Fair Isaac (NYSE:FICO) Releases Earnings Results

Fair Isaac (NYSE:FICO) posted its quarterly earnings results on Wednesday. The technology company reported $7.33 earnings per share for the quarter, topping the consensus estimate of $7.08 by $0.25, FiscalAI reports. The firm had revenue of $766.00 million during the quarter, compared to analysts’ expectations of $501.05 million. Fair Isaac had a negative return on equity of 43.97% and a net margin of 32.75%.The company’s revenue was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $5.79 earnings per share. Fair Isaac updated its FY 2026 guidance to 38.170-38.170 EPS.

Here are the key takeaways from Fair Isaac’s conference call:

• Reported a strong quarter with Q1 revenue of $512 million, GAAP EPS of $6.61 and $165 million of free cash flow while repurchasing 95,000 shares ($163 million), underscoring cash generation and shareholder returns.
• Scores business led growth — Q1 scores revenue was $305 million (up 29% YoY) with mortgage originations up 60% YoY, and FICO added five resellers to its Mortgage Direct Licensing Program now in advanced testing toward production launches.
• FICO highlighted FICO Score 10T (improved predictive accuracy) and an UltraFICO partnership with Plaid, but timing and regulatory approval for broad conforming-market adoption remain uncertain.
• Software momentum continued: record quarterly ACV bookings of $38 million, platform ARR of $303 million (up 33% YoY) and a platform net retention rate of 122%, plus Gartner recognition as a leader for decision intelligence.
• The company reiterated fiscal 2026 guidance despite the strong quarter, citing macro and rate uncertainty, and balance sheet exposure includes $3.2 billion of debt with only $218 million of cash and $415 million drawn on the revolver.

Fair Isaac Trading Down 0.7%

FICO opened at $1,514.98 on Thursday. The firm’s 50 day simple moving average is $1,695.87 and its two-hundred day simple moving average is $1,604.48. The company has a market capitalization of $36.00 billion, a PE ratio of 56.75, a PEG ratio of 1.65 and a beta of 1.30. Fair Isaac has a 1-year low of $1,300.00 and a 1-year high of $2,217.60.

Trending Headlines about Fair Isaac

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

• Positive Sentiment: Q1 results beat estimates: FICO reported $7.33 EPS and strong revenue growth with year-over-year revenue up ~16%, beating consensus and showing strength in the scores segment — a core recurring-revenue driver. Earnings Release
• Positive Sentiment: Analyst support: Needham reiterated a Buy and set a $1,975 price target (material upside from the current level), which helps investor sentiment and validates the growth story. Needham Reaffirms Buy
• Positive Sentiment: Partnership win: FICO announced a partnership with Tech Mahindra to accelerate AI-driven decisioning and core-banking transformations — expands go-to-market for AI decisioning in financial services and supports longer-term revenue growth. Tech Mahindra Partnership
• Neutral Sentiment: Calls and coverage: Earnings call transcripts and analyst write-ups highlight strong scores revenue and recurring demand; multiple outlets published call transcripts and analysis for investors digging into segment performance and backlog. Earnings Call Transcript
• Neutral Sentiment: Growth narrative remains intact: analyst pieces (Zacks, Forbes coverage on AI and credit scoring) continue to cite FICO’s long runway from AI adoption and its attractive margins, keeping longer-term bulls engaged. Key Metrics Analysis
• Negative Sentiment: Guidance slightly light: FICO set FY26 EPS guidance at 38.17 (single point) which was marginally below consensus (~38.39) — that trim vs. expectations likely pressured the stock despite the quarter beat.

Insider Transactions at Fair Isaac

In related news, Director Eva Manolis sold 521 shares of the firm’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $1,825.83, for a total value of $951,257.43. Following the transaction, the director directly owned 344 shares of the company’s stock, valued at approximately $628,085.52. This trade represents a 60.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Steven P. Weber sold 1,426 shares of Fair Isaac stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $1,810.00, for a total value of $2,581,060.00. Following the transaction, the chief financial officer owned 2,804 shares in the company, valued at $5,075,240. This trade represents a 33.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 4,347 shares of company stock worth $7,691,229 in the last three months. Corporate insiders own 3.46% of the company’s stock.

Institutional Trading of Fair Isaac

Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its holdings in shares of 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 purchasing an additional 302 shares during the last quarter. Great Lakes Advisors LLC increased its stake in Fair Isaac by 5.7% in 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 increased its stake in Fair Isaac by 46.1% in the 1st quarter. Woodline Partners LP now owns 2,138 shares of the technology company’s stock worth $3,943,000 after acquiring an additional 675 shares during the last quarter. Treasurer of the State of North Carolina boosted 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 last quarter. Finally, Alliancebernstein L.P. grew its holdings in shares of Fair Isaac by 16.1% in the second quarter. Alliancebernstein L.P. now owns 211,947 shares of the technology company’s stock valued at $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.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on FICO shares. Jefferies Financial Group boosted their target price on Fair Isaac from $2,100.00 to $2,200.00 and gave the stock a “buy” rating in a research report on Friday, January 16th. Seaport Research Partners raised shares of Fair Isaac to a “strong-buy” rating in a report on Wednesday, October 1st. Robert W. Baird raised their target price on shares of Fair Isaac from $1,900.00 to $1,960.00 and gave the stock an “outperform” rating in a report on Thursday, November 6th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Fair Isaac in a research report on Monday, December 29th. Finally, BMO Capital Markets lowered their price target on Fair Isaac from $2,300.00 to $2,200.00 and set an “outperform” rating on the stock in a report on Thursday, November 6th. Nine analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $2,094.08.

Fair Isaac Company Profile

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.