Tyler Technologies' stock plummeted 8.70% during intraday trading on Thursday, extending losses from the previous session.

The sharp decline was triggered by the company's fourth-quarter 2025 financial results that fell short of analyst expectations. Tyler Technologies reported adjusted earnings per share of $2.64, missing the consensus estimate of approximately $2.72, while quarterly revenue of $575.2 million also came in below the expected $591 million.

Further pressuring the stock was the company's downbeat guidance for full-year 2026, forecasting revenue between $2.50 billion and $2.55 billion, below Wall Street expectations. The company also expects slower subscription revenue growth of 12-15% compared to analyst expectations, reflecting concerns about government entities paring back software budgets due to economic uncertainty.