Fair Isaac Corporation

FICO · NYSE · USD

Analysis

Last 4 earnings calls · through Q3 FY2026

FICO's growth has shifted from selling more scores to charging more for each one, and its software platform has just overtaken the products it is replacing. Both now hinge on whether lenders keep paying up while a free rival score gets a foothold.How much of Scores growth is price versus mortgage volume?

Growth is coming from price, not more mortgages.
Mortgage volume grew only low single digits in Q3 FY2026 while mortgage score revenue nearly doubled. Management still sees a wide gap between its price and the score's value, so growth now rests on lenders accepting annual increases.
The platform is now the bigger half of software.
Platform ARR passed non-platform for the first time in Q3 FY2026, up 62% while older products shrank, and retention on the platform ran at 148%. Retiring old products on purpose will hold reported software revenue back.How much of platform ARR growth came from migrating customers?
The direct license program is still not live, months late.
The program still needs GSE certification months after management expected it live, and the low up-front price meant to make 10T the default only reaches lenders through that channel, so the pricing change has not reached the market.What is still blocking the direct license program from going live?

Bullish

Mortgage score pricing power
The bull case rests on pricing power: FICO keeps raising what it charges for the mortgage score because lenders have no substitute, so revenue rises even in flat years.
Platform recurring revenue growth
Software is the second leg: bookings and platform recurring revenue accelerate as existing bank customers add use cases, and management expects margins to follow volume.
Predictive lead over Vantage
FICO argues its newest score is measurably more predictive than Vantage and independent actuarial work now supports that, which is the strongest reason lenders stay.

Bearish

Score shopping under lender choice
The bear case is that lender choice turns scores into a price comparison, with originators pulling both and submitting whichever helps the borrower, capping FICO's share.
Direct license program delays
The direct license program has slipped for months waiting on GSE certification, so the performance pricing model meant to widen monetization has earned no revenue yet.
Debt-funded share repurchases
Buybacks have been funded with new borrowing, lifting net debt sharply, and management has paused repurchases to pay that debt down before returning more capital.

See the full bull & bear case

PoliticiansInstitutionsInsiders

Politician	Transaction	Amount	Traded	Filed
Donald Trump Republican · Executive	Sale	≥$1K	Aug 24	Oct 8
Donald Trump Republican · Executive	Sale	≥$15K	Jun 24	Aug 22
Donald Trump Republican · Executive	Purchase	≥$1K	Jun 23	Aug 22
Donald Trump Republican · Executive	Purchase	≥$15K	May 22	Jul 1
Donald Trump Republican · Executive	Purchase	≥$15K	May 18	Jul 1

Congressional trading data provided by QuiverQuant

Product segmentsGeography

FY2025 · USD

How Fair Isaac turned $2.0B of revenue into $924.9M of operating income.

	Revenue
Scores	$1.2B	▲ 27.07% YoY
Applications	$822.3M
Total revenue	$2.0B
Gross profit	$1.6B	82.2%
Operating income	$924.9M	46.5%

Analyst consensus

Buy21 analysts

Bearish · 0 · Hold · 5 · Bullish · 16

Earnings history

	EPS	Estimate
Q4 2024	$6.54	$6.39	Beat
Q1 2025	$5.79	$6.09	Miss
Q2 2025	$7.81	$7.48	Beat
Q3 2025	$8.57	$7.71	Beat
Q4 2025	$7.74	$7.32	Beat
Q1 2026	$7.33	$7.08	Beat
Q2 2026	$12.50	$10.89	Beat
Q3 2026	$12.18	$11.76	Beat

Peers

Company overview

IPO dateJul 22, 1987

CEOWilliam J. Lansing

Employees3,876

SectorTechnology

IndustrySoftware - Application

CountryUS

ExchangeNew York Stock Exchange

Websitewww.fico.com

Fair Isaac Corporation, also known as FICO, delivers advanced analytics, software solutions, and data management services designed to help businesses optimize, automate, and interconnect their crucial decision-making processes. These offerings reach clients across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. The company operates through two main divisions: Software and Scores. The Software segment provides pre-configured decision management solutions catering to a variety of business challenges and operations, including marketing strategy, account creation, customer relations, engagement, fraud detection, financial crime compliance, and debt collection, alongside related professional services. Key among its offerings is the FICO Platform, a modular software suite built to support sophisticated analytical and decision-making applications. This segment also supplies stand-alone analytical and decisioning software that customers can customize for a broad spectrum of business needs. Conversely, the Scores segment offers both business-to-business (B2B) and business-to-consumer (B2C) solutions. Its B2B scoring services empower corporate clients with analytics that can be integrated directly into their transaction flows and decision frameworks. For individual consumers, the segment provides B2C scoring via offerings such as myFICO.com subscriptions. FICO markets its diverse product and service portfolio primarily through its dedicated direct sales force, various indirect distribution channels, and its online presence. Established in 1956 as Fair Isaac & Company, Inc., the company officially adopted the name Fair Isaac Corporation in July 1992 and maintains its headquarters in Bozeman, Montana.

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