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Tyler to Report Q3 Earnings: What's in the Cards for the Stock?

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Key Takeaways

  • {\"0\":\"TYL\'s Q3 revenues are projected to be $597.76M, up 9.5% year over year.\",\"1\":\"Subscription revenues are estimated at $402.8M, a 16% rise as public sector cloud adoption accelerates.\",\"2\":\"SaaS shift likely lifted margins, though license and maintenance revenues are expected to decline.\"}

Tyler Technologies, Inc. (TYL - Free Report) is scheduled to report third-quarter 2025 results on Oct. 29, after market close.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $597.76 million, implying a 9.5% increase from the year-ago quarter.

The consensus mark for earnings is pegged at $2.88 per share, indicating an increase of 9.5% from the year-ago quarter. The bottom-line estimate has remained unchanged over the past 60 days.

TYL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.4%.

Factors to Note Ahead of Tyler Technologies’ Q3 Results

Tyler Technologies’ third-quarter revenues are likely to have benefited from sustained demand for its subscription-based software-as-a-service (SaaS) offerings, as the public sector continues to modernize its technology infrastructure and migrate to scalable cloud platforms. Our estimate for the company’s third-quarter Subscription segment revenues is pegged at $402.8 million, indicating a year-over-year increase of 16%.

Nevertheless, the ongoing transition to SaaS is likely to have pressured TYL’s Software Licenses and Royalties segment revenues. Our estimate for the segment’s third-quarter revenues is pegged at $5.4 million, indicating a 12.1% year-over-year decline.

For Professional Services’ third-quarter revenues, our estimate is pinned at $65.7 million, indicating a year-over-year increase of 2%. Our estimate of $107.4 million for the Maintenance segment’s third-quarter revenues implies a year-over-year decrease of 7.1%. 

Overall, our estimate for the company’s total Subscriptions, Professional Services, Licenses and Royalties segment, and Maintenance revenues, which include all four abovementioned segments, is pegged at $575.9 million. The figure indicates a year-over-year increase of 9.2%.

While broader macro and funding uncertainties might have continued to cause some delays in procurement decisions, Tyler’s diversified client base and resilient public sector demand are likely to have supported steady sales activity in the quarter, aiding the company’s top line in the quarter under review.

The ongoing shift toward a growing mix of SaaS and transaction-based revenues is expected to have supported margin expansion in the to-be-reported quarter.

Earnings Whispers for Tyler Technologies

Our proven model does not conclusively predict an earnings beat for Tyler Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Currently, TYL has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Meta Platforms (META - Free Report) has an Earnings ESP of +3.37% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Meta Platforms is slated to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for META’s third-quarter 2025 earnings is pegged at $6.60 per share, up by 2 cents over the past seven days, indicating a rise of 9.5% from the year-ago quarter’s reported figure.

Reddit Inc. (RDDT - Free Report) has an Earnings ESP of +20.17% and sports a Zacks Rank #1 at present.

It is set to report third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for RDDT’s third-quarter earnings is pegged at 52 cents per share, unchanged over the past 60 days, indicating an increase of 225% from the year-ago quarter’s reported figure. 

NXP Semiconductors (NXPI - Free Report) has an Earnings ESP of +1.11% and carries a Zacks Rank #2 at present.

It is set to report third-quarter 2025 results on Oct. 27. The Zacks Consensus Estimate for NXPI’s third-quarter earnings is pegged at $3.11 per share, up by a cent over the past 30 days, indicating a decline of 9.9% from the year-ago quarter’s reported figure.

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