Fair Isaac (FICO) AI Stock Analysis

• Market Cap: $38.55B
• Dividend Yield: N/A
• Average Volume (3M): 347.37K
• Price to Earnings (P/E): 63.7
• Beta (1Y): 1.43
• Revenue Growth: 15.91%
• EPS Growth: 29.42%
• Country: US
• Employees: 3,718
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.74
• Shares Outstanding: 24,003,656
• 10 Day Avg. Volume: 265,357
• 30 Day Avg. Volume: 347,374
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $2,050.75
• Price Target Upside: 22.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $1,834.00 ▲(9.51% Upside)

Fair Isaac's strong earnings call and technical momentum are the most significant factors driving the score. However, high leverage and valuation concerns weigh on the overall assessment. The company's robust cash flow and positive future guidance provide a solid foundation, but balance sheet risks and high P/E ratio limit the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for FICO's products, suggesting effective business strategies and market expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Product Innovation

Innovative products like FICO Score 10 BNPL expand market reach and address evolving consumer credit trends, supporting long-term growth.

Negative Factors

Balance Sheet Risks

Negative equity and high leverage pose financial risks, potentially limiting investment capacity and increasing vulnerability to economic shifts.

Mortgage Market Challenges

Ongoing mortgage market challenges could impact FICO's growth in this segment, affecting revenue from related products and services.

Uncertainties in FHFA Decision

Regulatory uncertainties could affect FICO's market position and revenue from the mortgage industry, impacting long-term strategic planning.

Fair Isaac Business Overview & Revenue Model

Company Description

Fair Isaac Corporation (FICO) is a data analytics and software company that specializes in credit scoring and predictive analytics. Founded in 1956, FICO operates primarily in the financial services sector, providing solutions that help businesses make informed decisions regarding credit risk, fraud detection, and customer engagement. Its core products include the FICO Score, widely used by lenders to evaluate consumer credit risk, and various analytics software solutions that assist organizations in optimizing their operations and enhancing customer experience across multiple industries.

How the Company Makes Money

FICO generates revenue through a combination of software licenses, subscription services, and consulting fees. The company primarily earns money from its analytics and decision management software, which is sold as a one-time license or through annual subscriptions. FICO also generates significant revenue from its credit scoring services, as lenders pay to access FICO Scores and related analytic tools. Additionally, the company has established partnerships with various financial institutions and technology firms, which can provide supplementary revenue through joint offerings and integrations. FICO's focus on developing innovative solutions in fraud detection and risk management further enhances its revenue potential in a growing market.

Fair Isaac Financial Statement Overview

Summary

Fair Isaac shows strong income statement performance with consistent revenue and profit growth, supported by robust margins. However, the balance sheet highlights significant leverage and negative equity, posing risks if not managed carefully. The cash flow position is strong, with healthy operating and free cash flows, although growth rates have shown signs of slowing.

Income Statement

Fair Isaac has demonstrated consistent revenue growth over the years, with a notable increase in total revenue from $1.29 billion in 2020 to $1.99 billion in 2025. The company maintains strong profitability metrics, with gross profit margins consistently above 75% and net profit margins improving over time, reaching approximately 32.7% in 2025. The EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the revenue growth rate has slowed slightly in recent years, which could be a potential concern if it continues.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity position and a high debt-to-equity ratio. This indicates that the company is heavily reliant on debt financing, which poses a risk in terms of financial stability. The return on equity is negative due to the negative equity, which is a concern for long-term sustainability. Despite these issues, the company has managed to grow its total assets over time, which is a positive sign.

Cash Flow

Fair Isaac's cash flow statements show a healthy operating cash flow, which has grown consistently over the years. The free cash flow has also increased, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is close to 1, indicating efficient conversion of earnings into cash. However, the free cash flow growth rate has slowed in recent years, which could be a potential area of concern if it continues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.99B	1.99B	1.72B	1.51B	1.38B	1.32B
Gross Profit	1.64B	1.64B	1.37B	1.20B	1.08B	984.07M
EBITDA	817.55M	817.55M	761.49M	663.81M	560.74M	538.83M
Net Income	651.95M	651.95M	512.81M	429.38M	373.54M	392.08M
Balance Sheet
Total Assets	1.87B	1.87B	1.72B	1.58B	1.44B	1.57B
Cash, Cash Equivalents and Short-Term Investments	134.14M	134.14M	150.67M	136.78M	133.20M	195.35M
Total Debt	3.07B	3.07B	2.24B	1.90B	1.91B	1.33B
Total Liabilities	3.61B	3.61B	2.68B	2.26B	2.24B	1.68B
Stockholders Equity	-1.75B	-1.75B	-962.68M	-687.99M	-801.95M	-110.94M
Cash Flow
Free Cash Flow	748.05M	769.88M	607.41M	464.68M	503.42M	416.25M
Operating Cash Flow	778.81M	778.81M	632.96M	468.92M	509.45M	423.82M
Investing Cash Flow	-43.72M	-43.72M	-27.99M	-15.95M	-5.67M	137.85M
Financing Cash Flow	-750.33M	-750.33M	-592.92M	-455.00M	-547.16M	-523.57M

Fair Isaac Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1674.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FICO, the sentiment is Positive. The current price of 1674.8 is above the 20-day moving average (MA) of 1630.21, above the 50-day MA of 1602.24, and below the 200-day MA of 1716.90, indicating a neutral trend. The MACD of 8.32 indicates Positive momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 45.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FICO.

Fair Isaac Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DT	77 Outperform	$14.96B	29.16	20.69%	―	18.50%	207.45%
TTD	72 Outperform	$23.32B	55.34	16.36%	―	23.18%	63.48%
DDOG	72 Outperform	$54.93B	447.79	4.45%	―	26.00%	-25.64%
WDAY	72 Outperform	$62.34B	107.34	6.66%	―	14.21%	-62.56%
FICO	69 Neutral	$38.55B	63.72	―	―	15.91%	29.42%
TEAM	67 Neutral	$43.58B	―	-15.35%	―	19.51%	53.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Fair Isaac Corporate Events

FICO’s Earnings Call: Strong Growth and Innovation

Fair Isaac Corporation (FICO) recently held its earnings call, revealing a generally positive sentiment driven by strong financial performance and innovative advancements. Despite some challenges, such as a flat performance in the Software segment and uncertainties in mortgage volume predictions, the overall outlook remains optimistic.

FICO Reports Strong Q4 Earnings and Positive Outlook

Fair Isaac Corporation, known as FICO, is a global leader in analytics software, specializing in predictive analytics and data science to enhance business decisions across various industries including financial services, insurance, and healthcare. The company is renowned for its FICO Score, a standard measure of consumer credit risk used by 90% of top U.S. lenders.

Fair Isaac Announces Retirement of Scores President

On August 28, 2025, Fair Isaac Corporation (FICO) announced the retirement of James Wehmann, President of Scores, effective September 5, 2025. Wehmann, who joined FICO in 2012, is stepping down to focus on family and personal interests. CEO William Lansing will assume direct responsibility for the Scores business, acknowledging Wehmann’s significant contributions and leaving the Scores division in a strong position.

The most recent analyst rating on (FICO) stock is a Buy with a $1800.00 price target. To see the full list of analyst forecasts on Fair Isaac stock, see the FICO Stock Forecast page.