Fair Isaac (NYSE:FICO) Releases Quarterly Earnings Results, Beats Expectations By $0.41 EPS

Fair Isaac (NYSE:FICO) announced its quarterly earnings results on Wednesday. The technology company reported $11.10 earnings per share for the quarter, beating the consensus estimate of $10.69 by $0.41, FiscalAI reports. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%. The firm had revenue of $657.05 million for the quarter, compared to analysts’ expectations of $651.73 million. During the same period in the prior year, the business posted $7.74 earnings per share. The company’s revenue was up 27.4% on a year-over-year basis.

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

• FICO reported record fiscal 2026 results: revenue rose 27% to $2.535 billion, non-GAAP EPS increased 44% to $42.99, and free cash flow grew 40% to $1.034 billion. Fourth-quarter GAAP earnings included $44 million in pre-tax charges, including a proposed antitrust settlement accrual and restructuring costs.
• Software platform momentum remained strong: platform ARR grew 72% to $453 million, while trailing 12-month ACV bookings increased 36% to a record $140 million. However, non-platform ARR declined 18%, reflecting migrations and end-of-life products.
• FICO withheld fiscal 2027 guidance, citing unsettled custom mortgage-pricing agreements, elevated rates, and uncertain origination volumes. Management also declined to disclose pricing details, expected adoption by program, or its mortgage-volume assumptions.
• Scores revenue rose 33% in Q4, largely on higher mortgage score prices, while mortgage origination volumes fell by a high-single-digit percentage amid elevated interest rates. FICO said it paused share repurchases in Q4 to pay down debt, but expects to resume buybacks after reducing leverage.

Fair Isaac Price Performance

Shares of NYSE:FICO traded down $21.86 on Wednesday, hitting $702.52. The company’s stock had a trading volume of 1,189,420 shares, compared to its average volume of 946,451. The company has a market capitalization of $15.17 billion, a PE ratio of 20.29, a PEG ratio of 0.88 and a beta of 1.36. The company has a 50-day simple moving average of $845.21 and a 200 day simple moving average of $1,115.37. Fair Isaac has a 1 year low of $586.05 and a 1 year high of $1,858.91.

Analyst Upgrades and Downgrades

FICO has been the subject of several recent analyst reports. Raymond James Financial reduced their price objective on shares of Fair Isaac from $1,750.00 to $1,230.00 and set an “outperform” rating for the company in a research note on Tuesday, October 13th. Credit Suisse Group set a $1,150.00 target price on shares of Fair Isaac in a report on Wednesday, September 30th. Huber Research cut shares of Fair Isaac to a “strong sell” rating in a research note on Tuesday, September 29th. JPMorgan Chase & Co. cut their price target on shares of Fair Isaac from $1,530.00 to $900.00 and set a “neutral” rating for the company in a report on Monday, October 26th. Finally, UBS Group reduced their price target on shares of Fair Isaac from $1,100.00 to $942.00 and set a “neutral” rating for the company in a research report on Monday, October 26th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $967.12.

Fair Isaac News Roundup

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

• Positive Sentiment: Fiscal Q4 earnings were $11.10 per share, above consensus estimates, while revenue of $657.05 million also topped expectations and rose 27.4% year over year. Fair Isaac Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Several lenders joined FICO’s Preferred Program, and a regional lender upgraded to Auto Score 10—signs of continued adoption of its scoring products. Lenders Join FICO Preferred Program
• Negative Sentiment: FICO declined to issue guidance as it moves mortgage-originations pricing from a flat fee to customer-specific pricing. The lack of an outlook and uncertainty about how the new structure will affect revenue likely tempered the positive earnings news. FICO Declines to Share Guidance Amid Price Structure Change
• Negative Sentiment: Jefferies sharply lowered its price target to $925 from $1,675, adding to concerns about the stock’s outlook. Other coverage has also highlighted pricing and competitive pressure. Jefferies Adjusts Price Target

Fair Isaac Company Profile

Fair Isaac Corporation, commonly known as FICO, develops analytics and decision-management software used by businesses to assess risk, detect fraud and make customer-related decisions. The company is best known for the FICO Score, a credit-risk scoring system used by lenders and other financial institutions to evaluate consumer creditworthiness.

FICO’s offerings include credit scoring solutions, decisioning platforms, fraud-detection tools, customer management software and predictive analytics.