Analyst Estimates: Here's What Brokers Think Of Tyler Technologies, Inc. (NYSE:TYL) After Its Second-Quarter Report

Investors in Tyler Technologies, Inc. (NYSE:TYL) had a good week, as its shares rose 4.5% to close at US$582 following the release of its second-quarter results. Tyler Technologies reported US$596m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.93 beat expectations, being 3.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Tyler Technologies from 18 analysts is for revenues of US$2.35b in 2025. If met, it would imply a modest 4.5% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 7.2% to US$7.60. In the lead-up to this report, the analysts had been modelling revenues of US$2.34b and earnings per share (EPS) of US$7.61 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Tyler Technologies

The analysts reconfirmed their price target of US$678, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Tyler Technologies, with the most bullish analyst valuing it at US$800 and the most bearish at US$570 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Tyler Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.1% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tyler Technologies.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$678, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tyler Technologies going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Tyler Technologies you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.