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

Fair Isaac (NYSE:FICO) announced 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. Fair Isaac had a net margin of 33.67% and a negative return on equity of 41.04%. The business had revenue of $674.19 million during the quarter, compared to the consensus estimate of $679.17 million. During the same quarter last year, the firm earned $8.57 earnings per share. Fair Isaac’s quarterly revenue 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 Stock Performance

NYSE:FICO traded up $38.10 during trading on Wednesday, reaching $1,374.32. The company’s stock had a trading volume of 432,113 shares, compared to its average volume of 224,148. Fair Isaac has a 12 month low of $870.01 and a 12 month high of $1,998.01. The firm has a market cap of $31.87 billion, a price-to-earnings ratio of 43.53, a price-to-earnings-growth ratio of 1.19 and a beta of 1.29. The firm has a 50 day moving average of $1,217.73 and a 200-day moving average of $1,239.24.

Analyst Ratings Changes

Several research firms have weighed in on FICO. Wells Fargo & Company decreased their price target on shares of Fair Isaac from $1,650.00 to $1,400.00 and set an “overweight” rating for the company in a research note on Thursday, April 30th. Wall Street Zen downgraded Fair Isaac from a “buy” rating to a “hold” rating in a research note on Sunday, June 28th. Jefferies Financial Group reduced their target price on 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. Mizuho started coverage on Fair Isaac in a research note on Thursday, April 16th. They set an “outperform” rating and a $1,416.00 price target on the stock. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $1,650.00 price target on shares of Fair Isaac in a report on Tuesday, June 9th. Ten research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Fair Isaac has a consensus rating of “Moderate Buy” and a consensus price target of $1,627.93.

Fair Isaac News Summary

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.

Institutional Trading of Fair Isaac

A number of large investors have recently bought and sold shares of FICO. Morgan Stanley lifted its stake in shares of Fair Isaac by 2.3% during the 4th quarter. Morgan Stanley now owns 499,836 shares of the technology company’s stock valued at $845,037,000 after buying an additional 11,363 shares in the last quarter. Primecap Management Co. CA grew its stake in Fair Isaac by 34.7% in the 4th quarter. Primecap Management Co. CA now owns 243,374 shares of the technology company’s stock valued at $411,453,000 after buying an additional 62,724 shares in the last quarter. Alliancebernstein L.P. raised its holdings in Fair Isaac by 16.1% during the 2nd quarter. Alliancebernstein L.P. now owns 211,947 shares of the technology company’s stock valued at $387,431,000 after acquiring an additional 29,408 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in Fair Isaac by 1.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 179,373 shares of the technology company’s stock valued at $303,252,000 after acquiring an additional 2,275 shares during the period. Finally, Royal Bank of Canada lifted its position in shares of Fair Isaac by 32.4% during the fourth quarter. Royal Bank of Canada now owns 123,361 shares of the technology company’s stock worth $208,558,000 after acquiring an additional 30,163 shares in the last quarter. 85.75% of the stock is owned by hedge funds and other 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.