Fair Isaac (NYSE:FICO) Shares Gap Down – What’s Next?

Fair Isaac Corporation (NYSE:FICO)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $1,373.08, but opened at $1,150.00. Fair Isaac shares last traded at $1,177.7110, with a volume of 133,764 shares changing hands.

More Fair Isaac News

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

• Positive Sentiment: FICO reported fiscal third-quarter adjusted EPS of $12.18, above the $11.76 analyst consensus, while revenue increased 25.7% year over year to $674.2 million. Operating profit, net income and operating cash flow also posted substantial gains, highlighting continued profitability and operating leverage. Fair Isaac Raises Guidance As FICO Score Business Drives Growth
• Positive Sentiment: The company raised fiscal 2026 adjusted EPS guidance to approximately $42.43, slightly above the $42.06 consensus estimate. Analysts also pointed to strength in the core FICO Score business, margin expansion and growing platform annual recurring revenue. Wolfe Research maintained a Buy rating with a $1,450 price target, while Needham reaffirmed its Buy rating and set a $1,650 target. Analyst Maintains Buy on FICO
• Neutral Sentiment: Fiscal 2026 revenue guidance was maintained at roughly $2.5 billion, in line with expectations. The outlook suggests management remains confident in its longer-term growth strategy, but did not provide a significant revenue catalyst for investors.
• Negative Sentiment: Quarterly revenue of $674.2 million fell short of analyst estimates ranging from approximately $679 million to $692 million. The shortfall, combined with warnings about near-term mortgage headwinds, overshadowed the earnings beat and raised concerns about the pace of growth in lending-related businesses. Fair Isaac Misses Revenue Estimates
• Negative Sentiment: The market reaction reflects FICO’s demanding valuation: the stock remains well above typical technology-sector multiples, making it particularly sensitive to revenue misses or signs of slowing mortgage activity.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Bank of America dropped their price objective on Fair Isaac from $1,550.00 to $1,400.00 and set a “buy” rating for the company in a report on Tuesday, May 19th. UBS Group boosted their target price on Fair Isaac from $1,250.00 to $1,270.00 and gave the company a “neutral” rating in a research note on Thursday, July 2nd. Wells Fargo & Company upped their target price on Fair Isaac from $1,400.00 to $1,450.00 and gave the company an “overweight” rating in a report on Thursday. Weiss Ratings raised Fair Isaac from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 15th. 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 Thursday. Twelve equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, Fair Isaac has an average rating of “Moderate Buy” and an average target price of $1,631.50.

Fair Isaac Stock Down 16.3%

The company’s fifty day simple moving average is $1,220.61 and its 200 day simple moving average is $1,237.75. The firm has a market capitalization of $26.65 billion, a PE ratio of 36.44, a price-to-earnings-growth ratio of 1.19 and a beta of 1.29.

Fair Isaac (NYSE:FICO) last posted its earnings results on Wednesday, July 29th. The technology company reported $12.18 earnings per share for the quarter, topping analysts’ consensus estimates of $11.76 by $0.42. Fair Isaac had a negative return on equity of 41.04% and a net margin of 33.67%.The firm had revenue of $674.19 million for the quarter, compared to the consensus estimate of $679.17 million. During the same quarter in the prior year, the business earned $8.57 EPS. The business’s revenue for the quarter was up 25.7% on a year-over-year basis. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. Equities research analysts forecast that Fair Isaac Corporation will post 38 EPS for the current year.

Institutional Investors Weigh In On Fair Isaac

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bayban purchased a new position in Fair Isaac during the fourth quarter valued at $25,000. Physician Wealth Advisors Inc. grew its position in shares of Fair Isaac by 166.7% in the 4th quarter. Physician Wealth Advisors Inc. now owns 16 shares of the technology company’s stock worth $27,000 after buying an additional 10 shares during the period. Torren Management LLC purchased a new stake in shares of Fair Isaac in the 4th quarter worth about $30,000. Rakuten Securities Inc. increased its stake in shares of Fair Isaac by 100.0% in the 2nd quarter. Rakuten Securities Inc. now owns 24 shares of the technology company’s stock worth $44,000 after acquiring an additional 12 shares in the last quarter. Finally, Elyxium Wealth LLC purchased a new position in Fair Isaac during the 4th quarter valued at about $42,000. 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.