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

Posted by Stanley Muller on Jul 30th, 2026

Fair Isaac (NYSE:FICO – Get Free Report) released its quarterly earnings results on Wednesday. The technology company reported $12.18 earnings per share for the quarter, beating the consensus estimate of $11.76 by $0.42, FiscalAI reports. The business had revenue of $674.19 million during the quarter, compared to analysts’ expectations of $679.17 million. Fair Isaac had a negative return on equity of 41.04% and a net margin of 33.67%.The firm’s revenue for the quarter was up 25.7% compared to the same quarter last year. During the same quarter last year, the business posted $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 Price Performance

Shares of FICO stock traded down $222.48 during mid-day trading on Thursday, hitting $1,150.60. The stock had a trading volume of 435,705 shares, compared to its average volume of 338,660. The firm has a market capitalization of $26.68 billion, a P/E ratio of 36.47, a price-to-earnings-growth ratio of 1.19 and a beta of 1.29. Fair Isaac has a 12-month low of $870.01 and a 12-month high of $1,998.01. The firm’s 50-day moving average is $1,220.61 and its two-hundred day moving average is $1,237.75.

Hedge Funds Weigh In On Fair Isaac

Institutional investors have recently bought and sold shares of the business. Compound Planning Inc. boosted its holdings in Fair Isaac by 12.7% in the fourth quarter. Compound Planning Inc. now owns 276 shares of the technology company’s stock valued at $466,000 after purchasing an additional 31 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in Fair Isaac by 6.5% in the fourth quarter. Corient Private Wealth LLC now owns 10,761 shares of the technology company’s stock valued at $18,193,000 after acquiring an additional 654 shares during the period. Mercer Global Advisors Inc. ADV grew its stake in shares of Fair Isaac by 17.5% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 1,503 shares of the technology company’s stock worth $2,339,000 after purchasing an additional 224 shares during the period. Vident Advisory LLC lifted its stake in shares of Fair Isaac by 1.7% in the 4th quarter. Vident Advisory LLC now owns 4,503 shares of the technology company’s stock valued at $7,613,000 after purchasing an additional 76 shares during the period. Finally, Beacon Pointe Advisors LLC grew its position in Fair Isaac by 2.8% during the fourth quarter. Beacon Pointe Advisors LLC now owns 1,058 shares of the technology company’s stock valued at $1,789,000 after buying an additional 29 shares during the period. 85.75% of the stock is owned by hedge funds and other institutional investors.

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.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Wall Street Zen cut shares of Fair Isaac from a “buy” rating to a “hold” rating in a research report on Sunday, June 28th. Bank of America cut their target price on Fair Isaac from $1,550.00 to $1,400.00 and set a “buy” rating on the stock in a research report on Tuesday, May 19th. Raymond James Financial reissued an “outperform” rating and issued a $1,750.00 target price on shares of Fair Isaac in a research note on Wednesday, April 29th. Mizuho assumed coverage on shares of Fair Isaac in a report on Thursday, April 16th. They set an “outperform” rating and a $1,416.00 price target on the stock. Finally, The Goldman Sachs Group decreased their price objective on shares of Fair Isaac from $1,770.00 to $1,528.00 and set a “buy” rating for the company in a research note on Thursday, April 2nd. Twelve equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Fair Isaac has an average rating of “Moderate Buy” and a consensus price target of $1,624.40.

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About Fair Isaac

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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.