Fair Isaac (NYSE:FICO) Posts Earnings Results

Key Points

• FICO delivered a strong quarter with revenue of about $692 million (up ~39% YoY) and an EPS beat, and it raised full‑year revenue guidance to $2.45 billion while setting FY‑2026 EPS guidance around $40.45.
• The Results were driven by the Scores business, which generated $475 million in revenue (up 60%)—led by mortgage originations that rose 127% and made up roughly 72% of B2B Scores revenue.
• Cash generation and shareholder returns are strong: Q2 free cash flow was $214 million, trailing‑4Q FCF was $867 million, the company repurchased a record $605 million this quarter and authorized a further $1.5 billion buyback, with total debt around $3.64 billion.

Fair Isaac (NYSE:FICO - Get Free Report) posted its quarterly earnings data on Tuesday. The technology company reported $12.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.97 by $1.53, FiscalAI reports. The business had revenue of $691.68 million for the quarter, compared to analysts' expectations of $621.81 million. Fair Isaac had a negative return on equity of 40.98% and a net margin of 31.89%.The business's revenue was up 38.7% on a year-over-year basis. During the same quarter last year, the firm earned $7.81 earnings per share. Fair Isaac updated its FY 2026 guidance to 40.450-40.450 EPS.

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

• FICO reported a very strong quarter—Q2 revenue of $692 million (up 39%), GAAP EPS of $11.14 (up 69%)—and raised full‑year guidance to $2.45 billion in revenue and higher EPS targets.
• The Scores segment drove the beat with $475 million in revenue (up 60%), led by mortgage originations revenue that rose 127% and accounted for ~72% of B2B Scores revenue.
• Platform momentum remains strong: Software ARR reached $789 million (+10% YoY) with Platform ARR at $349 million (up 49%) and Platform net retention of 136%, reflecting healthy bookings and “land‑and‑expand” demand.
• FICO lowered FICO Score 10T direct‑license pricing to $0.99 plus a $65 funding fee to spur adoption and expanded its early‑adopter program, but wide rollout still depends on FHFA/GSE sign‑off and reseller readiness.
• Cash generation and capital return are strong—Q2 free cash flow of $214 million, $867M trailing‑4Q FCF, and a record $605M share repurchase this quarter—while total debt is <$strong>$3.64 billion at a 5.5% average rate and interest expense is expected to trend modestly higher.

Fair Isaac Trading Down 0.4%

NYSE FICO opened at $1,010.16 on Wednesday. The company has a market cap of $23.96 billion, a price-to-earnings ratio of 37.39, a PEG ratio of 0.97 and a beta of 1.38. The company has a 50 day moving average of $1,157.65 and a 200-day moving average of $1,470.15. Fair Isaac has a 1-year low of $870.01 and a 1-year high of $2,217.60.

Insiders Place Their Bets

In other Fair Isaac news, Director Eva Manolis sold 520 shares of the firm's stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $1,227.63, for a total transaction of $638,367.60. Following the transaction, the director owned 344 shares in the company, valued at $422,304.72. This trade represents a 60.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joanna Rees sold 358 shares of Fair Isaac stock in a transaction on Friday, February 13th. The shares were sold at an average price of $1,360.00, for a total value of $486,880.00. Following the completion of the transaction, the director directly owned 11,204 shares of the company's stock, valued at $15,237,440. This represents a 3.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 3.02% of the stock is owned by company insiders.

Institutional Investors Weigh In On Fair Isaac

A number of large investors have recently bought and sold shares of the company. Compound Planning Inc. lifted its holdings in shares of Fair Isaac by 12.7% during the 4th quarter. Compound Planning Inc. now owns 276 shares of the technology company's stock worth $466,000 after acquiring an additional 31 shares during the period. Corient Private Wealth LLC raised its position in Fair Isaac by 6.5% during the fourth quarter. Corient Private Wealth LLC now owns 10,761 shares of the technology company's stock valued at $18,193,000 after purchasing an additional 654 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its position in Fair Isaac by 17.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 1,503 shares of the technology company's stock valued at $2,339,000 after purchasing an additional 224 shares in the last quarter. Vident Advisory LLC lifted its stake in Fair Isaac by 1.7% during the fourth quarter. Vident Advisory LLC now owns 4,503 shares of the technology company's stock worth $7,613,000 after purchasing an additional 76 shares during the last quarter. Finally, Beacon Pointe Advisors LLC boosted its holdings in shares of Fair Isaac by 2.8% in the 4th quarter. Beacon Pointe Advisors LLC now owns 1,058 shares of the technology company's stock valued at $1,789,000 after purchasing an additional 29 shares in the last quarter. 85.75% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

FICO has been the topic of a number of research analyst reports. Wells Fargo & Company reduced their target price on Fair Isaac from $2,300.00 to $1,650.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Barclays cut their price objective on Fair Isaac from $2,400.00 to $1,950.00 and set an "overweight" rating on the stock in a report on Friday, April 10th. Bank of America initiated coverage on Fair Isaac in a report on Tuesday, February 17th. They set a "buy" rating and a $1,900.00 target price for the company. The Goldman Sachs Group dropped their target price on shares of Fair Isaac from $1,770.00 to $1,528.00 and set a "buy" rating for the company in a research report on Thursday, April 2nd. Finally, JPMorgan Chase & Co. cut their price target on shares of Fair Isaac from $1,825.00 to $1,325.00 and set a "neutral" rating on the stock in a report on Tuesday, March 24th. Ten research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Fair Isaac currently has an average rating of "Moderate Buy" and an average target price of $1,742.43.

Fair Isaac announced that its board has authorized a share repurchase plan on Wednesday, February 25th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the technology company to purchase up to 5.2% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Trending Headlines about Fair Isaac

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

• Positive Sentiment: Quarterly results materially beat expectations — FICO reported robust Q2 revenue (~$691.7M, +38.7% YoY) and an EPS beat in several reports, showing strong top‑line growth and margin expansion that support upside to earnings. Article Title
• Positive Sentiment: Underlying profitability and cash flow were strong — reports highlight big YoY gains in gross and operating profit, higher operating cash flow and a cash position increase, which reduce execution risk and support shareholder returns. Article Title
• Neutral Sentiment: Mizuho initiated coverage with an Outperform and a $1,416 target — a vote of confidence that may support the stock over time but is not market‑moving by itself. Article Title
• Neutral Sentiment: Goldman/Barron's include FICO among AI services winners — positive thematic coverage that could lift sentiment if AI revenue contributions accelerate. Article Title
• Negative Sentiment: FY‑2026 EPS guidance (40.450) came in slightly below consensus (40.540) even as revenue guidance was roughly in line — the small EPS miss vs. street expectations likely trimmed some after‑hours enthusiasm.
• Negative Sentiment: ROE and capital structure signals and insider selling — the company reported an unusual negative return on equity metric and filings show notable insider share sales and institutional rebalancing; both can weigh on investor confidence. Article Title

About Fair Isaac

Fair Isaac Corporation, commonly known as FICO, is a data analytics and software company best known for its FICO Score, a widely used credit-scoring system that helps lenders assess consumer credit risk. Founded in 1956 by Bill Fair and Earl Isaac, the company has evolved from its origins in statistical credit scoring to a broader focus on predictive analytics, decision management and artificial intelligence-driven solutions for financial services and other industries. FICO is headquartered in San Jose, California, and operates globally, serving clients across North America, Latin America, Europe, the Middle East, Africa and the Asia-Pacific region.

FICO's product portfolio centers on analytics and decisioning technologies.