Fair Isaac (NYSE:FICO) Releases Quarterly Earnings Results, Beats Expectations By $1.53 EPS

Fair Isaac (NYSE:FICO) released its quarterly earnings data on Tuesday. The technology company reported $12.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.97 by $1.53, FiscalAI reports. Fair Isaac had a negative return on equity of 40.98% and a net margin of 31.89%.The firm had revenue of $691.68 million during the quarter, compared to analysts’ expectations of $621.81 million. During the same quarter last year, the firm earned $7.81 earnings per share. The business’s revenue for the quarter was up 38.7% on a year-over-year basis. Fair Isaac updated its FY 2026 guidance to 40.450-40.450 EPS.

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

• FICO reported a very strong quarter—Q2 revenue of $692 million (up 39%), GAAP EPS of $11.14 (up 69%)—and raised full?year guidance to $2.45 billion in revenue and higher EPS targets.
• The Scores segment drove the beat with $475 million in revenue (up 60%), led by mortgage originations revenue that rose 127% and accounted for ~72% of B2B Scores revenue.
• Platform momentum remains strong: Software ARR reached $789 million (+10% YoY) with Platform ARR at $349 million (up 49%) and Platform net retention of 136%, reflecting healthy bookings and “land?and?expand” demand.
• FICO lowered FICO Score 10T direct?license pricing to $0.99 plus a $65 funding fee to spur adoption and expanded its early?adopter program, but wide rollout still depends on FHFA/GSE sign?off and reseller readiness.
• Cash generation and capital return are strong—Q2 free cash flow of $214 million, $867M trailing?4Q FCF, and a record $605M share repurchase this quarter—while total debt is <$strong>$3.64 billion at a 5.5% average rate and interest expense is expected to trend modestly higher.

Fair Isaac Stock Performance

Shares of NYSE FICO traded up $32.25 during mid-day trading on Wednesday, reaching $1,042.75. 225,562 shares of the company traded hands, compared to its average volume of 355,583. The company’s fifty day moving average is $1,157.65 and its two-hundred day moving average is $1,470.15. Fair Isaac has a fifty-two week low of $870.01 and a fifty-two week high of $2,217.60. The stock has a market cap of $24.74 billion, a PE ratio of 39.01, a price-to-earnings-growth ratio of 0.97 and a beta of 1.38.

Fair Isaac announced that its board has initiated a stock repurchase program on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the technology company to buy up to 5.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its stock is undervalued.

More Fair Isaac News

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

• Positive Sentiment: Q2 results beat expectations — revenue rose ~38.7% YoY to ~$691.7M and EPS topped consensus, driving the immediate rally. MarketBeat Earnings Release
• Positive Sentiment: Company signaled FY2026 revenue around ~$2.45B and described a new pricing approach for FICO Score 10T ($0.99 + $65 funding fee) that management says supports revenue conversion and predictability. Seeking Alpha
• Positive Sentiment: Market commentary highlights the company raising its FY outlook amid double?digit revenue growth, reinforcing the narrative of durable top?line momentum. MarketWatch
• Positive Sentiment: Inclusion in analyst/market lists of AI?exposed services names increases thematic interest (Goldman/Barron’s coverage), which can attract momentum buyers. Barron’s
• Neutral Sentiment: FY2026 EPS guidance was reiterated/updated to 40.45 — roughly in line with management’s release but slightly below some street estimates, while revenue guidance centers near $2.5B; the mix gives visibility but leaves room for analyst revisions. Zacks
• Neutral Sentiment: FICO’s UK credit?card market report highlights recovering spend but persistent affordability pressures — useful macro data but not immediate company?specific upside. BusinessWire
• Negative Sentiment: Analyst action: Needham cut its price target (from $1,975 to $1,650) while keeping a Buy — a signal that upside expectations were trimmed and could cap near?term upside. Benzinga
• Negative Sentiment: Significant insider selling and mixed institutional flows were noted in post?earnings data, which can pressure sentiment despite the beat. Quiver/Equity Data

Insider Activity at Fair Isaac

In other Fair Isaac news, Director Joanna Rees sold 358 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $1,360.00, for a total transaction of $486,880.00. Following the transaction, the director owned 11,204 shares in the company, valued at $15,237,440. This trade represents a 3.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Eva Manolis sold 520 shares of Fair Isaac stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $1,227.63, for a total transaction of $638,367.60. Following the completion of the transaction, the director directly owned 344 shares in the company, valued at approximately $422,304.72. This represents a 60.19% decrease in their position. The disclosure for this sale is available in the SEC filing. 3.02% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Mizuho initiated coverage on Fair Isaac in a research note on Thursday, April 16th. They set an “outperform” rating and a $1,416.00 price target for the company. Wells Fargo & Company dropped their price objective on Fair Isaac from $2,300.00 to $1,650.00 and set an “overweight” rating on the stock in a report on Thursday, April 23rd. Robert W. Baird set a $1,549.00 price objective on shares of Fair Isaac in a research report on Wednesday. Bank of America began coverage on shares of Fair Isaac in a research note on Tuesday, February 17th. They issued a “buy” rating and a $1,900.00 target price for the company. Finally, The Goldman Sachs Group decreased their target price on shares of Fair Isaac from $1,770.00 to $1,528.00 and set a “buy” rating for the company in a research report on Thursday, April 2nd. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Fair Isaac presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,719.36.

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.