Tyler Technologies Is Down by More Than 50% as Investors Flee SaaS Stocks, but Are Government Agencies Really Rushing to Adopt AI?

Tyler Technologies stock has fallen 51% from its February 2025 high amid investor concerns about AI disruption to software companies. However, the company's cloud migration strategy, targeting 85% client conversion by 2030, could drive significant revenue growth and margin improvement. With shares trading at 25x forward earnings—well below historical averages—the stock may offer value for patient investors, given government agencies' typically slow technology adoption cycles.