FICO Announces Earnings of $8.12 per Share
Revenue of $657 million vs. $516 million in prior year BOZEMAN, Mont.--(BUSINESS WIRE)--November 4, 2026--FICO (NYSE:FICO), a global analytics software leader, today announced results for its fourth fiscal quarter ended September 30, 2026.
Net income for the quarter totaled $175.0 million, or $8.12 per share, versus $155.0 million, or $6.42 per share, in the prior year period. Net income for the quarter included three significant one-time items: 1) a $65 million accrual for a proposed settlement of the antitrust class action lawsuits related to our Scores business; 2) a $48 million non-operating gain related to the sale of an equity investment in which we had a minority interest; and 3) a $27 million restructuring charge related to a committed plan for workforce reduction.
Net cash provided by operating activities for the quarter was $294.2 million versus $223.7 million in the prior year period.
Non-GAAP Net Income for the quarter was $239.3 million versus $187.0 million in the prior year period. Non-GAAP EPS for the quarter was $11.10 versus $7.74 in the prior year period. The three significant one-time items noted above are excluded from Non-GAAP Net Income and Non-GAAP EPS, along with other adjustments consistent with prior periods.
Free cash flow was $284.3 million for the current quarter versus $210.8 million in the prior year period.
The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.
The company reported revenues of $657.0 million for the quarter as compared to $515.8 million reported in the prior year period, an increase of 27%.
“I am proud of our performance in FY26,” said Will Lansing, chief executive officer. “Our team continues to execute well despite a turbulent macro environment.”
Revenues for the fourth quarter of fiscal 2026 for the company’s two operating segments were as follows:
• Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $413.8 million in the fourth quarter, compared to $311.6 million in the prior year period, an increase of 33%. B2B revenue increased 39%, primarily attributable to a higher mortgage origination scores unit price, partially offset by a decline in mortgage originations volume. B2C revenue increased 3% from the prior year period, primarily due to increased royalties derived from scores sold indirectly to consumers through credit reporting agencies.
• Software revenues, which include the company’s analytics and digital decisioning technology, were up 19% year-over-year with $243.2 million in the fourth quarter, compared to $204.2 million in the prior year period. On September 30, 2026, Software Annual Recurring Revenue (ARR) was up 14% year- over-year, consisting of a 72% increase in platform ARR and an 18% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 112% on September 30, 2026, with platform software at 156% and non-platform software at 82%.
We are transitioning to bespoke mortgage originations pricing, tailored to the individual needs of our customers. One bespoke pricing program, the FICO Preferred Program, has had several deals already announced, and we continue to work with others on programs that will cover calendar-year 2027. At the same time, elevated interest rates and ongoing affordability challenges continue to weigh on the mortgage market, keeping loan originations below historical norms. We are in the middle of this pricing transition, where programs and agreements are still being finalized, and the outcomes of mortgage market challenges are uncertain. Because of these factors, we are not providing fiscal year 2027 guidance at this time.
The company will host a webcast on November 4, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its fourth quarter fiscal 2026 results and provide various strategic and operational updates. The call can be accessed at FICO’s web site at www.fico.com/investors. A replay of the webcast will be available on our Past Events page through November 4, 2027.
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 70 countries do everything from preventing fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO ® Score is a standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries, improving risk management, credit access and transparency.
Learn more at https://www.fico.com/en Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/ For FICO news and media resources, visit https://www.fico.com/en/newsroom
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of macroeconomic conditions on FICO’s business, operations and personnel, the success of the company’s business strategies, the maintenance of its existing relationships and ability to create new relationships with customers, distributors and other business partners, its ability to continue to develop new and enhanced products and services and to enter new markets, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use or costs of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions or divestitures, and material adverse developments or uncertainty in global economic conditions or in the markets or industries that the company serves. Additional information on these risks and uncertainties and other factors that could affect FICO’s future results are described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.
September September 30, 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── -In thousands Assets Current assets: Cash and cash $ 217,599 $ 134,136 equivalents Accounts receivable, 602,946 529,148 net Prepaid expenses and other 91,126 41,881 current assets Total current 911,671 705,165 assets Marketable 51,714 54,625 securities Property and 97,142 67,713 equipment, net Operating lease 26,418 26,213 right-of-u… assets Goodwill 791,867 783,340 Other 196,210 231,077 assets Total $ 2,075,022 $ 1,868,133 assets Liabilities and Stockholde… Deficit Current liabilitie… Accounts payable and other $ 237,853 $ 146,933 accrued liabilities Accrued compensati… and 122,267 115,369 employee benefits Deferred 222,074 187,372 revenue Current maturities 337,500 399,541 on debt Total current 919,694 849,215 liabilities Long-term 4,921,604 2,656,150 debt Operating lease 18,816 19,187 liabilities Other 88,119 89,365 liabilities Total 5,948,233 3,613,917 liabilities Stockholde… -3,873,211 -1,745,784 deficit Total liabilities and $ 2,075,022 $ 1,868,133 stockholde… deficit
Year Ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── -In thousands Cash flows from operating activities: Net income $ 834,967 $ 651,946 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 16,718 14,952 Share-based compensation 185,457 156,667 Changes in operating assets and 51,216 -18,547 liabilities Other, net -16,293 -26,211 Net cash provided by operating 1,072,065 778,807 activities Cash flows from investing activities: Purchases of property and -2,140 -8,922 equipment Capitalized internal-use -35,550 -30,485 software costs Net activity from marketable 5,099 -4,312 securities Other, net -12,810 — Net cash used in investing -45,401 -43,719 activities Cash flows from financing activities: Proceeds from revolving line of credit 3,095,000 725,000 and term loans Payments on revolving line of credit and -1,485,000 -1,368,750 term loans Proceeds from issuance of 1,000,000 1,500,000 senior notes Payments on senior notes -400,000 — Proceeds from issuance of treasury stock 22,939 32,823 under employee stock plans Taxes paid related to net share -112,564 -204,593 settlement of equity awards Repurchases of common stock -3,045,991 -1,414,502 Other, net -15,513 -20,307 Net cash used in financing -941,129 -750,329 activities Effect of exchange rate -2,072 -1,290 changes on cash Increase (decrease) in cash and cash 83,463 -16,531 equivalents Cash and cash equivalents, beginning of 134,136 150,667 year Cash and cash equivalents, end $ 217,599 $ 134,136 of year
To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.
Full text with the tables
Exhibit 99.1
FICO Announces Earnings of $8.12 per Share
for Fourth Quarter Fiscal 2026
Revenue of $657 million vs. $516 million in prior year
BOZEMAN, Mont.--(BUSINESS WIRE)--November 4, 2026--FICO (NYSE:FICO), a global
analytics software leader, today announced results for its fourth fiscal quarter
ended September 30, 2026.
Fourth Quarter Fiscal 2026 GAAP Results
Net income for the quarter totaled $175.0 million, or $8.12 per share, versus
$155.0 million, or $6.42 per share, in the prior year period. Net income for the
quarter included three significant one-time items: 1) a $65 million accrual for
a proposed settlement of the antitrust class action lawsuits related to our
Scores business; 2) a $48 million non-operating gain related to the sale of an
equity investment in which we had a minority interest; and 3) a $27 million
restructuring charge related to a committed plan for workforce reduction.
Net cash provided by operating activities for the quarter was $294.2 million
versus $223.7 million in the prior year period.
Fourth Quarter Fiscal 2026 Non-GAAP Results
Non-GAAP Net Income for the quarter was $239.3 million versus $187.0 million in
the prior year period. Non-GAAP EPS for the quarter was $11.10 versus $7.74 in
the prior year period. The three significant one-time items noted above are
excluded from Non-GAAP Net Income and Non-GAAP EPS, along with other adjustments
consistent with prior periods.
Free cash flow was $284.3 million for the current quarter versus $210.8 million
in the prior year period.
The Non-GAAP financial measures are described in the financial table captioned
“Non-GAAP Results” and are reconciled to the corresponding GAAP results in the
financial tables at the end of this release.
Fourth Quarter Fiscal 2026 GAAP Revenue
The company reported revenues of $657.0 million for the quarter as compared to
$515.8 million reported in the prior year period, an increase of 27%.
“I am proud of our performance in FY26,” said Will Lansing, chief executive
officer. “Our team continues to execute well despite a turbulent macro
environment.”
Revenues for the fourth quarter of fiscal 2026 for the company’s two operating
segments were as follows:
• Scores revenues, which include the company’s business-to-business (B2B)
scoring solutions, and business-to-consumer (B2C) solutions, were $413.8 million
in the fourth quarter, compared to $311.6 million in the prior year period, an
increase of 33%. B2B revenue increased 39%, primarily attributable to a higher
mortgage origination scores unit price, partially offset by a decline in
mortgage originations volume. B2C revenue increased 3% from the prior year
period, primarily due to increased royalties derived from scores sold indirectly
to consumers through credit reporting agencies.
• Software revenues, which include the company’s analytics and digital
decisioning technology, were up 19% year-over-year with $243.2 million in the
fourth quarter, compared to $204.2 million in the prior year period. On
September 30, 2026, Software Annual Recurring Revenue (ARR) was up 14% year-
over-year, consisting of a 72% increase in platform ARR and an 18% decline in
non-platform ARR. The total Software Dollar-Based Net Retention Rate was 112% on
September 30, 2026, with platform software at 156% and non-platform software at
82%.
Outlook
We are transitioning to bespoke mortgage originations pricing, tailored to the
individual needs of our customers. One bespoke pricing program, the FICO
Preferred Program, has had several deals already announced, and we continue to
work with others on programs that will cover calendar-year 2027. At the same
time, elevated interest rates and ongoing affordability challenges continue to
weigh on the mortgage market, keeping loan originations below historical norms.
We are in the middle of this pricing transition, where programs and agreements
are still being finalized, and the outcomes of mortgage market challenges are
uncertain. Because of these factors, we are not providing fiscal year 2027
guidance at this time.
Company to Host Conference Call
The company will host a webcast on November 4, 2026, at 5:00 p.m. Eastern Time
(2:00 p.m. Pacific Time) to report its fourth quarter fiscal 2026 results and
provide various strategic and operational updates. The call can be accessed at
FICO’s web site at www.fico.com/investors. A replay of the webcast will be
available on our Past Events page through November 4, 2027.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the
world prosper. Founded in 1956, the company is a pioneer in the use of
predictive analytics and data science to improve operational decisions. FICO
holds more than 200 U.S. and foreign patents on technologies that increase
profitability, customer satisfaction and growth for businesses in financial
services, insurance, telecommunications, health care, retail and many other
industries. Using FICO solutions, businesses in more than 70 countries do
everything from preventing fraud, to improving financial inclusion, to
increasing supply chain resiliency. The FICO ® Score is a standard measure of
consumer credit risk in the U.S. and has been made available in over 40 other
countries, improving risk management, credit access and transparency.
Learn more at https://www.fico.com/en
Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/
For FICO news and media resources, visit https://www.fico.com/en/newsroom
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other
countries.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in
this news release that relate to FICO or its business are forward-looking
statements within the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially, including the impact of macroeconomic conditions on FICO’s business,
operations and personnel, the success of the company’s business strategies, the
maintenance of its existing relationships and ability to create new
relationships with customers, distributors and other business partners, its
ability to continue to develop new and enhanced products and services and to
enter new markets, its ability to recruit and retain key technical and
managerial personnel, competition, regulatory changes applicable to the use or
costs of consumer credit and other data, the failure to protect such data, the
failure to realize the anticipated benefits of any acquisitions or divestitures,
and material adverse developments or uncertainty in global economic conditions
or in the markets or industries that the company serves. Additional information
on these risks and uncertainties and other factors that could affect FICO’s
future results are described from time to time in FICO’s SEC reports, including
its Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and
its subsequent filings with the SEC. If any of these risks or uncertainties
materializes, FICO’s results could differ materially from its expectations.
Investors are cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. FICO disclaims any
intent or obligation to update these forward-looking statements, whether as a
result of new information, future events or otherwise.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September September
30, 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
-In
thousands
Assets
Current
assets:
Cash and
cash $ 217,599 $ 134,136
equivalents
Accounts
receivable, 602,946 529,148
net
Prepaid
expenses
and other 91,126 41,881
current
assets
Total
current 911,671 705,165
assets
Marketable 51,714 54,625
securities
Property
and 97,142 67,713
equipment,
net
Operating
lease 26,418 26,213
right-of-u…
assets
Goodwill 791,867 783,340
Other 196,210 231,077
assets
Total $ 2,075,022 $ 1,868,133
assets
Liabilities
and
Stockholde…
Deficit
Current
liabilitie…
Accounts
payable and
other $ 237,853 $ 146,933
accrued
liabilities
Accrued
compensati…
and 122,267 115,369
employee
benefits
Deferred 222,074 187,372
revenue
Current
maturities 337,500 399,541
on debt
Total
current 919,694 849,215
liabilities
Long-term 4,921,604 2,656,150
debt
Operating
lease 18,816 19,187
liabilities
Other 88,119 89,365
liabilities
Total 5,948,233 3,613,917
liabilities
Stockholde… -3,873,211 -1,745,784
deficit
Total
liabilities
and $ 2,075,022 $ 1,868,133
stockholde…
deficit
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarter Year
Ended Ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
-In
thousa…
except
per
share
data
Reven…
On-pr…
and $ 223,697 $ 182,393 $ 808,118 $ 740,1…
SaaS
softw…
Profe… 19,534 21,806 74,533 82,149
servi…
Scores 413,818 311,552 1,652,… 1,168…
Total 657,049 515,751 2,534,… 1,990…
reven…
Opera…
expen…
Cost
of 86,003 91,176 351,480 353,7…
reven…
Resea…
and 51,771 50,953 209,307 188,3…
devel…
Selli…
gener… 225,430 125,544 681,099 513,0…
and
admin…
Restr… 27,293 10,922 27,293 10,922
charg…
Total
opera… 390,497 278,595 1,269,… 1,066…
expen…
Opera… 266,552 237,156 1,265,… 924,8…
income
Other
expen… -29,121 -34,697 -165,6… -122,…
net
Income
before 237,431 202,459 1,100,… 802,5…
income
taxes
Provi…
for 62,467 47,445 265,083 150,6…
income
taxes
Net $ 174,964 $ 155,014 $ 834,967 $ 651,9…
income
Earni…
per
share:
Basic $ 8.16 $ 6.48 $ 36.52 $ 26.90
Dilut… $ 8.12 $ 6.42 $ 36.32 $ 26.54
Shares
used
in
compu…
earni…
per
share:
Basic 21,446 23,909 22,863 24,239
Dilut… 21,559 24,160 22,988 24,561
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
-In thousands
Cash flows from operating
activities:
Net income $ 834,967 $ 651,946
Adjustments to reconcile net
income to
net cash provided by operating
activities:
Depreciation and amortization 16,718 14,952
Share-based compensation 185,457 156,667
Changes in operating assets
and 51,216 -18,547
liabilities
Other, net -16,293 -26,211
Net cash provided by operating 1,072,065 778,807
activities
Cash flows from investing
activities:
Purchases of property and -2,140 -8,922
equipment
Capitalized internal-use -35,550 -30,485
software costs
Net activity from marketable 5,099 -4,312
securities
Other, net -12,810 —
Net cash used in investing -45,401 -43,719
activities
Cash flows from financing
activities:
Proceeds from revolving line
of credit 3,095,000 725,000
and term loans
Payments on revolving line of
credit and -1,485,000 -1,368,750
term loans
Proceeds from issuance of 1,000,000 1,500,000
senior notes
Payments on senior notes -400,000 —
Proceeds from issuance of
treasury stock 22,939 32,823
under employee stock plans
Taxes paid related to net
share -112,564 -204,593
settlement of equity awards
Repurchases of common stock -3,045,991 -1,414,502
Other, net -15,513 -20,307
Net cash used in financing -941,129 -750,329
activities
Effect of exchange rate -2,072 -1,290
changes on cash
Increase (decrease) in cash
and cash 83,463 -16,531
equivalents
Cash and cash equivalents,
beginning of 134,136 150,667
year
Cash and cash equivalents, end $ 217,599 $ 134,136
of year
FAIR ISAAC CORPORATION
NON-GAAP RESULTS
(Unaudited)
Quarter Year
Ended Ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
-In
thousa…
except
per
share
data
GAAP
net $ 174,964 $ 155,014 $ 834,967 $ 651,9…
income
Restr… 27,293 10,922 27,293 10,922
charg…
Share…
compe… 43,547 32,379 185,457 156,6…
expen…
Propo…
litig… 65,000 — 65,000 —
settl…
costs
Gain
on
sale -47,927 — -47,927 —
of
equity
inves…
Income
tax -22,802 -10,833 -59,323 -41,3…
adjus…
Excess
tax -795 -529 -17,167 -44,1…
benef…
Non-G…
net $ 239,280 $ 186,953 $ 988,300 $ 733,9…
income
GAAP
dilut…
earni… $ 8.12 $ 6.42 $ 36.32 $ 26.54
per
share
Restr… 1.27 0.45 1.19 0.44
charg…
Share…
compe… 2.02 1.34 8.07 6.38
expen…
Propo…
litig… 3.01 — 2.83 —
settl…
costs
Gain
on
sale -2.22 — -2.08 —
of
equity
inves…
Income
tax -1.06 -0.45 -2.58 -1.69
adjus…
Excess
tax -0.04 -0.02 -0.75 -1.80
benef…
Non-G…
dilut…
earni… $ 11.10 $ 7.74 $ 42.99 $ 29.88
per
share
Free
cash
flow
Net
cash
provi… $ 294,185 $ 223,669 $ 1,072,… $ 778,8…
by
opera…
activ…
Capit… -9,845 -12,825 -37,690 -39,4…
expen…
Free
cash $ 284,340 $ 210,844 $ 1,034,… $ 739,4…
flow
Note: The numbers may not sum to total due to rounding.
About Non-GAAP Financial Measures
To supplement the consolidated GAAP financial statements, the company uses the
following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and
free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent
applicable, such items as the impact of amortization expense, share-based
compensation expense, restructuring and acquisition-related, excess tax benefit,
and adjustment to tax valuation allowance items. Free cash flow excludes capital
expenditures. The presentation of these financial measures is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
Management uses these non-GAAP financial measures for financial and operational
decision-making and as a means to evaluate period-to-period comparisons. Our
management believes these non-GAAP financial measures provide meaningful
supplemental information regarding our performance and liquidity by excluding
certain items that may not be indicative of recurring business results including
significant non-cash expenses. We believe management and investors benefit from
referring to these non-GAAP financial measures in assessing our performance when
planning, forecasting and analyzing future periods. These non-GAAP financial
measures also facilitate management’s internal comparisons to historical
performance and liquidity as well as comparisons to our competitors’ operating
results. We believe these non-GAAP financial measures are useful to investors
because they allow for greater transparency with respect to key measures used by
management in its financial and operating decision-making.
Contacts
Investors/Analysts:
Dave Singleton
Fair Isaac Corporation
(800) 459-7125
investor@fico.com