Fair Isaac (NYSE:FICO) Shares Gap Down – Here’s Why

Fair Isaac Corporation (NYSE:FICO) shares gapped down prior to trading on Thursday . The stock had previously closed at $1,373.08, but opened at $1,150.00. Fair Isaac shares last traded at $1,177.7110, with a volume of 133,764 shares.

More Fair Isaac News

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

• Positive Sentiment: FICO reported fiscal third-quarter adjusted EPS of $12.18, above the $11.76 analyst consensus, while revenue increased 25.7% year over year to $674.2 million. Operating profit, net income and operating cash flow also posted substantial gains, highlighting continued profitability and operating leverage. Fair Isaac Raises Guidance As FICO Score Business Drives Growth
• Positive Sentiment: The company raised fiscal 2026 adjusted EPS guidance to approximately $42.43, slightly above the $42.06 consensus estimate. Analysts also pointed to strength in the core FICO Score business, margin expansion and growing platform annual recurring revenue. Wolfe Research maintained a Buy rating with a $1,450 price target, while Needham reaffirmed its Buy rating and set a $1,650 target. Analyst Maintains Buy on FICO
• Neutral Sentiment: Fiscal 2026 revenue guidance was maintained at roughly $2.5 billion, in line with expectations. The outlook suggests management remains confident in its longer-term growth strategy, but did not provide a significant revenue catalyst for investors.
• Negative Sentiment: Quarterly revenue of $674.2 million fell short of analyst estimates ranging from approximately $679 million to $692 million. The shortfall, combined with warnings about near-term mortgage headwinds, overshadowed the earnings beat and raised concerns about the pace of growth in lending-related businesses. Fair Isaac Misses Revenue Estimates
• Negative Sentiment: The market reaction reflects FICO’s demanding valuation: the stock remains well above typical technology-sector multiples, making it particularly sensitive to revenue misses or signs of slowing mortgage activity.

Analyst Ratings Changes

Several research firms have recently issued reports on FICO. Royal Bank Of Canada reiterated an “outperform” rating on shares of Fair Isaac in a report on Thursday. Raymond James Financial restated an “outperform” rating and issued a $1,750.00 price target on shares of Fair Isaac in a research note on Wednesday, April 29th. Mizuho began coverage on Fair Isaac in a research report on Thursday, April 16th. They set an “outperform” rating and a $1,416.00 price objective for the company. Wells Fargo & Company lifted their price objective on Fair Isaac from $1,400.00 to $1,450.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Needham & Company LLC reissued a “buy” rating and issued a $1,650.00 target price on shares of Fair Isaac in a report on Thursday. Twelve research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $1,631.50.

Fair Isaac Trading Down 16.3%

The firm has a market capitalization of $26.65 billion, a P/E ratio of 36.44, a price-to-earnings-growth ratio of 1.19 and a beta of 1.29. The business’s 50 day simple moving average is $1,220.61 and its two-hundred day simple moving average is $1,237.75.

Fair Isaac (NYSE:FICO) last issued its earnings results on Wednesday, July 29th. The technology company reported $12.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $11.76 by $0.42. Fair Isaac had a net margin of 33.67% and a negative return on equity of 41.04%. The firm had revenue of $674.19 million for the quarter, compared to the consensus estimate of $679.17 million. During the same quarter in the prior year, the firm posted $8.57 earnings per share. The business’s revenue was up 25.7% on a year-over-year basis. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. Analysts predict that Fair Isaac Corporation will post 38 EPS for the current fiscal year.

Hedge Funds Weigh In On Fair Isaac

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bayban purchased a new stake in Fair Isaac during the 4th quarter valued at $25,000. Physician Wealth Advisors Inc. increased its holdings in shares of Fair Isaac by 166.7% in the 4th quarter. Physician Wealth Advisors Inc. now owns 16 shares of the technology company’s stock worth $27,000 after purchasing an additional 10 shares in the last quarter. Torren Management LLC purchased a new position in shares of Fair Isaac in the fourth quarter worth $30,000. Rakuten Securities Inc. raised its stake in shares of Fair Isaac by 100.0% in 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 during the last quarter. Finally, Elyxium Wealth LLC bought a new position in shares of Fair Isaac during the fourth quarter valued at $42,000. 85.75% of the stock is owned by institutional investors.

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.