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Caisse de depot et placement du Quebec acquired a new stake in shares of Fair Isaac Corporation (NYSE:FICO – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 436 shares of the technology company’s stock, valued at approximately $521,000.

A number of other hedge funds also recently made changes to their positions in the stock. Gallagher Fiduciary Advisors LLC purchased a new position in Fair Isaac in the second quarter worth $269,000. Man Group plc bought a new position in Fair Isaac in the second quarter valued at $7,949,000. Councilmark Asset Management LLC purchased a new stake in Fair Isaac during the second quarter valued at about $540,000. Roberts Glore & Co. Inc. IL purchased a new stake in Fair Isaac during the second quarter valued at about $479,000. Finally, Jupiter Topco LLC bought a new stake in Fair Isaac during the second quarter worth about $33,080,000. 85.75% of the stock is owned by institutional investors.

Fair Isaac Stock Up 0.1% NYSE FICO opened at $1,154.38 on Monday. The company has a 50-day simple moving average of $1,174.41 and a two-hundred day simple moving average of $1,174.19. Fair Isaac Corporation has a 12-month low of $870.01 and a 12-month high of $1,998.01. The firm has a market cap of $24.93 billion, a price-to-earnings ratio of 33.34, a PEG ratio of 1.04 and a beta of 1.30.

Fair Isaac (NYSE:FICO – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The technology company reported $12.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $11.76 by $0.42. The firm had revenue of $674.19 million for the quarter, compared to analysts’ expectations of $679.17 million. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.The company’s revenue for the quarter was up 25.7% compared to the same quarter last year. During the same period last year, the firm earned $8.57 earnings per share. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. Equities analysts expect that Fair Isaac Corporation will post 37.37 earnings per share for the current fiscal year. Insider Transactions at Fair Isaac In related news, Director Eva Manolis sold 967 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $1,400.00, for a total transaction of $1,353,800.00. Following the transaction, the director directly owned 498 shares in the company, valued at $697,200. This trade represents a 66.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.02% of the stock is currently owned by insiders.

Analyst Ratings Changes A number of equities analysts have recently issued reports on the company. Royal Bank Of Canada cut their price objective on Fair Isaac from $2,400.00 to $1,525.00 and set an “outperform” rating for the company in a report on Thursday, July 30th. Jefferies Financial Group set a $1,675.00 price objective on Fair Isaac in a report on Monday, August 3rd. Bank of America dropped their target price on Fair Isaac from $1,550.00 to $1,400.00 and set a “buy” rating for the company in a research report on Tuesday, May 19th. Wall Street Zen lowered Fair Isaac from a “buy” rating to a “hold” rating in a research note on Sunday, June 28th. Finally, Barclays reduced their price target on shares of Fair Isaac from $1,950.00 to $1,700.00 and set an “overweight” rating on the stock in a research report on Monday, August 10th. Eleven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,553.69.

Read Our Latest Stock Report on Fair Isaac

Fair Isaac Profile (Free Report)

Fair Isaac Corporation, commonly known as FICO, is a data analytics and software company best known for its FICO Score, a widely used credit-scoring system that helps lenders assess consumer credit risk. Founded in 1956 by Bill Fair and Earl Isaac, the company has evolved from its origins in statistical credit scoring to a broader focus on predictive analytics, decision management and artificial intelligence-driven solutions for financial services and other industries. FICO is headquartered in San Jose, California, and operates globally, serving clients across North America, Latin America, Europe, the Middle East, Africa and the Asia-Pacific region.

FICO’s product portfolio centers on analytics and decisioning technologies.

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It has been about a month since the last earnings report for Fair Isaac (FICO - Free Report) . Shares have added about 1.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Fair Isaac due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Fair Isaac Q3 Earnings Beat Estimates on Scores, Revenues Up Y/YFair Isaac Corporation reported third-quarter fiscal 2026 non-GAAP earnings of $12.18 per share, up 42.1% year over year and 1.33% above the Zacks Consensus Estimate.

Revenues rose 25.7% to $674.19 million but missed the consensus mark by 0.75%. The quarter benefited from strong business-to-business Scores demand, led by mortgage pricing, while software growth remained modest. Software annual recurring revenues reached $816 million, up 10% year over year, as platform ARR advanced 62%.

FICO Scores Segment Extends LeadScores revenues increased 41% year over year to $458.9 million. Business-to-business revenues climbed 49% year over year, mainly due to a higher mortgage origination score unit price, while business-to-consumer revenues grew 5% year over year on higher royalties from scores sold indirectly through credit reporting agencies.

Mortgage origination revenues surged 97% year over year, with volumes rising in the low-single digits. Mortgage originations accounted for 71% of B2B revenues and 62% of total Scores revenues. Auto originations revenues increased 15% year over year, while credit card, personal loan, and other originations revenues rose 9%.

The FICO Score 10T Adopter Program expanded to 70 lenders and represented $587 billion in eligible annual originations and $1.87 trillion in eligible annual servicing. FICO also signed direct licensing agreements with resellers representing about 60% of U.S. mortgage volume and remained in discussions that could bring coverage closer to 90%.

Fair Isaac Software Mix Shifts to PlatformSoftware revenues edged up 2% year over year to $215.3 million. On a year-over-year basis, SaaS revenues grew 21%, while on-premises revenues declined 16% and professional services revenues fell 24%. Excluding point-in-time and professional services revenues, the segment grew 10% year over year.

Platform revenues jumped 66% and exceeded non-platform revenues for the first time. Platform ARR reached $413 million and represented 51% of total software ARR. Platform dollar-based net retention was 148% compared with 82% for non-platform software, lifting the total retention rate to 109%.

Trailing 12-month software annual contract value bookings rose 39% year over year to $128 million. FICO also expanded its Accenture collaboration to support platform distribution and expects the next-generation FICO Platform, including its enterprise fraud solution, to become generally available later in calendar 2026.

FICO Margins Expand Despite Higher CostsTotal operating expenses increased 13.8% year over year to $311.6 million. Research and development expenses rose 13.8% year over year to $53.7 million, while selling, general and administrative expenses increased 22.8% year over year to $170.8 million.

Operating income increased 38.1% year over year to $362.6 million. The non-GAAP operating margin expanded to 62% from 57% a year earlier, an improvement of 479 basis points. Management noted that strong B2B Scores growth was partly offset by higher personnel and interest expenses.

Fair Isaac’s Balance Sheet and Cash FlowAs of June 30, 2026, FICO had $248.4 million in cash and cash equivalents compared with $219.4 million as of March 31, 2026. Total debt was $5.58 billion.

Net cash from operating activities was $380.4 million, up from $286.2 million in the prior-year quarter. Free cash flow increased to $370.3 million from $276.2 million. Trailing 12-month free cash flow totaled $961 million, up 28%.

FICO repurchased 1.705 million shares for $1.96 billion at an average price of $1,149 per share, marking its largest quarterly repurchase in dollar terms.

FICO Raises Fiscal 2026 OutlookManagement lifted fiscal 2026 revenue guidance to $2.53 billion from $2.45 billion. GAAP net income is now expected to be $850 million, with GAAP earnings projected to be $36.86 per share.

Non-GAAP net income guidance increased to $979 million from $946 million, while non-GAAP earnings guidance rose to $42.43 per share from $40.45. The updated view reflects continued Scores momentum and software-platform execution.

Fourth-quarter operating expenses are expected to be modestly higher sequentially because of marketing tied to the Accenture partnership and anticipated one-time restructuring charges. Elevated interest rates and affordability pressures also continue to keep mortgage originations below historical norms.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -6.74% due to these changes.

VGM ScoresAt this time, Fair Isaac has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade 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.

OutlookEstimates 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 PlayerFair Isaac is part of the Zacks Computers - IT Services industry. Over the past month, CoStar Group (CSGP - Free Report) , a stock from the same industry, has gained 6.4%. The company reported its results for the quarter ended June 2026 more than a month ago.

CoStar reported revenues of $925 million in the last reported quarter, representing a year-over-year change of +18.4%. EPS of $0.32 for the same period compares with $0.17 a year ago.

CoStar is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of +43.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.8%.

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

Key Takeaways FICO's Q3 revenues are expected to rise 26.64%, with earnings projected to grow 40.26% year over year.Higher mortgage pricing, healthy originations and Score 10T adoption may support FICO's Scores growth.FICO Platform ARR rose 49% to $349 million on customer wins, broader use cases and migrations. Fair Isaac Corporation (FICO - Free Report) is set to report its third-quarter 2026 results on July 29.

The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $679.31 million, suggesting an increase of 26.64% from the reported figure in the year-ago quarter.

The consensus mark for third-quarter 2026 earnings is pegged at $12.02 per share, down by 0.25% over the past 30 days, while indicating 40.26% year-over-year growth.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 8.78%.

Let us see how things have shaped up prior to this announcement.

Factors Likely to Impact FICO’s Q3 PerformanceFICO's third-quarter 2026 performance is likely to have been driven by continued strength in its Scores business, supported by higher mortgage pricing and healthy origination activity. Mortgage origination revenues surged 127% year over year in the second quarter of 2026, reflecting the benefit of higher pricing and stronger volumes.

The rollout of FICO Score 10T is expected to have provided another growth tailwind in the to-be-reported quarter. During the second quarter of 2026, the company added 11 lenders to its Early Adopter Program, bringing the total to 55 lenders that represent more than $495 billion in annual serviceable mortgage originations. Three of the five largest mortgage resellers have signed up for the Direct Licensing Program, with the remaining two expected to join pending final regulatory approval. These developments are likely to have supported broader adoption of FICO Score 10T in the to-be-reported quarter.

Fair Isaac’s software business is also likely to have benefited from continued momentum in the FICO Platform. Total software ARR increased 10% year over year to $789 million in the second quarter of 2026, while Platform ARR jumped 49% to $349 million. Platform revenues grew 54%, supported by new customer wins, expanded use cases among existing customers and migrations to the platform. Management noted that software bookings are expected to be stronger in the second half of fiscal 2026 than in the first half, reflecting a healthy sales pipeline. This momentum is expected to have continued in the to-be-reported quarter as well.

FICO’s investments in explainable artificial intelligence (AI) and decisioning software are expected to remain a positive catalyst. The company highlighted that the FICO Platform is "agentic-by-design," with more than 150 customers using it across multiple use cases. Management noted that FICO has been issued 137 AI-related patents and continues to invest in explainable AI capabilities for highly regulated industries, strengthening its competitive positioning as enterprise AI adoption accelerates.

However, delays in regulatory approvals for the FICO Score 10T Direct Licensing Program and uncertainty regarding the timing of its commercial rollout could affect the pace of adoption in the to-be-reported quarter. Management continues to assume conservative mortgage volume trends, while macroeconomic conditions and housing market activity remain variables that could influence quarterly performance.

What Our Model Says About FICOPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Fair Isaac currently has an Earnings ESP of -0.04% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some companies worth considering, as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases.

Amphenol (APH - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol shares have gained 16.5% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29.

ASE Technology (ASX - Free Report) has an Earnings ESP of +21.21% and a Zacks Rank #2 at present.

ASE Technology shares have surged 145.1% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30.

Fortive (FTV - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #2 at present.

Fortive shares have gained 9.8% in the year-to-date period. Fortive is set to report its second-quarter 2026 results on July 29.