It has been about a month since the last earnings report for Fair Isaac (FICO Quick QuoteFICO - Free Report) . Shares have added about 22.5% 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 drivers for Fair Isaac Corporation before we dive into how investors and analysts have reacted as of late.

Fair Isaac Q2 Earnings Beat Estimates on Scores, Revenue Up Y/Y

Fair Isaac posted a strong second-quarter fiscal 2026, with non-GAAP earnings of $12.5 per share, beating the Zacks Consensus Estimate by 13.33% and rising 60.1% from the year-ago quarter. 

Revenues were $692 million, beating the consensus mark by 10.64% and increasing 38.7% year over year.

Results reflected sharp momentum in credit-related activity, highlighted by a 127% year-over-year jump in mortgage originations revenue, alongside continued execution in the company’s decisioning software strategy.

FICO Benefits From Scores Business

Scores segment revenue rose 60% year over year to $475.0 million, underscoring the durability of FICO’s franchise in U.S. credit markets. Growth was led by the business-to-business channel, where revenue increased 72% from the prior-year period, benefiting from higher mortgage origination scores, unit pricing and higher mortgage origination volumes.

Business-to-consumer Scores revenue increased 5% year over year, supported mainly by indirect channel partners. Within originations, auto revenue grew 13%, and credit card, personal loan, and other originations increased 6% year over year compared with the year-ago quarter, indicating broader-based demand beyond mortgages. Mortgage originations revenues rose 127% year over year.

Fair Isaac Gains From Software Platform Revenue

Software revenue increased 7% year over year to $216.7 million, supported by continued penetration of the FICO Platform. Platform revenue climbed 54% from the prior-year quarter, while non-platform revenue declined 12%, largely due to migrations.

Total software annual recurring revenue (ARR) was $789 million, up 10% year over year, with platform ARR of $349 million rising 49% and representing 44% of total ARR. Dollar-based net retention rate was 109%, including 136% for platform and 90% for non-platform, reflecting expansion in platform use cases and volumes even as legacy products face headwinds.

FICO’s Operating Details

Research and development expenses, as a percentage of revenues, contracted 120 basis points (bps) on a year-over-year basis to 7.8%. Selling, general, and administrative expenses, as a percentage of revenues, decreased 330 bps year over year to 20.8%.

Non-GAAP operating margin expanded to 65% from 58% in the year-ago period, as revenue growth outpaced incremental spending.

Adjusted EBITDA increased 55.8% year over year to $448.5 million in the reported quarter. The adjusted EBITDA margin in the fiscal second quarter of 2026 was 64.8% compared with 57.7% in the fiscal second quarter of 2025.

Fair Isaac’s Balance Sheet and Cash Flow

As of March 31, 2026, FICO had $219.4 million in cash and cash equivalents compared with $162 million as of Dec. 31, 2025. Total debt was $3.64 billion. 

Cash flow from operations was $223 million in the fiscal second quarter compared with $174 million in the prior quarter. Free cash flow was $214.3 million in the reported quarter compared with $165.3 million reported in the prior quarter.

FICO continued to prioritize capital returns. The company repurchased 484,000 shares for $605 million at an average price of $1,251 per share, cited as its largest quarterly repurchase in dollar terms.

FICO Raises Full-Year 2026 Outlook After Strong First Half

Reflecting the first-half performance, management raised full-year fiscal 2026 guidance. Revenue is now expected to be $2.45 billion, up from the prior view of $2.35 billion.

On a non-GAAP basis, earnings are projected to be $40.45 per share.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

VGM Scores

Currently, Fair Isaac has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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, Infosys (INFY Quick QuoteINFY - Free Report) , has gained 0.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Infosys reported revenues of $5.04 billion in the last reported quarter, representing a year-over-year change of +6.6%. EPS of $0.23 for the same period compares with $0.20 a year ago.

For the current quarter, Infosys is expected to post earnings of $0.21 per share, indicating a change of +10.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.1% over the last 30 days.

Infosys has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.