Tyler Q3 FY26: revenue up 8.7%, record free cash flow of $277.0 million
Tyler's third quarter was a margin and cash story rather than a growth story: revenue rose 8.7% to $647.6 million while GAAP operating margin climbed to 18.1% from 16.4%. Non-GAAP EPS of $3.52 landed within a cent of the $3.5132 consensus, so the quarter was a meet, not a beat. Read the numbers as steady, cash-rich compounding.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $2.33 rose 12.7%, and non-GAAP EPS of $3.52 finished just above the $3.5132 consensus — a rounding-error beat, not a real one. Net income of $95.1 million rose 12.7% on revenue growth of 8.7%, helped by a diluted share count that fell to 40.7 million from 43.8 million a year ago.
Revenue of $647.6 million grew 8.7% year over year, and the mix keeps improving: subscriptions rose 15.3% to $462.6 million while maintenance fell 4.6% to $106.2 million. Recurring revenue of $568.8 million was 87.8% of the total. That mix shift is why gross margin rose to 49.1% from 47.2%.
Tyler held full-year revenue guidance at $2.535 billion to $2.565 billion, the same $2.55 billion midpoint it has used for three straight quarters. Nine-month revenue is already $1.906 billion, so the implied fourth quarter is roughly $629 million to $659 million — a step below the $647.6 million just delivered. Full-year non-GAAP EPS of $12.95 to $13.20 similarly implies $3.16 to $3.41 in Q4 versus $3.52 now.
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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 2026-11-03
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