Fair Isaac (NYSE:FICO) Releases Quarterly Earnings Results, Beats Estimates By $0.41 EPS

Key Points

• Fair Isaac beat quarterly estimates: EPS was $11.10, topping consensus by $0.41, while revenue of $657.05 million exceeded expectations and rose 27.4% year over year.
• Software platform growth was strong in fiscal 2026, with platform ARR up 72% to $453 million and record ACV bookings of $140 million; non-platform ARR fell 18% amid product migrations and retirements.
• FICO withheld fiscal 2027 guidance amid uncertainty over mortgage pricing changes, interest rates, and loan volumes. The stock fell, and analysts cut several price targets despite the earnings beat.

Fair Isaac (NYSE:FICO - Get Free Report) posted its quarterly earnings data on Wednesday. The technology company reported $11.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.69 by $0.41, FiscalAI reports. The firm had revenue of $657.05 million for the quarter, compared to the consensus estimate of $651.73 million. Fair Isaac had a net margin of 34.05% and a negative return on equity of 32.51%. The company's revenue for the quarter was up 27.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $7.74 earnings per share.

Here are the key takeaways from Fair Isaac's conference call:

• FICO reported record fiscal 2026 results: revenue rose 27% to $2.535 billion, non-GAAP EPS increased 44% to $42.99, and free cash flow grew 40% to $1.034 billion. Fourth-quarter GAAP earnings included $44 million in pre-tax charges, including a proposed antitrust settlement accrual and restructuring costs.
• Software platform momentum remained strong: platform ARR grew 72% to $453 million, while trailing 12-month ACV bookings increased 36% to a record $140 million. However, non-platform ARR declined 18%, reflecting migrations and end-of-life products.
• FICO withheld fiscal 2027 guidance, citing unsettled custom mortgage-pricing agreements, elevated rates, and uncertain origination volumes. Management also declined to disclose pricing details, expected adoption by program, or its mortgage-volume assumptions.
• Scores revenue rose 33% in Q4, largely on higher mortgage score prices, while mortgage origination volumes fell by a high-single-digit percentage amid elevated interest rates. FICO said it paused share repurchases in Q4 to pay down debt, but expects to resume buybacks after reducing leverage.

Fair Isaac Stock Performance

NYSE FICO traded down $21.86 on Wednesday, reaching $702.52. 1,189,420 shares of the company's stock traded hands, compared to its average volume of 946,451. The firm has a market cap of $15.17 billion, a price-to-earnings ratio of 20.29, a P/E/G ratio of 0.88 and a beta of 1.36. The stock has a 50 day moving average price of $845.21 and a 200-day moving average price of $1,115.37. Fair Isaac has a fifty-two week low of $586.05 and a fifty-two week high of $1,858.91.

Analysts Set New Price Targets

FICO has been the subject of a number of research analyst reports. UBS Group decreased their price target on shares of Fair Isaac from $1,100.00 to $942.00 and set a "neutral" rating for the company in a report on Monday, October 26th. Royal Bank Of Canada dropped their price objective on shares of Fair Isaac from $1,525.00 to $1,045.00 and set an "outperform" rating on the stock in a report on Friday, October 16th. BMO Capital Markets cut their target price on Fair Isaac from $1,150.00 to $897.00 and set an "outperform" rating on the stock in a research report on Monday, October 26th. Citigroup reissued a "neutral" rating on shares of Fair Isaac in a research report on Tuesday, October 27th. Finally, Credit Suisse Group set a $1,150.00 target price on Fair Isaac in a research note on Wednesday, September 30th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $967.12.

Key Stories Impacting Fair Isaac

Here are the key news stories impacting Fair Isaac this week:

• Positive Sentiment: Fiscal Q4 earnings were $11.10 per share, above consensus estimates, while revenue of $657.05 million also topped expectations and rose 27.4% year over year. Fair Isaac Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Several lenders joined FICO’s Preferred Program, and a regional lender upgraded to Auto Score 10—signs of continued adoption of its scoring products. Lenders Join FICO Preferred Program
• Negative Sentiment: FICO declined to issue guidance as it moves mortgage-originations pricing from a flat fee to customer-specific pricing. The lack of an outlook and uncertainty about how the new structure will affect revenue likely tempered the positive earnings news. FICO Declines to Share Guidance Amid Price Structure Change
• Negative Sentiment: Jefferies sharply lowered its price target to $925 from $1,675, adding to concerns about the stock’s outlook. Other coverage has also highlighted pricing and competitive pressure. Jefferies Adjusts Price Target

About Fair Isaac

Fair Isaac Corporation, commonly known as FICO, develops analytics and decision-management software used by businesses to assess risk, detect fraud and make customer-related decisions. The company is best known for the FICO Score, a credit-risk scoring system used by lenders and other financial institutions to evaluate consumer creditworthiness.

FICO's offerings include credit scoring solutions, decisioning platforms, fraud-detection tools, customer management software and predictive analytics.

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