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

Fair Isaac (NYSE:FICO) released its earnings results on Wednesday. The technology company reported $11.10 EPS for the quarter, topping analysts’ consensus estimates of $10.69 by $0.41, FiscalAI reports. Fair Isaac had a net margin of 32.94% and a negative return on equity of 31.37%. The company had revenue of $657.05 million during the quarter, compared to analysts’ expectations of $651.73 million. During the same period last year, the business earned $7.74 EPS. Fair Isaac’s revenue for the quarter 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 Stock Performance

NYSE FICO traded down $27.06 on Friday, reaching $680.34. 198,264 shares of the company’s stock traded hands, compared to its average volume of 472,347. Fair Isaac has a fifty-two week low of $586.05 and a fifty-two week high of $1,858.91. The firm has a market cap of $14.70 billion, a price-to-earnings ratio of 18.75, a P/E/G ratio of 0.85 and a beta of 1.36. The stock has a 50 day moving average price of $836.72 and a 200-day moving average price of $1,111.06.

Analyst Upgrades and Downgrades

FICO has been the subject of several research reports. BMO Capital Markets lowered their price objective on shares of Fair Isaac from $1,150.00 to $897.00 and set an “outperform” rating for the company in a research note on Monday, October 26th. Zacks Research downgraded Fair Isaac from a “hold” rating to a “strong sell” rating in a research report on Wednesday, October 7th. Griffin Securities set a $897.00 target price on Fair Isaac in a research note on Monday, October 26th. Susquehanna set a $700.00 price target on Fair Isaac in a research report on Wednesday, September 30th. Finally, Royal Bank Of Canada downgraded Fair Isaac from an “outperform” rating to a “sector perform” rating and dropped their price target for the company from $1,045.00 to $770.00 in a research note on Thursday. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Fair Isaac currently has a consensus rating of “Hold” and a consensus price target of $917.44.

More Fair Isaac News

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

• Positive Sentiment: FICO reported Q4 adjusted earnings of $11.10 per share, above the $10.69 consensus, and revenue of $657.05 million, ahead of estimates and up 27.4% year over year. The company also highlighted growth in software and scores, alongside strong cash flow. FICO Q4 Earnings Beat on Scores, Pricing and Software Growth
• Neutral Sentiment: FICO is shifting mortgage-origination pricing from a flat fee to a customer-specific structure. The change could create pricing opportunities, but makes near-term revenue harder to forecast. FICO Declines to Share Guidance Amid Price Structure Change
• Negative Sentiment: The company withheld fiscal 2027 guidance amid uncertainty over mortgage pricing and weak mortgage volumes. Investors may also be concerned about competition from a low-cost score alternative, adding pressure to the outlook despite the quarterly beat. FICO Q4’26 Earnings Call Highlights Pricing Uncertainty for FY27
• Negative Sentiment: Several firms cut their price targets after results, including JPMorgan and Barclays to $800, Wells Fargo to $650, and Needham to $925. While ratings varied, the reductions signal more cautious expectations and may have reinforced selling pressure. Wells Fargo Adjusts Price Target on Fair Isaac

About Fair Isaac

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.