Texas-based Tyler Technologies, Inc. (TYL) is a major force in modernizing government operations through its integrated software and technology services. With more than 45,000 installations across 13,000 locations, including every U.S. state and several international regions, Tyler helps public sector agencies connect systems, share data, and make more informed decisions. 

Valued at nearly $24.4 billion by market cap, shares of this technology company have returned roughly 15.3% over the past year, outshining the broader S&P 500 Index ($SPX), which has posted gains of around 10.2% during the same stretch. On a YTD basis, the stock is down 1.8%, almost mirroring the broader market’s 1.3% drop so far this year. 

Zooming in further, the stock appears to have also outpaced the S&P 500 Technology Sector SPDR’s (XLK) 6.3% gain over the past year and a 2.5% decline on a YTD basis. 

Tyler Technologies has been riding high on its strategic focus on cloud solutions and AI integration, with strong financials driving outperformance relative to the broader market. However, despite beating expectations in its fiscal 2025 Q1 report with an adjusted EPS of $2.78 and revenue of $565.2 million on April 23, the stock took a hit, dropping over 6% the next day. The decline followed a few analyst downgrades that overshadowed the upbeat results, rattling investor confidence and triggering a sharp pullback.

For the current fiscal year, ending in December, analysts expect TYL’s EPS to grow 12.8% to $8.55. The company’s earnings surprise history is also impressive. It beat the consensus estimate in each of the last four quarters. 

Among the 17 analysts covering TYL stock, the consensus view is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” and four “Hold.” This configuration has remained steady over the past three months. 

Earlier this month, analysts at Needham reaffirmed their “Buy” rating on Tyler Technologies, setting a bullish price target of $750, implying a potential upside of 32.5% from current levels. The firm pointed to Tyler’s strong market positioning and projected a wave of major contract wins in the second half of 2025, signaling confidence in the company’s growth trajectory and long-term value.

TYL’s mean price target of $674.75 represents a premium of 19.2% from the current market prices. Meanwhile, the Street-high target of $775 suggests an even greater leap of 37% from current price levels.