Tyler Technologies forecasts downbeat annual revenue on slower software spending

Feb 11 (Reuters) - Tyler ‌Technologies ​forecast ​full-year 2026 revenue below Wall Street expectations on Wednesday, as government ‌entities pare back budgets owing to ⁠economic uncertainty, sending the software developer's shares down ‌over 8% in extended ‌trading.

The company, heavily reliant on public sector, is exposed to budget cycles ​across U.S. state, county and municipal governments, with economic slowdown or funding ⁠shortfalls potentially pressuring bookings and organic growth.

There have been rising ​concerns about the pace of cloud migrations over the next two ​years, as governments take ‌longer to approve projects amid tighter budgets and extended procurement processes.

For ⁠2026, the company expects revenue of between $2.50 billion and $2.55 billion, below expectations of $2.56 billion, ⁠according to data compiled by LSEG.

It expects annual ​subscription revenue to grow between 12% and 15%, while analysts expect a growth of 15.4%.

For ‌the fourth quarter, Tyler reported revenue of $575.2 million, missing analysts' average ‌expectation of $591.1 million.

Adjusted earnings per share ⁠for the quarter ‌came in at $2.64, ​missing estimates of $2.72.

(Reporting by Arnav Mishra in Bengaluru; Editing by Vijay ‌Kishore)

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