TYL to Report Q4 Earnings: What's in the Cards for the Stock?

Tyler Technologies, Inc. TYL is scheduled to report fourth-quarter 2025 results on Feb. 11, after market close.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $589.6 million, implying an 8.96% increase from the year-ago quarter.

The consensus mark for earnings is pegged at $2.71 per share, indicating an increase of 11.52% from the year-ago quarter. The bottom-line estimate has remained unchanged over the past 30 days.

TYL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.31%.

Factors to Note Ahead of Tyler’s Technologies’ Q4 Results

Tyler Technologies’ fourth-quarter revenues are likely to have benefited from sustained demand for its subscription-based software-as-a-service (SaaS) offerings, as the public sector continues to modernize its technology infrastructure and migrate to scalable cloud platforms. Our estimate for the company’s fourth-quarter Subscription segment revenues is pegged at $400 million, indicating a year-over-year increase of 14.7%.

The ongoing transition to SaaS is likely to have pressured TYL’s Software Licenses and Royalties segment revenues. Our estimate for the segment’s fourth-quarter revenues is pegged at $5.6 million, indicating an 8.2% year-over-year decline.

For Professional Services’ fourth-quarter revenues, our estimate is pinned at $63.9 million, indicating a year-over-year increase of 1.7%. Our estimate of $105.7 million for the Maintenance segment’s fourth-quarter revenues implies a year-over-year decrease of 8.1%.

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 $569.6 million. The figure indicates a year-over-year increase of 8.2%.

While broader macro and funding uncertainties might have continued to cause some delays in procurement decisions, Tyler’s diversified client base and resilient public sector demand are likely to have supported steady sales activity in the quarter, aiding the company’s top line in the quarter under review.

The ongoing shift toward a growing mix of SaaS and transaction-based revenues is expected to have supported margin expansion in the to-be-reported quarter.

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.

Currently, TYL has an Earnings ESP of -0.92% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:

IPG Photonics IPGP has an Earnings ESP of +15.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

IPG Photonics shares have surged 22.1% in the trailing six-month period. IPG Photonics is set to report fourth-quarter 2025 results on Feb. 12.

Lattice Semiconductor LSCC has an Earnings ESP of +3.67% and a Zacks Rank #2 at present. Shares of Lattice Semiconductor have gained 70.1% in the trailing six-month period. Lattice Semiconductor is set to report fourth-quarter 2025 results on Feb. 10.

Applied Materials AMAT has an Earnings ESP of +2.99% and a Zacks Rank #2 at present. Shares of AMAT have gained 66% in the trailing six-month period. Applied Materials is slated to report first-quarter fiscal 2026 results on Feb. 12.

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