Fair Isaac (NYSE:FICO) Announces Quarterly Earnings Results, Beats Expectations By $0.42 EPS

Fair Isaac (NYSE:FICO) issued its earnings results on Wednesday. The technology company reported $12.18 earnings per share for the quarter, topping analysts’ consensus estimates of $11.76 by $0.42, FiscalAI reports. The business had revenue of $674.19 million during the quarter, compared to analyst estimates of $679.17 million. Fair Isaac had a negative return on equity of 41.04% and a net margin of 33.67%.Fair Isaac’s revenue was up 25.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $8.57 EPS. 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 Stock Performance

Shares of NYSE FICO traded up $38.10 during midday trading on Wednesday, hitting $1,374.32. 432,113 shares of the company’s stock traded hands, compared to its average volume of 224,148. The firm has a fifty day moving average of $1,217.73 and a 200 day moving average of $1,239.24. Fair Isaac has a 1 year low of $870.01 and a 1 year high of $1,998.01. The stock has a market capitalization of $31.87 billion, a price-to-earnings ratio of 44.44, a price-to-earnings-growth ratio of 1.19 and a beta of 1.29.

Institutional Trading of Fair Isaac

Several large investors have recently added to or reduced their stakes in FICO. Brighton Jones LLC raised its position in Fair Isaac by 168.7% in the fourth quarter. Brighton Jones LLC now owns 481 shares of the technology company’s stock worth $958,000 after acquiring an additional 302 shares during the period. Great Lakes Advisors LLC boosted its stake in shares of Fair Isaac by 5.7% during the 1st quarter. Great Lakes Advisors LLC now owns 112 shares of the technology company’s stock worth $207,000 after acquiring an additional 6 shares during the last quarter. Woodline Partners LP grew its position in shares of Fair Isaac by 46.1% during the 1st quarter. Woodline Partners LP now owns 2,138 shares of the technology company’s stock valued at $3,943,000 after acquiring an additional 675 shares during the period. Treasurer of the State of North Carolina grew its position in shares of Fair Isaac by 18.0% during the 2nd quarter. Treasurer of the State of North Carolina now owns 14,037 shares of the technology company’s stock valued at $25,659,000 after acquiring an additional 2,146 shares during the period. Finally, Alliancebernstein L.P. increased its stake in shares of Fair Isaac by 16.1% in the 2nd quarter. Alliancebernstein L.P. now owns 211,947 shares of the technology company’s stock worth $387,431,000 after purchasing an additional 29,408 shares in the last quarter. 85.75% of the stock is currently owned by institutional investors.

Trending Headlines about Fair Isaac

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

• Positive Sentiment: Adjusted earnings were approximately $12.18 per share, exceeding analyst estimates. Fair Isaac also raised or maintained fiscal 2026 EPS guidance at about $42.43, modestly above the $42.06 consensus estimate. Fair Isaac Q3 earnings metrics
• Positive Sentiment: Underlying profitability remained strong: revenue increased 25.7% year over year to $674.2 million, operating profit rose 38.1% to $362.6 million, net income attributable to common shareholders climbed 30.5% to $237.2 million, and operating cash flow grew 32.9% to $380.4 million. Diluted EPS increased 41.2% year over year to $10.45 under the reported GAAP measure. FICO Q3 2026 earnings results
• Neutral Sentiment: Full-year revenue guidance was approximately $2.5 billion, broadly in line with analyst expectations. The median analyst price target cited was $1,472, although published targets ranged widely from $1,225 to $1,700, reflecting differing views on valuation and growth.
• Negative Sentiment: Quarterly revenue of $674.2 million fell short of estimates ranging from roughly $679 million to $692.4 million. For a premium-valued stock, the revenue miss raised concerns that growth may be slowing relative to expectations, despite the earnings beat.
• Negative Sentiment: Recent trading data showed two FICO insider sales and no insider purchases during the past six months. Institutional activity was mixed, with 567 investors reducing positions compared with 324 adding shares, potentially adding to investor caution.

Analyst Ratings Changes

A number of brokerages have recently commented on FICO. Jefferies Financial Group reduced their price target on shares of Fair Isaac from $1,800.00 to $1,700.00 and set a “buy” rating for the company in a research note on Monday, May 4th. Weiss Ratings upgraded shares of Fair Isaac from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 15th. Wall Street Zen downgraded shares of Fair Isaac from a “buy” rating to a “hold” rating in a research report on Sunday, June 28th. Barclays decreased their target price on shares of Fair Isaac from $2,400.00 to $1,950.00 and set an “overweight” rating for the company in a research note on Friday, April 10th. Finally, Raymond James Financial reissued an “outperform” rating and set a $1,750.00 price target on shares of Fair Isaac in a report on Wednesday, April 29th. Ten research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $1,627.93.

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.