FICO Announces Strong Third Quarter Earnings for Fiscal 2026

Fair Isaac Corporation (NYSE: FICO), a global leader in analytics software, has reported impressive financial results for its third fiscal quarter ended June 30, 2026. The company announced a net income of $237.2 million, translating to earnings of $10.45 per share, a significant increase from $181.8 million or $7.40 per share for the same period last year. This strong performance showcases FICO's successful execution of its strategic initiatives and robust demand for its offerings.

FICO's operating activities generated substantial cash flow, with net cash provided amounting to $380.4 million compared to $286.2 million in the prior year. The company's revenue for the third quarter reached $674.2 million, marking a 26% increase from $536.4 million in the previous year. This growth is attributed to both the company's Scoring and Software segments.

The *Scores* segment, which includes business-to-business (B2B) and business-to-consumer (B2C) scoring solutions, saw substantial growth, with revenues reaching $458.9 million, a 41% increase from $324.3 million in the prior year. Notably, B2B revenue surged by 49%, primarily due to a higher unit price for mortgage origination scores. Meanwhile, B2C revenue experienced a 5% increase, driven by higher royalties from scores sold indirectly to consumers through credit reporting agencies.

The *Software* segment, which encompasses FICO's analytics and digital decisioning technology, reported revenues of $215.3 million, a modest 2% increase from $212.1 million in the prior year. The Software Annual Recurring Revenue (ARR) as of June 30, 2026, increased by 10% year-over-year, driven by a remarkable 62% rise in platform ARR, although non-platform ARR saw a 17% decline. The total Software Dollar-Based Net Retention Rate stood at 109%, with platform software at an impressive 148% and non-platform software at 82%.

In light of its strong performance, FICO updated its fiscal 2026 guidance, raising its revenue forecast from $2.45 billion to $2.53 billion. The company also increased its GAAP net income estimate from $825 million to $850 million, and its GAAP earnings per share (EPS) outlook from $35.60 to $36.86. Similarly, the non-GAAP net income guidance was raised from $946 million to $979 million, with non-GAAP EPS expectations increasing from $40.45 to $42.43.

Will Lansing, FICO's Chief Executive Officer, expressed satisfaction with the company’s performance, stating, “We delivered another quarter of strong performance, driven by the successful execution of our strategic priorities. We are pleased to announce that we are raising our full year guidance.” This statement reinforces the company's confidence in its ongoing growth trajectory.

FICO will host a webcast on July 29, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its third quarter results and provide further strategic and operational updates. Investors and analysts interested in the call can access it through FICO's website.

FICO's impressive third quarter performance underscores its strong market position and the effectiveness of its strategic initiatives. With increased guidance and robust revenue growth, the company appears well-positioned for sustained success in the upcoming quarters. As FICO continues to innovate and expand its analytics capabilities, stakeholders will be keenly watching its progress in the fiscal year ahead.