Fair Isaac (FICO) Earnings Date & Reports

Key Takeaways

• Fair Isaac (FICO) reported fourth quarter fiscal 2026 (quarter ended September 30, 2026) revenue of $657.0 million, up 27% year over year and slightly above the consensus estimate of about $651.7 million.
• GAAP diluted earnings per share (EPS) came in at $8.12, below the $8.89 consensus, while non-GAAP diluted EPS of $11.10 exceeded estimates by a wide margin.
• Results were shaped by three one-time items: a $65 million antitrust settlement accrual, a $27 million restructuring charge, and a $48 million non-operating gain on an equity investment sale.
• The Scores segment led the way, with revenue up 33% to $413.8 million, driven by a 39% jump in business-to-business (B2B) revenue on higher mortgage origination score unit pricing.
• Management declined to provide fiscal 2027 guidance, pointing to an uncertain mortgage market and pricing programs still being finalized.
• For more context on the company, explore its Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
• To discover more data-driven market ideas, explore Trending AI Robots.

Earnings Context and Why It Matters

Fair Isaac Corporation, best known for its widely used FICO credit scores, occupies a unique position at the intersection of consumer credit and enterprise analytics software. Its quarterly results offer a read on mortgage origination demand, consumer credit activity, and the health of lending markets more broadly. The fourth quarter of fiscal 2026 carries extra weight because it completes the company's full fiscal year and arrives during a period of elevated interest rates and affordability pressures that have weighed on mortgage volume. Investors closely track the Scores business, where pricing power has offset weaker unit volumes, and the Software segment's shift toward a higher-growth platform model. The quarter's unusual mix of settlement, restructuring, and investment gains makes the underlying operating trend especially important to interpret.

Reported Results

Fair Isaac reported fourth quarter fiscal 2026 revenue of $657.0 million, a 27% increase from $515.8 million in the prior-year period and above the consensus estimate of roughly $651.7 million. GAAP net income totaled $175.0 million, or $8.12 per diluted share, compared with $155.0 million, or $6.42 per share, a year earlier. Non-GAAP net income reached $239.3 million, or $11.10 per diluted share, versus $187.0 million, or $7.74 per share, in the prior year.

The gap between GAAP and non-GAAP EPS reflects three significant items. A $65 million accrual was recorded for a proposed settlement of antitrust class action lawsuits tied to the Scores business, and a $27 million restructuring charge was taken in connection with a workforce reduction plan. These were partially offset by a $48 million non-operating gain on the sale of a minority equity investment. Excluding these items, non-GAAP EPS of $11.10 came in well above the roughly $8.89 consensus.

Segment results showed a clear divergence. Scores revenue rose 33% to $413.8 million, with B2B revenue up 39% on higher mortgage origination score unit pricing, partially offset by lower origination volume. Software revenue grew 19% to $243.2 million, and Software Annual Recurring Revenue (ARR) rose 14% year over year, driven by a 72% increase in platform ARR.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to surface trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. For investors monitoring earnings-driven moves like Fair Isaac's, it offers a structured way to compare peers and identify setups. Explore the AI Screener to put these capabilities to work in your own research.

Market Reaction and Investor Sentiment

The market's initial response was cautious. Shares of Fair Isaac declined in after-hours trading following the November 4 release, as investors weighed the lower GAAP EPS figure, the antitrust settlement accrual, and the absence of fiscal 2027 guidance against otherwise strong revenue growth and a substantial non-GAAP EPS beat. The mixed nature of the report—strong top-line momentum and powerful Scores pricing offset by one-time charges and lingering mortgage uncertainty—left sentiment divided heading into the company's earnings call.

Forward Outlook and Key Factors to Monitor

Looking ahead, several factors will shape investor expectations. First is the mortgage environment. Fair Isaac is deliberately transitioning toward bespoke mortgage origination pricing tailored to individual customers, including its FICO Preferred Program. Because many of these agreements are still being finalized, and because elevated interest rates and affordability challenges continue to pressure origination volumes, management declined to issue fiscal 2027 guidance. This leaves investors with less visibility into the durability of Scores pricing gains.

Second, the Software segment's platform transition remains a key watch item. Platform ARR grew 72% year over year, but non-platform ARR declined 18%, reflecting an ongoing strategic shift. Investors will monitor whether platform growth can continue to offset the non-platform decline and support the segment's overall 14% ARR growth.

Finally, the antitrust settlement accrual and the restructuring program bear watching. The proposed settlement, if finalized, could resolve a long-standing legal overhang, while the workforce reduction plan may reshape near-term expense levels. Free cash flow, which reached $284.3 million for the quarter, up from $210.8 million a year earlier, offers evidence of strong cash generation despite these pressures. Together, these signals point to a company with notable momentum and a handful of unresolved items that could influence results in the quarters ahead.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations