Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Strong earnings confirmation: Q2 FY2026 revenue rose 39% YoY to $692M, FY26 EPS guidance was raised, margins expanded, a new $1.5B repurchase program was approved, mortgage-related Scores revenue rose 127%, and the stock hit a new 21-day high.
Loading chart data...
AI Analyst Overview
Loading chart data...
Valuation Metrics
Fundamental Analysis
Key Financial Insights: • Exceptional Margins • Rising Leverage • Improving Liquidity FICO combines exceptional margins, strong cash generation, and improving liquidity with rising leverage, negative equity, aggressive buybacks, and a still-premium valuation.
Price Behavior
Key Price Behavior Insights: • Rebound gaining traction • Resistance remains overhead • Support must hold Support Level: $1,060–$1,080; stronger support at $1,030–$1,050 Resistance Level: $1,170–$1,180; higher resistance at $1,235–$1,280 FICO's rebound from $1,030–$1,050 support has improved momentum, but the last month remains down 5.2% and a confirmed reversal requires a break above $1,180 while holding $1,060–$1,080.
Sentiment & News
Key News Insights: • Strong quarterly growth • Mortgage adoption expanding • UK delinquencies rising FICO posted strong growth and raised its outlook, supported by Scores demand and platform expansion, but a revenue miss, cautious guidance, and rising UK delinquencies weighed on sentiment.
AI Summary
FICO is transitioning into a high-growth data-and-pricing platform, but investors should demand continued platform ARR growth, legacy-revenue replacement, and net-debt reduction before treating the still-demanding valuation as justified.
Description
Fair Isaac Corporation develops analytics, software, and data management products used by businesses worldwide to automate and connect decisioning within transaction and customer workflows. The company operates two segments: Software, which provides a modular decisioning platform, configurable analytic tools and professional services for use cases such as customer acquisition, fraud detection and compliance; and Scores, which supplies business scoring services and consumer-facing myFICO subscription offerings. It sells primarily through direct and indirect sales channels and online; the company was founded in 1956 and is headquartered in Bozeman, Montana.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| May 18 | May 25 | FICO | Fair Isaac Corporation | Strong earnings confirmation: Q2 FY2026 revenue rose 39% YoY to $692M, FY26 EPS guidance was raised, margins expanded, a new $1.5B repurchase program was approved, mortgage-related Scores revenue rose 127%, and the stock hit a new 21-day high. | Closed | +4.9% |