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Investing.com - Cantor Fitzgerald maintained its Neutral rating and $600 price target on Tyler Technologies (NYSE:TYL) following the company’s quarterly earnings report. According to InvestingPro data, the company currently trades at a P/E ratio of 81, significantly above market averages, suggesting premium pricing for its growth potential.
Tyler Technologies exceeded analyst expectations for both revenue and earnings per share, with subscription revenues growing 21% compared to Street estimates of 17.5%. The company also reported 15% growth in annual recurring revenue. This performance aligns with the company’s strong track record, maintaining a 14% revenue CAGR over the past five years.
The technology provider posted adjusted EBITDA of $169.1 million, surpassing consensus estimates of $164.5 million, while earnings per share reached $2.91 versus the expected $2.77.
Free cash flow came in at $88 million, representing a 14.8% margin and approximately $20 million above analyst estimates.
Management raised guidance for revenue, earnings per share, and free cash flow margin, which Cantor Fitzgerald noted "points to continued momentum in the public sector market." For deeper insights into Tyler Technologies’ financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Tyler Technologies has acquired Emergency Networking, a cloud-native software provider specializing in solutions for fire departments and emergency medical services. This acquisition is timely as it aligns with the upcoming transition to the National Emergency Response Information System by January 2026. In another development, Tyler Technologies announced that John S. Marr, Jr. will step down as board chair following the company’s 2026 annual meeting of shareholders. This decision was confirmed to be amicable and not due to any disagreements with the company.
Analyst opinions on Tyler Technologies have been mixed. DA Davidson reiterated a Neutral rating on the stock ahead of its second-quarter earnings report. Meanwhile, Oppenheimer maintained an Outperform rating, highlighting solid demand for Tyler’s services despite challenging year-over-year comparisons. JPMorgan also reiterated an Overweight rating, citing confidence in the company’s business model and growth prospects. Tyler Technologies is expected to release its second-quarter results soon, with a conference call scheduled to discuss the earnings.
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