Tyler Technologies Q2 FY26: revenue up 8.2%, EPS in line, $1.5B buyback
Tyler Technologies delivered a steady second quarter of FY2026: revenue rose 8.2% to $645.1 million and non-GAAP EPS of $3.08 landed essentially on the $3.0893 consensus, while free cash flow hit a second-quarter record of $118.5 million. The story is durability, not acceleration: SaaS grew 21.7%, recurring revenue was 86.7% of the total, and a new $1.5 billion buyback is in place — offset by GAAP operating margin slipping to 14.7%.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $2.23 rose 10.5%, but $25.0 million of pre-tax income came from a gain on remeasurement of an equity investment that has nothing to do with operations. Non-GAAP EPS of $3.08 rose just 0.9% and matched the $3.0893 consensus almost to the cent. The reason: GAAP operating income of $95.1 million was essentially flat versus $95.6 million a year ago, as research and development jumped to $62.8 million from $50.8 million.
Revenue of $645.1 million was up 8.2% from $596.1 million a year earlier, with recurring revenue of $559.5 million equal to 86.7% of the total. Subscription revenue of $453.7 million rose 12.0%, carried by 21.7% SaaS growth to $230.6 million. The soft spots were maintenance, which fell to $105.8 million, and transaction revenue, up only 3.5%.
Tyler guides full-year 2026 revenue to $2.535 billion to $2.575 billion, a $2.555 billion midpoint that is unchanged from last quarter, and non-GAAP EPS to $12.95 to $13.20. Free cash flow margin guidance of 26% to 28% implies a far heavier cash second half than the 17.6% margin reported for the first six months. Guided research and development of $245 million to $250 million and capital expenditures of $18 million to $20 million look modest next to a $2.555 billion revenue plan.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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