We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Fair Isaac (FICO) Up 5.8% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Fair Isaac (FICO - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Fair Isaac due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Fair Isaac Corporation before we dive into how investors and analysts have reacted as of late.
Fair Isaac Q4 Earnings Top Estimates, Revenues Rise Y/Y
Fair Isaac reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, which surpassed the Zacks Consensus Estimate by 5.45% and jumped 18.3% year over year.
Revenues of $515.8 million beat the consensus mark by 0.78% and increased 13.6% year over year. The Americas, EMEA, and Asia Pacific contributed 87%, 8% and 5% to total revenues, respectively. Scores (60.4% of revenues) increased 25% year over year to $311.6 million.
FICO’s Top-Line Details
Software revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, declined 0.2% year over year to $204.2 million.
Software Annual Recurring Revenues (ARR) increased 4% year over year, consisting of 16% platform ARR growth but a 2% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 102% in the fiscal fourth quarter, with platform software at 112% and non-platform software at 97%. On-premises and SaaS Software (35.4% of revenues) increased 0.4% year over year to $182.4 million. Professional services (4.2% of revenues) were $21.8 million, down 4.8% year over year.
Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 29% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 8% year over year due to increased revenues from myFICO.com business and indirect channel partners.
Mortgage originations revenues rose 55% year over year. Auto originations revenues increased 24% year over year. Credit card, personal loan, and other origination revenues are up 7% year over year.
FICO’s Operating Details
Research and development expenses, as a percentage of revenues, expanded 10 basis points (bps) on a year-over-year basis to 9.9%.
Selling, general, and administrative expenses, as a percentage of revenues, decreased 270 bps year over year to 24.3%.
Non-GAAP Operating margin was 54% in the fiscal fourth quarter of 2025 compared with 52% in the year-ago quarter.
Adjusted EBITDA increased 18.3% year over year to $286.6 million in the reported quarter. The adjusted EBITDA margin in the fiscal fourth quarter of 2025 was 55.6% compared with 53.4% in the fiscal fourth quarter of 2024.
FICO’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, FICO had $134 million in cash and cash equivalents, and total debt was $3.06 billion.
Cash flow from operations was $223.6 million in the fiscal fourth quarter compared with $286.2 million in the prior quarter. Free cash flow was $210.8 million for the reported quarter compared with $276.2 million reported in the prior quarter.
In the fiscal fourth quarter, FICO repurchased 358K shares.
FICO Reiterates Fiscal 2026 Guidance
For fiscal 2026, FICO anticipates revenues of $2.35 billion.
Non-GAAP earnings are projected to be $38.17 per share.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Fair Isaac has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Fair Isaac has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Fair Isaac belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, DXC Technology Company. (DXC - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
DXC Technology reported revenues of $3.16 billion in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $0.84 for the same period compares with $0.93 a year ago.
DXC Technology is expected to post earnings of $0.85 per share for the current quarter, representing a year-over-year change of -7.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
DXC Technology has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Fair Isaac (FICO) Up 5.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Fair Isaac (FICO - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Fair Isaac due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Fair Isaac Corporation before we dive into how investors and analysts have reacted as of late.
Fair Isaac Q4 Earnings Top Estimates, Revenues Rise Y/Y
Fair Isaac reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, which surpassed the Zacks Consensus Estimate by 5.45% and jumped 18.3% year over year.
Revenues of $515.8 million beat the consensus mark by 0.78% and increased 13.6% year over year. The Americas, EMEA, and Asia Pacific contributed 87%, 8% and 5% to total revenues, respectively. Scores (60.4% of revenues) increased 25% year over year to $311.6 million.
FICO’s Top-Line Details
Software revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, declined 0.2% year over year to $204.2 million.
Software Annual Recurring Revenues (ARR) increased 4% year over year, consisting of 16% platform ARR growth but a 2% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 102% in the fiscal fourth quarter, with platform software at 112% and non-platform software at 97%. On-premises and SaaS Software (35.4% of revenues) increased 0.4% year over year to $182.4 million. Professional services (4.2% of revenues) were $21.8 million, down 4.8% year over year.
Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 29% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 8% year over year due to increased revenues from myFICO.com business and indirect channel partners.
Mortgage originations revenues rose 55% year over year. Auto originations revenues increased 24% year over year. Credit card, personal loan, and other origination revenues are up 7% year over year.
FICO’s Operating Details
Research and development expenses, as a percentage of revenues, expanded 10 basis points (bps) on a year-over-year basis to 9.9%.
Selling, general, and administrative expenses, as a percentage of revenues, decreased 270 bps year over year to 24.3%.
Non-GAAP Operating margin was 54% in the fiscal fourth quarter of 2025 compared with 52% in the year-ago quarter.
Adjusted EBITDA increased 18.3% year over year to $286.6 million in the reported quarter. The adjusted EBITDA margin in the fiscal fourth quarter of 2025 was 55.6% compared with 53.4% in the fiscal fourth quarter of 2024.
FICO’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, FICO had $134 million in cash and cash equivalents, and total debt was $3.06 billion.
Cash flow from operations was $223.6 million in the fiscal fourth quarter compared with $286.2 million in the prior quarter. Free cash flow was $210.8 million for the reported quarter compared with $276.2 million reported in the prior quarter.
In the fiscal fourth quarter, FICO repurchased 358K shares.
FICO Reiterates Fiscal 2026 Guidance
For fiscal 2026, FICO anticipates revenues of $2.35 billion.
Non-GAAP earnings are projected to be $38.17 per share.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Fair Isaac has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Fair Isaac has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Fair Isaac belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, DXC Technology Company. (DXC - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
DXC Technology reported revenues of $3.16 billion in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $0.84 for the same period compares with $0.93 a year ago.
DXC Technology is expected to post earnings of $0.85 per share for the current quarter, representing a year-over-year change of -7.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
DXC Technology has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.