Fair Isaac Reports Q1 2026 Earnings Beat but Shares Dip
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Strong Earnings Report: Fair Isaac achieved an adjusted EPS of $7.33 in Q1 2026, surpassing the analyst estimate of $7.08, although it decreased from $7.74 in the previous quarter, indicating fluctuations in profitability.
- Revenue Growth: The company reported revenues of $512 million for the quarter, exceeding the market expectation of $502 million, despite a slight decline from $516 million in the prior quarter, reflecting changing market demand.
- Significant Score Revenue Increase: Score revenues surged 29% year-over-year to $304.5 million, driven by increased mortgage origination volumes and higher unit prices, showcasing the company's strong performance in this segment.
- Operating Expense Control: Total operating expenses for Q1 were $277.9 million, down from $278.6 million in Q4 but up from $260.4 million in the same quarter last year, highlighting challenges in cost management.
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Analyst Views on FICO
Wall Street analysts forecast FICO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FICO is 2070 USD with a low forecast of 1700 USD and a high forecast of 2400 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 1525.670
Low
1700
Averages
2070
High
2400
Current: 1525.670
Low
1700
Averages
2070
High
2400
About FICO
Fair Isaac Corporation is an applied analytics software company. The Company is focused on using predictive analytics and data science to improve operational decisions. The Company operates through two segments: Scores and Software. The Scores segment includes the Company's business-to-business scoring solutions and services which give its clients access to predictive credit and other scores. This segment includes its business-to-consumer scoring solutions, including its myFICO.com subscription offerings. The Company’s Software segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process, such as account origination, customer management, customer engagement, fraud detection and marketing as well as associated professional services. This segment includes FICO Platform, a modular software offering designed to support advanced analytic and decision use cases as well as stand-alone analytic and decisioning software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fair Isaac Corporation Reports Strong Q1 2026 Earnings Growth
- Significant Revenue Growth: Fair Isaac achieved Q1 2026 revenues of $512 million, a 16% year-over-year increase, demonstrating the company's strong market performance and sustained growth potential.
- Net Income Improvement: GAAP net income reached $158 million, up 4% from last year, with earnings per share at $6.61, reflecting a steady enhancement in the company's profitability.
- Strategic Partnership Expansion: The company added four new strategic resellers to its Mortgage Direct Licensing Program, expected to drive over $377 billion in annual originations, further solidifying its market position.
- Accelerated Platform Revenue: The Software segment's annual recurring revenue (ARR) grew by 33% to $303 million, indicating significant progress in the company's platform-driven business model and enhancing future growth potential.
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FICO Recognized as Leader in Decision Intelligence Platforms by Gartner
- Industry Leadership: FICO has been named a Leader in the 2026 Gartner Magic Quadrant for Decision Intelligence Platforms, reflecting its outstanding performance in both Ability to Execute and Completeness of Vision, further solidifying its leadership in the global analytics software market.
- Innovation-Driven: Since the launch of the FICO Platform in 2019, it has enabled enterprises to make faster, smarter decisions through the integration of dynamic, real-time customer profiles, enhancing efficiency and effectiveness in customer lifecycle management and driving continuous business innovation.
- Market Impact: FICO's decision intelligence solutions empower businesses to make real-time decisions at scale, enhancing customer decision-making capabilities and market responsiveness, thereby increasing competitive advantage and market share.
- Technological Investment: FICO integrates advanced AI technologies across the decision lifecycle to ensure its products meet regulatory requirements and possess robust governance frameworks, demonstrating a strong balance between technological innovation and market demand.
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