Fair Isaac Corp (FICO) · Nov 4, 2026 · Earnings
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.
| Metric | Q4 2026 | Q4 2025 | Consensus |
|---|---|---|---|
| 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.
FY2027 outlook after bespoke pricing programs are finalized
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