Tyler Technologies Q3 2026: EPS beat, revenue miss, and 21% SaaS growth
As seen on the 24/7 Wall St. homepage on October 28, 2026.
The earnings beat came with revenue missing expectations, and shares reversed after hours. SaaS revenue grew 21.2%, so the growth engine is intact even with the top line short of estimates.
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Tyler Technologies posted adjusted EPS of $3.52 for Q3 2026, beating expectations, while revenue missed estimates. Shares reversed after hours as investors weighed the profit beat against the softer top line.
SaaS revenue rose 21.2%, lifting recurring revenue and expanding non-GAAP operating margin. That margin expansion is what the cloud migration thesis promised.
Free cash flow hit a record $276.98 million for the quarter, up 11.9%. Management repurchased roughly 1.15 million shares in Q3, with year-to-date buybacks at about 8.5% of shares outstanding.
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CEO Lynn Moore called the AI rollout an inflection point, citing roughly 300 signed deals containing AI tools across the government client base. R&D spending rose to $63.3 million in Q3, signaling that the pipeline investment is accelerating.
For full-year 2026, management guided to revenues of $2.535 billion to $2.565 billion. The earnings call is set for October 29 at 8:30 AM ET, with the Texas payments contract wind-down and AI deal conversion in focus.
Mentioned: TYL