Fair Isaac (NYSE:FICO) Announces Quarterly Earnings Results

Fair Isaac (NYSE:FICO) announced its quarterly earnings data on Wednesday. The technology company reported $12.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $11.76 by $0.42, FiscalAI reports. Fair Isaac had a negative return on equity of 42.05% and a net margin of 34.05%.The firm had revenue of $674.19 million during the quarter, compared to the consensus estimate of $679.17 million. During the same quarter in the prior year, the company earned $8.57 EPS. The business’s revenue for the quarter was up 25.7% on a year-over-year basis. Fair Isaac updated its FY 2026 guidance to 42.430-42.430 EPS.

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

• FICO raised its fiscal 2026 guidance after a strong quarter, with Q3 revenue up 26% to $674 million, non-GAAP EPS up 42% to $12.18, and free cash flow reaching $370 million.
• The Scores segment grew 41%, led by a 49% increase in B2B revenue, while FICO Score 10T adoption reached 70 lenders representing roughly 55% of volume from the top 50 mortgage originators. UltraFICO also became generally available, targeting subprime and near-prime borrowers.
• FICO Platform momentum remained strong, with platform ARR up 62% to $413 million, platform net retention at 148%, and platform revenue surpassing non-platform revenue for the first time. The company expects further growth from expanded use cases, a next-generation platform launch, and its Accenture partnership.
• The mortgage Direct Licensing Program remains delayed pending certification from one GSE, postponing the launch of the performance-based pricing model despite reseller agreements covering about 60% of mortgage volume. Management also expects continued mortgage-market pressure from elevated rates and affordability challenges.
• FICO repurchased $1.96 billion of stock during the quarter but increased debt to $5.58 billion to fund the accelerated buyback; management plans to prioritize debt repayment in the near term before resuming additional repurchases.

Fair Isaac Trading Down 2.1%

Shares of NYSE FICO traded down $23.97 during mid-day trading on Friday, hitting $1,115.57. The company had a trading volume of 672,141 shares, compared to its average volume of 344,885. The stock’s 50-day moving average price is $1,218.85 and its 200-day moving average price is $1,234.05. The company has a market capitalization of $25.87 billion, a price-to-earnings ratio of 32.22, a P/E/G ratio of 1.22 and a beta of 1.29. Fair Isaac has a 1 year low of $870.01 and a 1 year high of $1,998.01.

Fair Isaac News Summary

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

• Positive Sentiment: FICO reported fiscal third-quarter EPS of $12.18, ahead of the $11.76 consensus, while revenue rose 25.7% year over year to $674.2 million. Strong demand for the FICO Scores business, margin expansion and operating leverage supported profitability. Fair Isaac Q3 Earnings Beat Estimates on Scores, Revenues Up Year over Year
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $42.43, slightly above the $42.06 analyst estimate, with full-year revenue guidance of approximately $2.5 billion. Needham reaffirmed its Buy rating with a $1,650 price target, while Wolfe Research maintained a Buy rating and a $1,450 target. Fair Isaac Raises Guidance As FICO Score Business Drives Growth
• Neutral Sentiment: Analysts remain constructive on FICO’s long-term platform growth and recurring revenue, but the wide range of price targets and elevated valuation leave the stock sensitive to changes in growth expectations. Analyst Maintains Buy on FICO
• Negative Sentiment: Revenue missed Wall Street expectations—approximately $674 million versus estimates ranging from $679 million to $692 million. Investors were particularly concerned about softer software growth, near-term mortgage headwinds and guidance viewed as insufficient to offset those risks. The result triggered one of FICO’s steepest single-day declines in years. FICO Stock Drops the Most in Six Years

Institutional Investors Weigh In On Fair Isaac

Several large investors have recently added to or reduced their stakes in FICO. Primecap Management Co. CA lifted its holdings in shares of Fair Isaac by 34.7% in the 4th quarter. Primecap Management Co. CA now owns 243,374 shares of the technology company’s stock worth $411,453,000 after acquiring an additional 62,724 shares during the last quarter. Janus Henderson Group PLC grew its stake in shares of Fair Isaac by 139.5% during the fourth quarter. Janus Henderson Group PLC now owns 64,059 shares of the technology company’s stock valued at $108,213,000 after buying an additional 37,314 shares during the last quarter. No Street GP LP increased its holdings in shares of Fair Isaac by 212.5% in the third quarter. No Street GP LP now owns 50,000 shares of the technology company’s stock worth $74,826,000 after buying an additional 34,000 shares during the period. Wellington Management Group LLP increased its holdings in shares of Fair Isaac by 811.0% in the fourth quarter. Wellington Management Group LLP now owns 37,012 shares of the technology company’s stock worth $62,573,000 after buying an additional 32,949 shares during the period. Finally, Royal Bank of Canada lifted its stake in shares of Fair Isaac by 32.4% in the 4th quarter. Royal Bank of Canada now owns 123,361 shares of the technology company’s stock valued at $208,558,000 after acquiring an additional 30,163 shares during the last quarter. Institutional investors own 85.75% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. UBS Group increased their price target on shares of Fair Isaac from $1,250.00 to $1,270.00 and gave the company a “neutral” rating in a research report on Thursday, July 2nd. Needham & Company LLC reaffirmed a “buy” rating and issued a $1,650.00 price objective on shares of Fair Isaac in a research report on Thursday. Wells Fargo & Company boosted their target price on shares of Fair Isaac from $1,400.00 to $1,450.00 and gave the company an “overweight” rating in a research note on Thursday. Bank of America decreased their price target on shares of Fair Isaac from $1,550.00 to $1,400.00 and set a “buy” rating for the company in a research note on Tuesday, May 19th. Finally, Royal Bank Of Canada dropped their price objective on Fair Isaac from $2,400.00 to $1,525.00 and set an “outperform” rating on the stock in a research note on Thursday. Twelve analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,600.93.

Fair Isaac Company Profile

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.