TYL - Confidence in Fundamentals; Shifting NT Model but '26 Ests. Mostly Unchanged Aside from Higher EPS; Reit. Buy

Research evidence excerpt

TYL - Confidence in Fundamentals; Shifting NT Model but '26 Ests. Mostly Unchanged Aside from Higher EPS; Reit. Buy

Truist Securities

Equity Research Report July 1, 2026

TMT: Application Software and Tyler Technologies, Inc. (TYL)

Agentic AI

TYL - Confidence in Fundamentals; Shifting NT Model but '26 Ests.

Terry Tillman Mostly Unchanged Aside from Higher EPS; Reit. Buy

404-926-5362

Terry.Tillman@truist.com

Following Investor Day, marketing with management and a catch-up with the company,

Connor Passarella we are highlighting our confidence in Tyler's ability to execute against its strategic targets

212-326-6153 while also shifting some of our 2026 estimates, including 2Q, to better model quarterly

Connor.Passarella@truist.com cadence of revenue and cash flow, specifically around tougher comps in the transactions

biz and seasonality. While 2Q ests. move slightly lower across the board, our full year ests.

Giancarlo Valle are relatively unchanged aside from 2026 non-GAAP EPS which guidance was raised by

212-537-9006 Tyler at Investor Day to account for the company's buyback activity and net interest income

Giancarlo.Valle@Research.truist.com projections. Reit. Buy & $440 PT.

Luc Radice Highlighting Our Busy Month with Tyler. Over the past month, we attended Tyler's 212-537-9032

Luc.Radice@truist.com Investor Day in Frisco, TX (link here), had management on the road in NYC (link here), and

caught-up with the company intra-quarter. To reiterate, we came away from these events

incrementally confident in Tyler's long term vision and growth/profit compounding profile as

our most important takeaways/highlights included 1) increased 2030 targets for ARR, FCF,

Stock Rating BUY and SaaS rev growth (20%+ CAGR), 2) the transaction business (1/3 of total rev) represents