Fair Isaac Corp (FICO) · Nov 4, 2026 · Earnings

FICO earnings beat estimates, but FY2027 guidance stays blank

Beat — Non-GAAP EPS $11.10 vs ~$10.69-$10.84 consensus

FICO’s fourth-quarter earnings beat consensus on revenue and adjusted EPS, but the mortgage-pricing transition leaves FY2027 guidance suspended.

FICO is shifting its mortgage-scoring business toward customer-specific pricing while building a faster-growing software platform; the transition is producing strong current results but making the next year harder to forecast. Published Q4 consensus was roughly $651.7 million of revenue and $10.69-$10.84 of adjusted EPS, so the quarter landed modestly above the bar.

The quarter was a genuine, but narrow, earnings beat. Revenue rose 27% year over year to $657.0 million, led by Scores revenue up 33% and software revenue up 19% (Income Statement; Segment results). Non-GAAP diluted EPS reached $11.10 versus $7.74 a year earlier, ahead of the published consensus range, while free cash flow increased to $284.3 million from $210.8 million (Non-GAAP Results). The clean operating signal is strong, although the reported GAAP result included a $65 million litigation accrual, a $48 million investment-sale gain and a $27 million restructuring charge.

MetricQ4 2026Q4 2025Consensus
Total revenue (Income Statement)$657.0M (+27.4%)$515.8M~$651.7M
Scores revenue (Segment results)$413.8M (+32.8%)$311.6M
Software revenue (Segment results)$243.2M (+19.1%)$204.2M
Non-GAAP diluted EPS (Non-GAAP Results)$11.10 (+43.4%)$7.74~$10.69-$10.84
Free cash flow (Non-GAAP Results)$284.3M (+34.9%)$210.8M

The strategic software transition is gaining traction, but unevenly. Platform ARR rose 72% and platform dollar-based net retention reached 156%, evidence that the newer platform products are expanding within customers. But non-platform ARR fell 18% and its net retention rate was 82%, showing that the legacy software base is contracting as FICO shifts its product mix. 〔0〕

The main disappointment is not the quarter; it is the missing FY2027 outlook. FICO says mortgage originations remain below historical norms and that bespoke pricing programs for calendar-year 2027 are still being finalized, so it is providing no fiscal 2027 guidance. That leaves the market with a better-than-expected current quarter but less visibility into whether higher mortgage-score pricing can offset weak volumes and how quickly the new contracts convert into revenue. 〔1〕

FICO also remains heavily leveraged after combining debt-funded capital actions with large buybacks. Long-term debt rose to $4.92 billion from $2.66 billion, while the company repurchased $3.05 billion of stock during the year (Balance Sheet; Cash Flow statement). Strong operating cash flow of $1.07 billion provides support, but the balance sheet gives the forward pricing transition greater importance because execution must carry a substantial financing burden.

Bottom line: FICO delivered a modest earnings beat with strong Scores growth and accelerating platform software, but the absence of FY2027 guidance keeps the bigger pricing-transition question unresolved. The filing improves the current operating picture without materially removing the next-year uncertainty.

What to watch next

FY2027 outlook after bespoke pricing programs are finalized

Original filing on SEC EDGAR

More Fair Isaac Corp news

FICO earnings beat estimates, but FY2027 guidance stays blank | FICO Stock News
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