract dispute. Excluding this impact, revenue growth would have been 8.1%. Recurring revenue, a key metric, grew 11% in the quarter, driven by 20.2% growth in SaaS revenue and 16.1% growth in subscription revenue overall. Total bookings in the quarter were $601 million, essentially flat year over year, but the company saw strong momentum in 'flips' of on-premises customers to its cloud offerings. Management also highlighted elevated RFP and sales demo activity as indicators of continued public sector demand.

  • For the full year 2025, total bookings increased 1.4%.
  • The State of Texas payments contract, which generated about $36 million in revenue in 2025, concluded in Q4 2025.

The players

Tyler Technologies

A provider of software and technology services for the public sector, delivering integrated systems that help government and public agencies manage operations, finances and citizen services.

Brian Miller

Chief Financial Officer of Tyler Technologies.

Lynn Moore

President and CEO of Tyler Technologies.

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What they’re saying

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What’s next

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The takeaway

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