Tyler Technologies Stock vs Competition: Who Wins?
Tyler Technologies’ stock significantly underperformed over the past year. How does it measure up against peers rapidly scaling in public sector digital transformation and AI integration? A closer look reveals strong free cash flow (26.1% LTM FCF margin) and solid operating margins (15.4% LTM). However, its 10.6% LTM revenue growth lags some GovTech specialists, and its 39.3x PE suggests an elevated valuation. This indicates limited near-term upside if competition in government cloud and AI solutions accelerates.
- TYL’s 15.4% operating margin is solid for public sector software, yet trails MSFT (46.7%) due to MSFT’s high-margin cloud/AI dominance.
- TYL’s 10.6% revenue growth, fueled by public sector cloud/SaaS migration, outpaces MSI but lags peers leveraging AI and broad cloud expansion.
- TYL stock is down 53.0% (past year), underperforming peers; it trades at a high 39.3 PE, reflecting investor growth expectations despite declines.
Here’s how Tyler Technologies stacks up across size, valuation, and profitability versus key peers.
| TYL | MSI | AXON | ORCL | MSFT | PLTR | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 12.4 | 75.5 | 34.2 | 448.2 | 2,986.1 | 307.0 |
| Revenue ($ Bil) | 2.3 | 11.3 | 2.6 | 61.0 | 305.5 | 3.9 |
| PE Ratio | 39.3 | 35.7 | 132.9 | 29.1 | 25.0 | 280.2 |
| LTM Revenue Growth | 10.6% | 6.2% | 32.0% | 11.1% | 16.7% | 47.2% |
| LTM Operating Margin | 15.4% | 25.0% | -1.1% | 31.9% | 46.7% | 21.8% |
| LTM FCF Margin | 26.1% | 21.3% | 5.7% | -21.6% | 25.3% | 46.0% |
| 12M Market Return | -53.0% | -1.8% | -34.5% | -8.2% | -1.0% | 10.0% |
For more details on Tyler Technologies, read Buy or Sell TYL Stock. Below we compare TYL’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| TYL | 10.6% | – | 9.5% | 5.5% | 16.2% |
| MSI | 6.2% | – | 8.4% | 9.5% | 11.5% |
| AXON | 32.0% | – | 33.4% | 31.5% | 37.5% |
| ORCL | 11.1% | 8.4% | 6.0% | 17.7% | |
| MSFT | 16.7% | 14.9% | 15.7% | 6.9% | |
| PLTR | 47.2% | – | 28.8% | 16.7% | 23.6% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| TYL | 15.4% | – | 14.0% | 11.2% | 11.6% |
| MSI | 25.0% | – | 24.9% | 23.6% | 19.1% |
| AXON | -1.1% | – | 2.8% | 10.0% | 7.8% |
| ORCL | 31.9% | 31.5% | 30.3% | 27.6% | |
| MSFT | 46.7% | 45.6% | 44.6% | 41.8% | |
| PLTR | 21.8% | – | 10.8% | 5.4% | -8.5% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| TYL | 39.3 | – | 73.5 | 146.1 | 105.8 |
| MSI | 35.7 | – | 40.5 | 45.2 | 38.5 |
| AXON | 132.9 | – | 114.1 | 250.9 | 125.0 |
| ORCL | 29.1 | 43.7 | 43.7 | 33.4 | |
| MSFT | 25.0 | 35.3 | 35.5 | 38.7 | |
| PLTR | 280.2 | – | 865.4 | 774.0 | -94.8 |
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