Fair Isaac Corporation (FICO)
NYSE:FICO
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Fair Isaac
(NYSE:FICO)
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Rating:72Outperform
Price Target:
$1,122.00
▲(4.52% Upside)
Action:UpgradedDate:04/29/26
The score is driven mainly by strong financial execution and an upbeat earnings outlook (raised guidance, strong margins and cash flow), partially offset by elevated leverage/negative equity and weak technical trend signals (price below key moving averages with negative MACD). Valuation is reasonable on P/E but lacks dividend support.
Positive Factors
Strong revenue growth & high margins
Sustained topline expansion paired with very high gross and operating margins indicates a durable, scalable business model. High margins support reinvestment, R&D and pricing power versus peers, and reduce breakeven risk if growth moderates, underpinning long-term cash generation potential.
Negative Factors
Elevated leverage & negative equity
High absolute debt and negative equity materially reduce financial flexibility and increase refinancing and interest-rate risk over the medium term. Continued dependence on strong operating cash flow to service obligations creates persistent solvency sensitivity if growth or margins weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth & high margins
Sustained topline expansion paired with very high gross and operating margins indicates a durable, scalable business model. High margins support reinvestment, R&D and pricing power versus peers, and reduce breakeven risk if growth moderates, underpinning long-term cash generation potential.
Read all positive factors
Fair Isaac (FICO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.20B
Dividend YieldN/A
Average Volume (3M)388.81K
Price to Earnings (P/E)23.8
Beta (1Y)1.35
Revenue Growth22.57%
EPS Growth34.99%
CountryUS
Employees3,718
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)12.50
Shares Outstanding23,722,134
10 Day Avg. Volume378,659
30 Day Avg. Volume388,807
Financial Highlights & Ratios
PEG Ratio1.89
Price to Book (P/B)-20.78
Price to Sales (P/S)18.22
P/FCF Ratio47.12
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue12.50
Enterprise Value/Gross Profit14.85
Enterprise Value/Ebitda24.25
Forecast
1Y Price Target
$1,671.92Price Target Upside55.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)41.34
Revenue Forecast (FY)$2.48B
Fair Isaac Business Overview & Revenue Model
Company Description
Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates th...
How the Company Makes Money
FICO primarily makes money through two major revenue streams: (1) Scores and (2) Software.
1) Scores (credit scoring royalties/fees): FICO licenses its credit scoring algorithms (including versions of the FICO Score) and earns revenue when scores...
Fair Isaac Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyFair Isaac Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted multiple clear strengths: robust revenue and earnings growth, raised full-year guidance, strong platform momentum (high ARR growth and very high platform NRR), exceptional free cash flow and record share repurchases, plus strategic product and pricing moves to accelerate adoption of FICO Score 10T. Offsetting items include declines in legacy/non-platform ARR and revenues, regulatory/competitive uncertainty tied to FHFA and VantageScore developments, modestly rising operating and interest expenses, and geographic revenue concentration. On balance, the positive operational and financial beats, platform traction, and upgraded guidance materially outweigh the challenges noted, though management maintains conservative volume assumptions and is monitoring regulatory timing.Positive Updates
Strong Top-Line and Earnings Growth
Q2 revenue of $692 million, up 39% year-over-year; GAAP net income $264 million, up 63% YoY; GAAP EPS $11.14, up 69% YoY; non-GAAP net income $297 million, up 54% YoY; non-GAAP EPS $12.50, up 60% YoY.
Negative Updates
Non-Platform Declines
Non-platform ARR declined 8% YoY to $440 million; non-platform revenues declined 12% YoY; non-platform NRR was 90%, below 100% and well under platform NRR (136%). Management cited migrations, end-of-life products and some usage declines as drivers.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line and Earnings Growth
Q2 revenue of $692 million, up 39% year-over-year; GAAP net income $264 million, up 63% YoY; GAAP EPS $11.14, up 69% YoY; non-GAAP net income $297 million, up 54% YoY; non-GAAP EPS $12.50, up 60% YoY.
Read all positive updates
Company Guidance
FICO raised full‑year fiscal 2026 guidance to $2.45 billion in revenue (up 23% year‑over‑year), GAAP net income of $825 million with GAAP EPS of $35.60 (up 27% and 34%, respectively) and non‑GAAP net income of $946 million with non‑GAAP EPS of $40.45 (up 29% and 35%), while reiterating conservative score‑volume assumptions and no anticipated share loss to competition; Q2 results that underpin the raise included $692 million revenue (+39% YoY), GAAP net income of $264 million (+63%) and GAAP EPS $11.14 (+69%), non‑GAAP net income $297 million (+54%) and non‑GAAP EPS $12.50 (+60%), Q2 free cash flow $214 million (trailing‑4‑quarter FCF $867 million, +28%), Q2 non‑GAAP operating margin 65% (up 712 bps YoY), total software ARR $789 million (+10% YoY) with platform ARR $349 million (44% of ARR, platform ARR growth +49%), Q2 platform ACV bookings $28 million (TTM $126 million, +36%), and continued capital returns including $605 million of buybacks in Q2 (484,000 shares at $1,251 avg) plus an additional $170 million (164,000 shares at $1,040 avg) since April 1; management expects modestly higher operating expense dollars into H2, an operating tax rate of 25–26% (effective ~24%), $272 million in cash, $3.64 billion total debt (5.5% weighted average rate) and modestly higher interest expense into the back half.Fair Isaac Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
28
Negative
Cash Flow
90
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.26B | 1.99B | 1.72B | 1.51B | 1.38B | 1.32B |
| Gross Profit | 1.90B | 1.64B | 1.37B | 1.20B | 1.08B | 984.07M |
| EBITDA | 1.16B | 951.19M | 761.49M | 663.81M | 560.74M | 538.83M |
| Net Income | 759.63M | 651.95M | 512.81M | 429.38M | 373.54M | 392.08M |
Balance Sheet | ||||||
| Total Assets | 2.05B | 1.87B | 1.72B | 1.58B | 1.44B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 219.42M | 134.14M | 150.67M | 136.78M | 133.20M | 195.35M |
| Total Debt | 3.66B | 3.07B | 2.24B | 1.90B | 1.91B | 1.33B |
| Total Liabilities | 4.15B | 3.61B | 2.68B | 2.26B | 2.24B | 1.68B |
| Stockholders Equity | -2.10B | -1.75B | -962.68M | -687.99M | -801.95M | -110.94M |
Cash Flow | ||||||
| Free Cash Flow | 892.68M | 769.88M | 607.41M | 464.68M | 503.42M | 416.25M |
| Operating Cash Flow | 907.33M | 778.81M | 632.96M | 468.92M | 509.45M | 423.82M |
| Investing Cash Flow | -44.98M | -43.72M | -27.99M | -15.95M | -5.67M | 137.85M |
| Financing Cash Flow | -791.85M | -750.33M | -592.92M | -455.00M | -547.16M | -523.57M |
Fair Isaac Technical Analysis
Neutral
1073.52
Price Trends
1212.71
Negative
1440.57
Negative
1504.18
Negative
Market Momentum
-50.83
Negative
46.45
Neutral
67.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FICO, the sentiment is Neutral. The current price of 1073.52 is above the 20-day moving average (MA) of 1049.64, below the 50-day MA of 1212.71, and below the 200-day MA of 1504.18, indicating a neutral trend. The MACD of -50.83 indicates Negative momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 67.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FICO.
Fair Isaac Risk Analysis
Fair Isaac disclosed 30 risk factors in its most recent earnings report. Fair Isaac reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fair Isaac Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.60B | 41.10 | 16.89% | ― | 18.47% | 14.21% | |
72 Outperform | $24.20B | 23.84 | -43.31% | ― | 22.57% | 34.99% | |
72 Outperform | $10.86B | 81.46 | 6.81% | ― | 18.20% | -62.03% | |
69 Neutral | $31.46B | 66.22 | 7.97% | ― | 13.28% | 31.76% | |
65 Neutral | $47.27B | 438.37 | 3.24% | ― | 27.68% | -43.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $18.66B | -250.38 | -13.32% | ― | 20.12% | 45.86% |
* Technology Sector Average
FICO
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Fair Isaac Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Fair Isaac Completes $1 Billion Senior Notes Offering
Positive
Mar 20, 2026
On March 20, 2026, Fair Isaac Corporation closed a $1.0 billion private offering of 6.250% senior unsecured notes due 2034 to qualified institutional buyers and certain non-U.S. investors. The notes, issued under an indenture with U.S. Bank Trust ...
Business Operations and StrategyPrivate Placements and Financing
Fair Isaac Announces $1 Billion Senior Notes Offering
Positive
Mar 12, 2026
On March 11, 2026, Fair Isaac Corp. priced a $1.0 billion private offering of 6.250% senior unsecured notes due 2034, sold at par to qualified institutional buyers under Rule 144A and to certain non‑U.S. investors under Regulation S. The com...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Fair Isaac Launches $1 Billion Senior Notes Offering
Positive
Mar 11, 2026
On March 11, 2026, FICO announced it had begun a $1.0 billion private offering of senior unsecured notes due 2034 to qualified institutional buyers in the U.S. and to non-U.S. investors under applicable securities exemptions. The company plans to ...
Executive/Board ChangesShareholder Meetings
Fair Isaac Shareholders Approve Governance Changes and Directors
Positive
Mar 5, 2026
At its annual meeting held on March 4, 2026, Fair Isaac shareholders elected all eight board nominees, confirming the existing slate of directors with strong majorities and solid turnout from the 23.8 million shares eligible to vote. Investors als...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.