A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, Tyler Technologies generated $645.10M in revenue (up 8.2% YoY) and $93.51M in net income (up 10.5% YoY), driven by a 22% growth in SaaS subscription revenues.
Revenue
$645.1M
+8.22% YoY
EPS (Diluted)
$2.23
+15.54% YoY
Gross Margin
47.6%
+1.8 pts YoY
Operating Income
$95.09M
-0.52% YoY
Tyler Technologies (TYL) reported Q2 FY2026 revenue of $645.1M, up 8.2% year over year. The company posted net income of $93.51M, up 10.5% from a year earlier, with diluted EPS of $2.23. Gross margin was 47.6%. Operating income was $95.09M, down 0.5% year over year. TYL's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Tyler Technologies reported solid Q2 FY2026 revenue growth of 8.2% to $645.10M and 10.5% net income growth, supported by expanding SaaS subscriptions and active balance sheet restructuring.
Last 4 quarters: 2 beats, 2 misses
Adjusted (non-GAAP) EPS of $3.08 versus the $3.10 analyst consensus — a -0.6% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.23.
Subscriptions revenue grew 12.0% YoY to $453.72M in Q2 FY2026, led by a 22% YoY surge in SaaS fees to $230.64M due to new client wins, on-premises client migrations, and annual price increases.
Source: 10-Q Item 2 MD&A, p.33-34
ARR reached $2.24B as of June 30, 2026, representing an 8% YoY increase compared to $2.07B as of June 30, 2025, driven by the ongoing shift toward SaaS offerings.
Source: 10-Q Item 2 MD&A, p.32
In May 2026, TYL issued $1.44B of 0.50% Convertible Senior Notes due 2031, repaid $600.0M of maturing 2026 notes in cash, and repurchased $504.9M of common stock during Q2 FY2026.
Source: 10-Q Item 2 MD&A, p.31, 44
TYL acquired the remaining equity of For the Record (FTR) on April 14, 2026, recognizing a non-operating gain of $25.05M on the remeasurement of its previously held equity interest.
Source: 10-Q Item 2 MD&A, p.31, 40
Disruption from cyber-attacks, security breaches, software updates, or improper data security surrounding AI tools could harm TYL's competitive position and cause significant liabilities.
Source: 10-Q Item 2 MD&A, p.30
Changes in local, state, and federal government agency budgets or regulatory standards can negatively impact government IT spending and delay procurement cycles.
Source: 10-Q Item 2 MD&A, p.30
The Q4 2025 wind-down of a state payment processing contract reduced transaction-based revenues by $12.5M in Q2 FY2026 and $24.8M year-to-date.
Source: 10-Q Item 2 MD&A, p.34
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Tyler Technologies (TYL) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the TYL earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $645.1M | $596.12M | +8.22% |
Cost of Revenue | $338.04M | $322.93M | +4.68% |
Gross Profit | $307.06M | $273.18M | +12.40% |
Operating Income | $95.09M | $95.6M | -0.52% |
Net Income | $93.51M | $84.63M | +10.50% |
EPS (Basic) | $2.25 | $1.96 | +14.80% |
EPS (Diluted) | $2.23 | $1.93 | +15.54% |
Tyler Technologies reported Q2 FY2026 total revenue of $645.10M (up 8.2% YoY) and net income of $93.51M (up 10.5% YoY). Growth was anchored by a 22% increase in SaaS fee revenue, bringing ARR to $2.24B.
TYL achieved revenue of $645.10M and diluted EPS of $2.23, up 15.5% YoY. Gross margin improved to 47.60% from 45.83% in Q2 FY2025, while operating margin fell to 14.74% due to higher R&D and legal expenses.
TYL issued $1.44B in 0.50% Convertible Senior Notes due 2031, settled $600.0M of maturing 2026 notes in cash, repurchased $504.9M in common stock, and secured a $1.0B unsecured credit facility.
TYL highlighted risks related to cyber-attacks and AI data management, public sector procurement and budget cycles, and the revenue loss from the late-2025 wind-down of a state payment processing contract.
Tyler Technologies (TYL) is next expected to report earnings on Oct 27, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
Tyler Technologies delivered solid Q1 FY2026 results with revenue up 8.6% YoY to $613.5M and operating income rising 11.9%, while the company deployed $250M in share buybacks and generated $107.3M in operating cash flow.
Tyler Technologies (TYL) delivered strong FY2025 results with revenue growing 9.1% to $2.33B, net income surging 20.0% to $315.6M, and gross margin expanding 270 basis points to 46.5%, reflecting continued momentum in its government software platform.
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