NZS Capital added Tyler Technologies to its Growth Equity Strategy portfolio in the first quarter of 2026, citing the government-software provider's resilience to AI-driven disruption. The firm described Tyler's products as mission-critical systems of record whose value far exceeds their code, yet they represent only a fraction of a percent of a customer's operating budget. NZS Capital argued that municipal customers' risk aversion makes it unlikely they would replace Tyler's software with an AI-native startup, and the firm believes AI agents are more likely to interact with existing platforms than displace them. Tyler Technologies shares have fallen more than 40% over the past year, closing at $276.88 on June 18, 2026, with a market capitalization of $11.39 billion. The strategy itself returned negative 8.75% gross and negative 8.91% net in the quarter, underperforming the Morningstar Global Target Market Exposure Index's negative 3.30%.
Tyler Technologies IncNZS Capital added Tyler Technologies as an AI-resilient play, arguing its mission-critical software is unlikely to be disrupted by AI startups.