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

Fair Isaac (NYSE:FICO) issued its quarterly earnings results on Wednesday. The technology company reported $11.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.69 by $0.41, FiscalAI reports. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%. The firm had revenue of $657.05 million for the quarter, compared to analysts’ expectations of $651.73 million. During the same quarter in the previous year, the firm posted $7.74 EPS. The firm’s revenue for the quarter 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 Stock Performance

Shares of NYSE FICO traded down $5.50 during mid-day trading on Thursday, hitting $695.53. The stock had a trading volume of 693,449 shares, compared to its average volume of 470,428. The business has a 50 day moving average price of $845.21 and a two-hundred day moving average price of $1,115.37. The firm has a market cap of $15.02 billion, a P/E ratio of 19.97, a price-to-earnings-growth ratio of 0.88 and a beta of 1.36. Fair Isaac has a 1 year low of $586.05 and a 1 year high of $1,858.91.

Fair Isaac News Roundup

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

• Positive Sentiment: Fiscal Q4 adjusted earnings were $11.10 per share, above consensus, while revenue of $657.05 million also topped estimates and rose 27.4% year over year. The strong growth provides a fundamental bright spot. Zacks earnings report
• Positive Sentiment: Needham lowered its price target to $925 from $1,100 but maintained a Buy rating, implying substantial upside from the price cited in the report. Needham analyst recommendations
• Neutral Sentiment: FICO is shifting mortgage-origination pricing from a flat fee to a structure tailored to individual customers. The change could alter monetization, but its financial impact is not yet clear. Wall Street Journal report
• Negative Sentiment: Despite the earnings beat, coverage reported that FICO shares fell after results, suggesting investors were looking for clearer forward expectations. The company declined to provide guidance amid the pricing transition. Yahoo Finance report
• Negative Sentiment: Barclays cut its target to $800 from $875, and JPMorgan reduced its target to $800 from $900. These reductions may reinforce concerns about FICO’s near-term prospects, even as the firms’ new targets remain above the cited share price. Barclays target update JPMorgan target update

Analyst Ratings Changes

Several research firms have recently commented on FICO. Citigroup reaffirmed a “neutral” rating on shares of Fair Isaac in a report on Tuesday, October 27th. BMO Capital Markets lowered their price target on Fair Isaac from $1,150.00 to $897.00 and set an “outperform” rating for the company in a research note on Monday, October 26th. Weiss Ratings lowered Fair Isaac from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, October 23rd. JPMorgan Chase & Co. dropped their price target on shares of Fair Isaac from $1,530.00 to $900.00 and set a “neutral” rating for the company in a research report on Monday, October 26th. Finally, Needham & Company LLC dropped their price objective on Fair Isaac from $1,100.00 to $925.00 and set a “buy” rating for the company in a report on Thursday. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Fair Isaac has a consensus rating of “Hold” and an average price target of $933.69.

Fair Isaac Company Profile

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.