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Fair Isaac Q1 Earnings Top Estimates, Strong Scores Drive Up Sales Y/Y
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Key Takeaways
Fair Isaac posted Q1 non-GAAP EPS of $7.33, beating estimates as revenue climbed 16.6% year over year.
FICO's Scores segment rose 29.8% Y/Y, led by sharp growth in mortgage, auto, and credit-related originations.
Fair Isaac expanded margins as operating leverage improved, with non-GAAP operating margin rising to 45.7%.
Fair Isaac (FICO - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of $7.33 per share, which surpassed the Zacks Consensus Estimate by 5.54% and jumped 26.6% year over year.
Revenues of $512 million beat the consensus mark by 2.76% and increased 16.6% year over year. The Americas, EMEA, and Asia Pacific contributed 88%, 8%, and 4% to total revenues, respectively. Scores (59.5% of revenues) increased 29.2% year over year to $304.5 million.
FICO’s Top-Line Details
Software revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, increased 1.5% year over year to $207.4 million.
Software Annual Recurring Revenues (ARR) increased 5% year over year to $766 million, consisting of 33% platform ARR growth but an 8% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 103% in the fiscal first quarter, with platform software at 122% and non-platform software at 91%. On-premises and SaaS Software (36.8% of revenues) increased 1.2% year over year to $188.2 million. Professional services (3.8% of revenues) were $19.2 million, up 5% year over year.
Fair Isaac Corporation Price, Consensus and EPS Surprise
Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 36% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 5% year over year due to increased revenues from myFICO.com business and indirect channel partners.
Mortgage originations revenues rose 60% year over year. Auto originations revenues increased 21% year over year. Credit card, personal loan, and other origination revenues increased 10% year over year.
FICO’s Operating Details
Research and development expenses, as a percentage of revenues, contracted 50 basis points (bps) on a year-over-year basis to 9.7%.
Selling, general, and administrative expenses, as a percentage of revenues, decreased 160 bps year over year to 27.5%.
Non-GAAP Operating margin was 45.7% in the fiscal first quarter of 2026 compared with 40.8% in the year-ago quarter.
Adjusted EBITDA increased 26.5% year over year to $282.2 million in the reported quarter. The adjusted EBITDA margin in the fiscal first quarter of 2026 was 55.1% compared with 50.7% in the fiscal first quarter of 2025.
FICO’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, FICO had $162 million in cash and cash equivalents compared with $134 million as of Sept. 30, 2025. Total debt was $3.19 billion.
Cash flow from operations was $174 million in the fiscal first quarter compared with $223.6 million in the prior quarter. Free cash flow was $165.3 million in the reported quarter compared with $210.8 million reported in the prior quarter.
In the fiscal first quarter, FICO repurchased 95K 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.
Shares of Arista Networks have gained 27.6% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12
Shares of Advanced Energy have gained 85.4% in the trailing six-month period. Advanced Energy is slated to report fourth-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 103.2% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.
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Fair Isaac Q1 Earnings Top Estimates, Strong Scores Drive Up Sales Y/Y
Key Takeaways
Fair Isaac (FICO - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of $7.33 per share, which surpassed the Zacks Consensus Estimate by 5.54% and jumped 26.6% year over year.
Revenues of $512 million beat the consensus mark by 2.76% and increased 16.6% year over year. The Americas, EMEA, and Asia Pacific contributed 88%, 8%, and 4% to total revenues, respectively. Scores (59.5% of revenues) increased 29.2% year over year to $304.5 million.
FICO’s Top-Line Details
Software revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, increased 1.5% year over year to $207.4 million.
Software Annual Recurring Revenues (ARR) increased 5% year over year to $766 million, consisting of 33% platform ARR growth but an 8% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 103% in the fiscal first quarter, with platform software at 122% and non-platform software at 91%. On-premises and SaaS Software (36.8% of revenues) increased 1.2% year over year to $188.2 million. Professional services (3.8% of revenues) were $19.2 million, up 5% year over year.
Fair Isaac Corporation Price, Consensus and EPS Surprise
Fair Isaac Corporation price-consensus-eps-surprise-chart | Fair Isaac Corporation Quote
Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 36% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 5% year over year due to increased revenues from myFICO.com business and indirect channel partners.
Mortgage originations revenues rose 60% year over year. Auto originations revenues increased 21% year over year. Credit card, personal loan, and other origination revenues increased 10% year over year.
FICO’s Operating Details
Research and development expenses, as a percentage of revenues, contracted 50 basis points (bps) on a year-over-year basis to 9.7%.
Selling, general, and administrative expenses, as a percentage of revenues, decreased 160 bps year over year to 27.5%.
Non-GAAP Operating margin was 45.7% in the fiscal first quarter of 2026 compared with 40.8% in the year-ago quarter.
Adjusted EBITDA increased 26.5% year over year to $282.2 million in the reported quarter. The adjusted EBITDA margin in the fiscal first quarter of 2026 was 55.1% compared with 50.7% in the fiscal first quarter of 2025.
FICO’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, FICO had $162 million in cash and cash equivalents compared with $134 million as of Sept. 30, 2025. Total debt was $3.19 billion.
Cash flow from operations was $174 million in the fiscal first quarter compared with $223.6 million in the prior quarter. Free cash flow was $165.3 million in the reported quarter compared with $210.8 million reported in the prior quarter.
In the fiscal first quarter, FICO repurchased 95K 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.
FICO’s Zacks Rank & Other Stocks to Consider
Currently, FICO carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks (ANET - Free Report) , Advanced Energy (AEIS - Free Report) , and Amkor Technology (AMKR - Free Report) . While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 27.6% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12
Shares of Advanced Energy have gained 85.4% in the trailing six-month period. Advanced Energy is slated to report fourth-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 103.2% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.