Analyst reiteration and valuation context
D.A. Davidson reiterated a Buy rating on shares of Tyler Technologies, assigning a $460.00 price target. According to InvestingPro data cited with the note, that target implies roughly a 51% upside from the stock's current trading level of $304.57 and aligns with InvestingPro’s Fair Value assessment that the shares are undervalued.
Quarterly results and key metrics
Tyler reported fourth-quarter results in which both revenue and adjusted EBITDA came in below analyst forecasts. The firm said two items accounted for the majority of the variance versus expectations, without providing further detail in the note. For the full year, Tyler recorded revenue of $2.33 billion, representing 9.1% year-over-year growth, and the company sustained a 46.5% gross profit margin.
Guidance and analyst adjustments
Management laid out guidance for 2026 that calls for total revenue growth in the range of 7% to 9% year-over-year and non-GAAP earnings per share growth of 10% to 12% year-over-year. The guidance explicitly did not incorporate a pending acquisition. Following the quarterly release, D.A. Davidson modestly trimmed its 2026 and 2027 total revenue and adjusted EBITDA projections but retained its Buy rating and the $460 price target.
Market reaction and peer moves
Tyler’s fourth-quarter 2025 earnings and revenue both slightly undershot consensus estimates. The company posted earnings per share of $2.64, compared with an expected $2.72, and reported revenue of $575.2 million versus a forecast of $591.03 million. In response to the results, Needham lowered its price target on Tyler to $400 while maintaining a Buy rating and noting that SaaS bookings increased 9.6% year-over-year.
Stifel also reduced its target to $400 from $550, pointing to the company's ongoing transition toward a subscription-based revenue model. Stifel analyst Parker Lane emphasized the increasing role of software-as-a-service in Tyler’s revenue composition as part of the firm’s rationale for the adjustment.
Takeaway
The cross-section of analyst notes reflects a mixture of continued confidence in long-term value, as signaled by D.A. Davidson’s unchanged Buy and high price target, alongside caution from other brokers reacting to the quarter’s disappointments and the company’s strategic shift toward SaaS. Management’s 2026 guidance and the exclusion of a pending acquisition from that outlook add further variables for investors and analysts to monitor as forecasts for 2026 and 2027 are updated.
Additional context and limitations
Where details were limited in analysts’ public comments, this article reflects only the figures and statements provided in the respective analyst notes and the company’s reported results. No additional assumptions or projections have been introduced beyond what was stated by Tyler or the covering firms.