Fair Isaac (NYSE:FICO) Posts Quarterly Earnings Results, Beats Expectations By $1.53 EPS

Fair Isaac (NYSE:FICO) posted its quarterly earnings data on Tuesday. The technology company reported $12.50 EPS for the quarter, topping the consensus estimate of $10.97 by $1.53, FiscalAI reports. Fair Isaac had a net margin of 31.89% and a negative return on equity of 40.98%. The business had revenue of $691.68 million during the quarter, compared to the consensus estimate of $621.81 million. During the same period in the previous year, the firm posted $7.81 earnings per share. The business’s revenue for the quarter was up 38.7% compared to the same quarter last year. 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 3.8%

FICO traded down $39.26 on Thursday, reaching $1,004.31. The stock had a trading volume of 407,574 shares, compared to its average volume of 359,623. Fair Isaac has a 12-month low of $870.01 and a 12-month high of $2,217.60. The business’s 50-day moving average price is $1,151.17 and its two-hundred day moving average price is $1,467.16. The company has a market cap of $23.82 billion, a P/E ratio of 37.14, a price-to-earnings-growth ratio of 0.97 and a beta of 1.38.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on FICO shares. Bank of America initiated coverage on shares of Fair Isaac in a research note on Tuesday, February 17th. They set a “buy” rating and a $1,900.00 price objective for the company. Jefferies Financial Group boosted their target price on shares of Fair Isaac from $2,100.00 to $2,200.00 and gave the company a “buy” rating in a research report on Friday, January 16th. Wells Fargo & Company decreased their target price on shares of Fair Isaac from $1,650.00 to $1,400.00 and set an “overweight” rating for the company in a research report on Thursday. JPMorgan Chase & Co. decreased their target price on shares of Fair Isaac from $1,825.00 to $1,325.00 and set a “neutral” rating for the company in a research report on Tuesday, March 24th. Finally, UBS Group decreased their target price on shares of Fair Isaac from $1,200.00 to $1,150.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. Ten equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $1,697.93.

Fair Isaac declared that its board has authorized a share repurchase plan on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the technology company to buy up to 5.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other Fair Isaac news, 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 owned 11,204 shares of the company’s stock, valued at approximately $15,237,440. The trade was a 3.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Eva Manolis sold 520 shares of the business’s stock in a transaction dated 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 sale, the director directly owned 344 shares of the company’s stock, valued at $422,304.72. This represents a 60.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.02% of the stock is currently owned by insiders.

Institutional Trading of Fair Isaac

Institutional investors and hedge funds have recently modified their holdings of the stock. Rakuten Securities Inc. increased its stake in shares of Fair Isaac by 100.0% during the second quarter. Rakuten Securities Inc. now owns 24 shares of the technology company’s stock worth $44,000 after purchasing an additional 12 shares in the last quarter. JPL Wealth Management LLC purchased a new stake in shares of Fair Isaac during the third quarter worth about $46,000. DV Equities LLC purchased a new stake in shares of Fair Isaac during the fourth quarter worth about $56,000. Johnson Financial Group Inc. increased its stake in shares of Fair Isaac by 122.2% during the third quarter. Johnson Financial Group Inc. now owns 60 shares of the technology company’s stock worth $90,000 after purchasing an additional 33 shares in the last quarter. Finally, Quarry LP increased its stake in shares of Fair Isaac by 454.5% during the fourth quarter. Quarry LP now owns 61 shares of the technology company’s stock worth $103,000 after purchasing an additional 50 shares in the last quarter. Hedge funds and other institutional investors own 85.75% of the company’s stock.

Trending Headlines about Fair Isaac

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

• Positive Sentiment: Q2 results beat and Scores segment outperformance — Revenue rose ~39% YoY and Scores revenue surged (large contributor to the quarter), with non‑GAAP EPS and cash generation stronger than last year; this drove initial upside after the print. Zacks: Q2 Earnings Beat
• Positive Sentiment: Raised FY26 outlook — management updated FY guidance (non‑GAAP EPS ~40.45 and revenue guidance in the ~2.45B–2.5B area), signalling confidence in continued growth and supporting higher earnings estimates. QuiverQuant: Guidance Lift
• Neutral Sentiment: Product/pricing update for FICO Score 10T — company signalled a pricing shift (reported as $0.99 plus a funding fee), which could materially change per‑unit economics; investors are parsing the revenue impact and timing. Seeking Alpha: Pricing Shift
• Neutral Sentiment: Investor access / presentations — CEO and CFO will present at Barclays’ investor conference (May 5), giving another venue for management to clarify growth cadence and margin outlook. BusinessWire: Investor Conference
• Neutral Sentiment: Analyst landscape is mixed — several buy/outperform ratings remain, price targets vary widely (median high), and Needham trimmed its target while keeping a Buy — that divergence contributes to short‑term trading swings. Benzinga: Needham Price Target Change
• Negative Sentiment: Valuation scrutiny and multiple compression — some analysts and commentary are reassessing FICO’s valuation after a sharp prior run‑up; the stock is facing profit‑taking as investors weigh growth versus current multiples. Yahoo Finance: Valuation Reassessment
• Negative Sentiment: Competitive/market concerns — coverage noted investor worry about VantageScore competition and pricing pressure; any perceived risk to scoring pricing or share could pressure sentiment. Barron’s: VantageScore Concerns
• Negative Sentiment: Insider selling flagged — recent disclosures show multiple insider sales, which some investors interpret as a negative signal and can amplify short‑term selling pressure. QuiverQuant: Insider 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.