Tyler Technologies (TYL) raised its 2030 SaaS compound annual growth target to 20%, up from a previous high-teens goal set at its June Investor Day, and outlined a roadmap that pairs continued cloud migration with a wave of new AI products across its government-focused platform.
Speaking at the Piper Sandler 5th Annual Growth Frontiers Conference on Tuesday, September 15, 2026, Executive Vice President and Chief Financial Officer Brian Miller said the company has posted 22 straight quarters of SaaS growth exceeding 20%. Roughly one-third of current revenue comes from transaction-based businesses, which carry a 2030 CAGR target of 10% to 12%.
Operating margin is expected to expand from the mid-20s to the mid-30s by 2030. The company reported a gross profit margin of 47%, return on equity of 10%, and generated $714 million in free cash flow over the trailing twelve months.
Miller described a large remaining addressable market within Tyler's existing client base. The company maintains approximately 50,000 installations across roughly 16,000 government entities, most of whom use only two to three products. Migration from maintenance contracts to SaaS lifts revenue by about 1.7 times, and gross customer retention is running at 98% to 99%.
Cloud conversion remains a multi-year endeavor for complex systems. Of 17 statewide court systems, only two were deployed in the cloud from inception and just one of the remaining 15 on-premises systems has migrated so far. Migration timelines for larger accounts are projected over the next three to four years. Los Angeles County completed its licensing and permitting cloud switch last year, while New York City and Cook County in Chicago continue to operate property tax and court systems on-premises.
AI is emerging as a incremental revenue driver. Mature AI products already generate more than $20 million annually, including Document Automation for court data entry and Priority Based Budgeting for spending analysis. Tyler plans to add roughly 25 agentic AI solutions by end of 2026. Pilot programs are targeted by year-end, with broader pilot activity expected by mid-2027 and meaningful revenue contribution anticipated in the second half of 2027. Early use cases include building permit review, police report writing, accounts payable automation, and court case data entry.
Fort Worth, Texas was cited as a customer viewing AI investment as a way to offset staffing constraints.
Tyler's acquisition portfolio has grown at approximately 24% compound annual rate over the past five years, roughly double the pace of its core business. The company completed a $1 billion share repurchase authorization in February 2026 and now operates under a new $1.5 billion buyback. Shares traded around $353 as of mid-September, against a 52-week high of $543.30.
