Here is Why Tyler Tech (TYL) is One of the Best Enterprise Software Stocks

Tyler Technologies Inc. (NYSE:TYL) is one of the best enterprise software stocks to buy right now. On April 29, Tyler Technologies reported record-breaking Q1 2026 results, with total revenues rising 8.6% to $613.5 million. This growth was driven by a 10.4% increase in recurring revenues, which now account for ~88% of the company’s total top line. Notably, SaaS revenues surged 23.5% to $222.4 million, marking the 21st consecutive quarter of growth exceeding 20% in this segment.

Profitability and cash flow showed significant strength, as adjusted EBITDA reached $177.3 million and non-GAAP diluted EPS grew to $3.09. Free cash flow more than doubled compared to the prior-year period, hitting $102.8 million. The company utilized its strong liquidity to manage capital effectively, repaying $600 million in maturing convertible debt and executing $250 million in share repurchases during the quarter.

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Strategically, Tyler Technologies Inc. (NYSE:TYL) expanded its Justice portfolio through the $223 million acquisition of For The Record in April, adding AI-powered transcription and speech-to-text capabilities. Following these results, the company provided full-year 2026 guidance, projecting total revenues between $2.535 billion and $2.575 billion. Management expressed confidence in its trajectory toward 2030 goals, supported by healthy public sector demand and ongoing cloud efficiency gains.

Tyler Technologies Inc. (NYSE:TYL) provides software and technology management solutions and serves the public sector. The company operates through the Platform Technologies and Enterprise Software segments.

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