Fair Isaac Corporation's fourth quarter revenue of $657M beat estimates as Scores pricing offset lower volumes

Fair Isaac Corporation (FICO) reported fourth quarter fiscal 2026 revenue of $657.0 million, a 27% increase year-over-year, exceeding consensus estimates of $653.73 million. Non-GAAP diluted EPS reached $11.10, surpassing the expected $10.75, as the company effectively utilized pricing power in its Scores segment to overcome volume headwinds in the mortgage market. However, management declined to provide fiscal 2027 guidance, citing a transition to a new bespoke pricing model for mortgage originations and ongoing interest rate uncertainty.

Key Highlights

• Scores segment revenue grew 33% to $413.8 million, led by a 39% increase in B2B revenue despite a decline in total mortgage origination volumes.
• Software segment revenue rose 19% to $243.2 million, with Software Platform Annual Recurring Revenue (ARR) surging 72% year-over-year.
• GAAP results included several material one-time items, specifically a $65 million accrual for a proposed antitrust settlement and a $48 million gain from the sale of an equity investment.