Tyler to Report Q2 Earnings: What's in the Offing for the Stock?

Tyler Technologies, Inc. TYL is scheduled to report second-quarter 2025 results on July  30, after market close.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $586.2  million, implying an 8.4% increase from the year-ago quarter.

The consensus mark for earnings is pegged at $2.78 per share, indicating an increase of 15.8% from the year-ago quarter. The bottom-line estimate has remained unchanged over the past 60 days.

TYL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.8%.

Tyler Technologies, Inc. Price and EPS Surprise

Tyler Technologies, Inc. price-eps-surprise | Tyler Technologies, Inc. Quote

Factors to Note Ahead of Tyler Technologies’ Q2 Results

Tyler Technologies’ second-quarter revenues are likely to have been driven by sustained demand for subscription-based software-as-a-service (SaaS) products, as the public sector continues its shift from on-premise and backdated systems to scalable cloud-based frameworks. Our estimate for the company’s second-quarter Subscription segment revenues is pegged at $387.6 million, indicating a year-over-year increase of 16.1%.

Nevertheless, the ongoing transition to SaaS is likely to have pressured TYL’s Software Licenses and Royalties segment revenues. Our estimate for the segment’s second-quarter revenues is pegged at $4.4 million, indicating a 16.7% year-over-year decline.

For Professional Services’ second-quarter revenues, our estimate is pinned at $71 million, indicating a year-over-year decline of 1.3%. Our estimate of $110 million for the Maintenance segment’s second-quarter revenues implies a year-over-year decrease of 4.6%. Overall, our estimate for the company’s total Subscriptions, Professional Services, Licenses and Royalties segment, and Maintenance revenues, which include all four abovementioned segments, is pegged at $568.5 million. The figure indicates a year-over-year increase of 9.1%.

Macroeconomic uncertainties and geopolitical issues might have negated Tyler Technologies’ business during the second quarter. Still-high interest rates and persistent inflationary conditions are expected to have led public sectors to postpone procurement processes and lengthen sales cycles, which might have hurt the company’s top line in the quarter under review.

The acceleration in the shift to the cloud in the new business and the related decline in license revenues are likely to have weighed on gross margins.

Earnings Whispers for Tyler Technologies

Our proven model does not conclusively predict an earnings beat for Tyler Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Though TYL carries a Zacks Rank #3, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Meta Platforms META is set to report second-quarter 2025 results on July 30. It has an Earnings ESP of +1.65% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Meta Platform’s second-quarter earnings per share (EPS) is pegged at $5.83 and has been revised upwards over the past 30 days, indicating an increase of 12.98% from the year-ago quarter’s reported figure. Shares of Meta Platforms have soared 22.3%, year to date.

Lam Research LRCX has an Earnings ESP of +2.71% and a Zacks Rank #2 at present.

It is set to report fourth-quarter 2025 results on July 30. The Zacks Consensus Estimate for Lam Research’s fourth-quarter EPS is pegged at $1.2, unchanged over the past 60 days. Shares of Lam Research have risen 34.9%, year to date.

Seagate Technology STX is set to report fourth-quarter fiscal 2025 results on July 29. It has an Earnings ESP of +2.34% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Seagate Technology’s fourth-quarter earnings is pegged at $2.46 per share, revised upward by a penny over the past 30 days. The consensus mark indicates a year-over-year increase of 134.29%. Seagate Technology’s shares have surged 76.8%, year to date.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research