Fair Isaac (FICO)

Information Technology · $15.4B market cap · SEC CIK 0000814547

Next reports on Jan 26, 2027, with analysts expecting $9.69 in earnings per share.

52-week range $586.05 to $1,859. 61% below its 52-week high and 25% above its low.

The case for FICO

• Revenue up 27.3% on the year.
• Cheap for its growth: 18.4× earnings, where 21% a year of growth would justify about 40×.
• Generated $1.1B of free cash flow in FY2026, 42% of revenue.
• 33% of revenue drops through to net profit.
• Earnings per share up 36.8%.
• Earns 42% a year on everything it owns (return on assets).

The case against

• Down 58.4% over the past year.
• Owes more than it owns: shareholder equity is −$3.9B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
• Current liabilities exceed current assets (ratio 0.99).
• Near the bottom of its 52-week range, 61% below the high. Falling prices usually have a reason; find it first.
• Long-term debt of $4.9B against $218M of cash.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from Fair Isaac's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Fair Isaac says it does

Fair Isaac Corporation (NYSE: FICO) (together with its consolidated subsidiaries, the “Company,” which may also be referred to in this report as “we,” “us,” “our,” and “FICO”) is a global analytics software leader. We were founded in 1956 on the premise that data, used intelligently, can improve business decisions. Today, FICO’s software and the widely used FICO ® Score operationalize analytics, enabling thousands of businesses in more than 70 countries to uncover new opportunities, make timely decisions that matter, and execute them at scale. Most leading banks and credit card issuers rely on our solutions, as do insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries. We also serve consumers through online services that enable people to access and understand their FICO Scores — the standard measure of consumer credit risk in the United…

Risk factors FICO lists in its 10-K

• We are subject to significant competition in the markets in which we operate, and our products and pricing strategies, and those of our competitors, could decrease our product sales and market share
• The ability to use a competing credit score model in the U.S. mortgage market, including by Fannie Mae and Freddie Mac, has, and could continue to have, a material adverse effect on our stock price, and if use of the FICO
• Score in the U.S. mortgage market were to cease or decline, it could have a material adverse effect on our revenues, results of operations, and stock price
• We derive a substantial portion of our revenues from a small number of products and services, and if the market does not continue to accept these products and services, our revenues may decline
• We may not be successful in executing the business strategy for our Software segment, which could cause our growth prospects and results of operations to suffer
• We rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed
• If we fail to keep up with rapidly changing technologies, our products could become less competitive or obsolete
• Our reengineering efforts may adversely affect our growth prospects and profitability
• If we are unable to access new markets or develop new sales and distribution channels, our business and growth prospects could be adversely affected
• Our acquisition activities may disrupt our ongoing business and may involve increased expenses, and we may not realize the financial and strategic goals contemplated at the time of a transaction
• There can be no assurance that strategic divestitures will provide business benefits
• Our revenues, results of operations and overall financial performance may be negatively impacted by health epidemics or other disease outbreaks
• The failure to recruit and retain qualified personnel could hinder our ability to successfully manage our business
• The failure to obtain certain forms of data from our customers or others for our use in product development could harm our business
• Increased industry and regulatory focus on U.S. residential mortgage closing costs may limit our ability to implement price changes for FICO
• If we are subject to infringement claims, it could harm our business
• Our operations outside the U.S. subject us to additional risks that may harm our business, financial condition, or results of operations
• Material adverse developments in global economic conditions, or the occurrence of significant geopolitical or other world events, could affect demand for our products and services and harm our business
• Our products have long and variable sales cycles. If we do not accurately predict these cycles, we may not forecast our financial results accurately, and our stock price could be adversely affected
• Our stock price has been subject to fluctuations, and may continue to fluctuate, or decline, regardless of our operating performance
• If we experience changes in tax laws or adverse outcomes resulting from examination of our income tax returns, our results of operations could be adversely affected

Filings

Other Information Technology companies