Needham & Company LLC Issues Pessimistic Forecast for Fair Isaac (NYSE:FICO) Stock Price

Key Points

• Needham & Company cut its price target on Fair Isaac from $1,975 to $1,650 but maintained a "buy" rating, implying roughly 63% upside from the prior close.
• FICO beat Q2 expectations with revenue of $691.7M (+38.7% YoY) and EPS of $12.50, announced a $1.5B share repurchase, and set FY26 EPS guidance at 40.450.
• Analyst sentiment is mixed — the average rating is "Moderate Buy" with a mean target of $1,719, but several firms have trimmed targets and notable insider selling raises some caution.

Fair Isaac (NYSE:FICO - Get Free Report) had its target price cut by investment analysts at Needham & Company LLC from $1,975.00 to $1,650.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. Needham & Company LLC's price objective points to a potential upside of 63.34% from the stock's previous close.

FICO has been the topic of a number of other reports. The Goldman Sachs Group lowered their price target on shares of Fair Isaac from $1,770.00 to $1,528.00 and set a "buy" rating on the stock in a report on Thursday, April 2nd. Bank of America assumed coverage on shares of Fair Isaac in a report on Tuesday, February 17th. They set a "buy" rating and a $1,900.00 target price on the stock. Jefferies Financial Group raised their price target on shares of Fair Isaac from $2,100.00 to $2,200.00 and gave the company a "buy" rating in a report on Friday, January 16th. Barclays reduced their price target on shares of Fair Isaac from $2,400.00 to $1,950.00 and set an "overweight" rating for the company in a research report on Friday, April 10th. Finally, UBS Group decreased their price target on shares of Fair Isaac from $1,200.00 to $1,150.00 and set a "neutral" rating on the stock in a report on Thursday, April 23rd. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $1,719.21.

Fair Isaac Trading Down 0.4%

Fair Isaac stock opened at $1,010.16 on Wednesday. The firm has a market capitalization of $23.96 billion, a price-to-earnings ratio of 37.39, a P/E/G ratio of 0.97 and a beta of 1.38. The firm has a 50 day simple moving average of $1,157.65 and a 200 day simple 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.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The technology company reported $12.50 earnings per share for the quarter, beating the consensus estimate of $10.97 by $1.53. Fair Isaac had a negative return on equity of 40.98% and a net margin of 31.89%.The company had revenue of $691.68 million during the quarter, compared to analysts' expectations of $621.81 million. During the same period in the previous year, the business earned $7.81 earnings per share. The firm's quarterly revenue was up 38.7% compared to the same quarter last year. Fair Isaac has set its FY 2026 guidance at 40.450-40.450 EPS. On average, equities research analysts forecast that Fair Isaac will post 36.45 EPS for the current year.

Fair Isaac announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the technology company to repurchase up to 5.2% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Eva Manolis sold 520 shares of Fair Isaac stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $1,227.63, for a total transaction of $638,367.60. Following the completion of the sale, the director directly owned 344 shares of the company's stock, valued at approximately $422,304.72. The trade was a 60.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Joanna Rees sold 358 shares of the 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 in the company, valued at approximately $15,237,440. This represents a 3.10% decrease in their position. The SEC filing for this sale provides additional information. 3.02% of the stock is owned by insiders.

Hedge Funds Weigh In On Fair Isaac

A number of hedge funds and other institutional investors have recently modified their holdings of FICO. Brighton Jones LLC boosted its stake in Fair Isaac by 168.7% in the fourth quarter. Brighton Jones LLC now owns 481 shares of the technology company's stock worth $958,000 after buying an additional 302 shares in the last quarter. Great Lakes Advisors LLC boosted its stake in shares of Fair Isaac by 5.7% in the 1st quarter. Great Lakes Advisors LLC now owns 112 shares of the technology company's stock valued at $207,000 after purchasing an additional 6 shares in the last quarter. Woodline Partners LP grew its holdings in shares of Fair Isaac by 46.1% during the 1st quarter. Woodline Partners LP now owns 2,138 shares of the technology company's stock valued at $3,943,000 after purchasing an additional 675 shares during the last quarter. Treasurer of the State of North Carolina raised its position in Fair Isaac by 18.0% in the 2nd quarter. Treasurer of the State of North Carolina now owns 14,037 shares of the technology company's stock worth $25,659,000 after purchasing an additional 2,146 shares during the period. Finally, Alliancebernstein L.P. boosted its position in Fair Isaac by 16.1% during the second quarter. Alliancebernstein L.P. now owns 211,947 shares of the technology company's stock valued at $387,431,000 after buying an additional 29,408 shares during the period. 85.75% of the stock is currently owned by hedge funds and other institutional investors.

Fair Isaac News Summary

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

• Positive Sentiment: Q2 results materially beat on revenue and EPS: revenue $691.7M (+38.7% YoY) and EPS $12.50, topping consensus and showing strong margin and cash‑flow improvement — a core reason the stock rallied after the print. Earnings Press
• Positive Sentiment: Market reaction and data flow: coverage and market notes highlighted robust operating cash flow, gross profit expansion and improving operating leverage, which supported an intraday share rise. Quiver Earnings Reaction
• Positive Sentiment: AI/service‑stock narrative: coverage from outlets citing Goldman Sachs/Barron's lists FICO among AI/services winners, which could sustain multiple expansion as investors price AI tailwinds into recurring analytics revenue. Barron's: AI Winners
• Neutral Sentiment: FY26 guidance largely in line: revenue guidance around $2.5B matches Street expectations, but EPS was set at 40.450 (a round single point) — essentially flat with consensus, leaving limited surprise upside from guidance alone. Company Guidance
• Negative Sentiment: Consumer credit stress in FICO's UK data: FICO's UK credit‑card report flags lower payment rates and higher missed‑payment balances versus a year ago, noting rising energy costs could worsen affordability — a potential headwind for lenders and analytics demand if delinquency trends accelerate. UK Credit Card Report
• Negative Sentiment: Insider selling and mixed institutional flows: filings and market trackers show notable insider sales and large portfolio adjustments by institutions — a potential caution signal for sentiment, even as some long‑term holders added shares. Insider & Institutional Activity

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.

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