Should I Buy TYL? TYL 2026 Analysis

Should You Buy Tyler Technologies Inc (TYL) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

380.000

1 Day change

-9.33%

52 Week Range

661.310

Analysis Updated At

2026/01/26

Tyler Technologies (TYL) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has demonstrated solid financial growth and has positive long-term prospects, the technical indicators suggest a bearish trend, and the stock is currently trading below key resistance levels. Additionally, recent analyst sentiment is mixed, with some price target reductions. Considering the investor's profile and the lack of immediate positive catalysts, holding off on purchasing now is prudent.

Technical Analysis

The technical indicators for TYL suggest a bearish trend. The MACD histogram is negative and expanding, the RSI is neutral at 39.995, and the stock is trading below its 200-day moving average. Key support is at $430.838, and resistance is at $452.887. The stock is currently trading at $434.76 in the pre-market, close to the support level, indicating potential downside risk.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Strong Q3 financial performance with revenue up 9.67% YoY, net income up 11.19% YoY, and EPS up 10.92% YoY.
Analysts from Needham and Stifel have highlighted Tyler's strong position in the public sector and durable growth potential.
The company is a leader in cloud offerings and is positioned to benefit from government digital transformation initiatives.

Neutral/Negative Catalysts

Recent analyst price target reductions from firms like Oppenheimer and Wells Fargo, citing risks from AI disruptions and deteriorating sentiment in the software sector.
Bearish technical indicators and the stock trading below key resistance levels.
Lack of recent news or significant trading trends from hedge funds or insiders.

Financial Performance

In Q3 2025, Tyler Technologies reported strong financial growth: revenue increased by 9.67% YoY to $595.88M, net income rose by 11.19% YoY to $84.39M, EPS grew by 10.92% YoY to $1.93, and gross margin improved by 8.99% to 44.85%.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment is mixed. Recent ratings include a Buy from Needham with a $750 price target and a Buy from Stifel with a $550 price target, highlighting Tyler's strong position in the public sector. However, Oppenheimer and Wells Fargo lowered their price targets to $510 and $470, respectively, citing risks from AI disruptions and deteriorating sentiment in the software sector.

14 Analyst Rating

Wall Street analysts forecast TYL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TYL is 629.08 USD with a low forecast of 510 USD and a high forecast of 750 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

11 Buy

3 Hold

0 Sell

Strong Buy

Current: 419.120

Low

510

Averages

629.08

High

750

Current: 419.120

Low

510

Averages

629.08

High

750

Oppenheimer

Ken Wong

Outperform

NULL

downgrade

$600 -> $510

AI Analysis

2026-01-23

Reason

Oppenheimer

Ken Wong

Price Target

$600 -> $510

AI Analysis

2026-01-23

downgrade

Outperform

NULL

Reason

Oppenheimer analyst Ken Wong lowered the firm's price target on Tyler Technologies to $510 from $600 and keeps an Outperform rating on the shares. The firm reduced targets in the mid-cap software-as-a-service space as part of a Q4 preview. "Sentiment across software continues to deteriorate with the perceived risks from AI disruptions intensifying," the analyst tells investors in a research note. Opco expects company fundamentals consistent with the Q3 earnings season.

Wells Fargo

Michael Turrin

Equal Weight

downgrade

$525 -> $470

2026-01-08

Reason

Wells Fargo

Michael Turrin

Price Target

$525 -> $470

2026-01-08

downgrade

Equal Weight

Reason

Wells Fargo analyst Michael Turrin lowered the firm's price target on Tyler Technologies to $470 from $525 and keeps an Equal Weight rating on the shares. The firm believes that AI is still "the name of the 2026 game." Wells sees three key ways to play, namely infrastructure, incumbents, and innovation. While adoption will likely be uneven, secular trend will ultimately drive 2026 performance, it adds.

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TYL Should I Buy

TYL Should I Buy

Should You Buy Tyler Technologies Inc (TYL) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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