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

Fair Isaac (NYSE:FICO) released its quarterly earnings results on Wednesday. The technology company reported $11.10 EPS for the quarter, beating the consensus estimate of $10.69 by $0.41, FiscalAI reports. Fair Isaac had a net margin of 34.05% and a negative return on equity of 32.51%. The company had revenue of $657.05 million for the quarter, compared to analyst estimates of $651.73 million. During the same quarter last year, the business earned $7.74 earnings per share. The firm’s revenue 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 Trading Down 3.0%

FICO traded down $21.86 during midday trading on Wednesday, hitting $702.52. 1,189,420 shares of the company traded hands, compared to its average volume of 946,451. The company has a market capitalization of $15.17 billion, a price-to-earnings ratio of 20.29, a PEG ratio of 0.88 and a beta of 1.36. Fair Isaac has a 52-week low of $586.05 and a 52-week high of $1,858.91. The business has a 50 day simple moving average of $845.21 and a two-hundred day simple moving average of $1,115.37.

Analysts Set New Price Targets

Several equities analysts recently weighed in on FICO shares. Susquehanna set a $700.00 price target on Fair Isaac in a research note on Wednesday, September 30th. Raymond James Financial lowered their price target on Fair Isaac from $1,750.00 to $1,230.00 and set an “outperform” rating on the stock in a research report on Tuesday, October 13th. BMO Capital Markets dropped their price objective on Fair Isaac from $1,150.00 to $897.00 and set an “outperform” rating on the stock in a report on Monday, October 26th. Huber Research lowered Fair Isaac to a “strong sell” rating in a report on Tuesday, September 29th. Finally, Needham & Company LLC cut their price objective on Fair Isaac from $1,650.00 to $1,100.00 and set a “buy” rating for the company in a research report on Tuesday, October 13th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $967.12.

Key Fair Isaac News

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

• Positive Sentiment: Fiscal Q4 earnings were $11.10 per share, above consensus estimates, while revenue of $657.05 million also topped expectations and rose 27.4% year over year. Fair Isaac Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Several lenders joined FICO’s Preferred Program, and a regional lender upgraded to Auto Score 10—signs of continued adoption of its scoring products. Lenders Join FICO Preferred Program
• Negative Sentiment: FICO declined to issue guidance as it moves mortgage-originations pricing from a flat fee to customer-specific pricing. The lack of an outlook and uncertainty about how the new structure will affect revenue likely tempered the positive earnings news. FICO Declines to Share Guidance Amid Price Structure Change
• Negative Sentiment: Jefferies sharply lowered its price target to $925 from $1,675, adding to concerns about the stock’s outlook. Other coverage has also highlighted pricing and competitive pressure. Jefferies Adjusts Price Target

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.