FICO Reports Strong First Quarter Results for Fiscal 2026

Fair Isaac Corporation (FICO), a leader in analytics software, announced its earnings for the first quarter of fiscal 2026, reporting a robust net income of $158.4 million, translating to $6.61 per share. This marks a notable increase compared to $152.5 million, or $6.14 per share, from the same period last year.

The company also reported net cash provided by operating activities totaling $174.1 million, down from $194.0 million in the prior year. These figures indicate a solid start to the fiscal year, reflecting FICO's ongoing strength in the analytics space.

In addition to its GAAP results, FICO presented its non-GAAP measures, which showcased even more impressive growth. The non-GAAP net income for the quarter reached $175.6 million, up from $143.8 million year-over-year, while the non-GAAP earnings per share (EPS) rose to $7.33 from $5.79. Furthermore, the company's free cash flow for the quarter was reported at $165.4 million, compared to $186.8 million in the prior year period.

These non-GAAP measures, which provide a clearer picture of FICO's operational performance by excluding certain expenses, enhance the understanding of the company's financial health.

FICO's revenues for the quarter totaled $512.0 million, a significant increase of 16% from $440.0 million in the prior year. The revenue growth was driven by two main operating segments:

The Scores segment, which encompasses both business-to-business (B2B) and business-to-consumer (B2C) scoring solutions, generated revenues of $304.5 million, reflecting a remarkable 29% increase year-over-year. B2B revenue surged by 36%, primarily due to a higher unit price for mortgage origination scores and increased mortgage origination volumes. The B2C revenue also saw a 5% rise, attributed to heightened activity from indirect channel partners.

In the Software segment, which includes FICO's analytics and digital decisioning technologies, revenues grew modestly by 2%, totaling $207.5 million, compared to $204.3 million in the same quarter last year. The Software Annual Recurring Revenue (ARR) increased by 5% year-over-year, driven by a 33% increase in platform ARR, although there was an 8% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate stood at 103% as of December 31, 2025, with platform software at an impressive 122% and non-platform software at 91%.

FICO's management remains optimistic about the company's future performance. CEO Will Lansing stated, “We had a good start to our fiscal year, with strong top and bottom-line growth. We reiterate our fiscal year 2026 guidance, which yields stronger growth than we achieved in FY25.”

The guidance for fiscal 2026 remains unchanged, with projected revenues of $2.35 billion, GAAP net income of $795 million, GAAP EPS of $33.47, non-GAAP net income of $907 million, and non-GAAP EPS of $38.17.

FICO will host a conference call on January 28, 2026, at 5:00 p.m. Eastern Time to discuss its first-quarter results and provide strategic updates. Investors and analysts are encouraged to participate in the webcast, which will also be available for replay on the company's website.

Founded in 1956, Fair Isaac Corporation is a pioneer in predictive analytics and data science, empowering businesses to make informed operational decisions. With over 200 patents, FICO's solutions are utilized globally across various industries, including financial services, insurance, telecommunications, and healthcare. The company continues to innovate in risk management and decision-making, with its FICO® Score recognized as a standard measure of consumer credit risk in the U.S.

As FICO navigates the evolving landscape of analytics and decisioning technologies, its strong financial results and strategic outlook position it well for continued growth and success in the fiscal year ahead.