FICO Announces Earnings of $8.12 per Share for Fourth Quarter Fiscal 2026
FAIR ISAAC CORP (FICO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FICO Announces Earnings of $8.12 per Share for Fourth Quarter Fiscal 2026 Revenue of $657 million vs. $516 million in prior year BOZEMAN, Mont.--(BUSINESS WIRE)--November 4, 2026--FICO (NYSE:FICO), a global analytics software leader, today announced results for its f
How this was made
The 30-second read
Why it matters
The earnings beat and revenue expansion are likely to drive short‑term upside, while legal settlement and mortgage market headwinds may temper longer‑term outlook.
Market read
First‑report earnings release for a mid‑cap US‑listed software firm; material financial metrics disclosed.
What to watch
Elevated interest rates and a slowing mortgage market could dampen the Scores segment growth despite short‑term earnings beat.
FICO Announces Earnings of $8.12 per Share for Fourth Quarter Fiscal 2026 Revenue of $657 million vs. $516 million in prior year
Fourth-quarter revenue increased 27%, with Scores revenue up 33% and Software revenue up 19%. GAAP and non-GAAP earnings, operating cash flow, and free cash flow were higher than the prior-year period, although fiscal 2027 guidance was not provided amid the transition to bespoke mortgage-originations pricing and uncertainty in the mortgage market.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, quarter ended September 30, 2026GAAP | $657.0M | – | 27% |
| Total revenues, year ended September 30, 2026GAAP | $2.53B | – | – |
| On-premises and SaaS software revenues, quarter ended September 30, 2026GAAP | $223.7M | – | – |
| On-premises and SaaS software revenues, year ended September 30, 2026GAAP | $808.1M | – | – |
| Professional services revenues, quarter ended September 30, 2026GAAP | $19.53M | – | – |
| Professional services revenues, year ended September 30, 2026GAAP | $74.53M | – | – |
| Scores revenues, quarter ended September 30, 2026GAAP | $413.8M | – | 33% |
| Scores revenues, year ended September 30, 2026GAAP | $1.65B | – | – |
| Cost of revenues, quarter ended September 30, 2026GAAP | $86.00M | – | – |
| Cost of revenues, year ended September 30, 2026GAAP | $351.5M | – | – |
| Research and development expense, quarter ended September 30, 2026GAAP | $51.77M | – | – |
| Selling, general and administrative expense, quarter ended September 30, 2026GAAP | $225.4M | – | – |
| Restructuring charges, quarter ended September 30, 2026GAAP | $27.29M | – | – |
| Total operating expenses, quarter ended September 30, 2026GAAP | $390.5M | – | – |
| Operating income, quarter ended September 30, 2026GAAP | $266.6M | – | – |
| Operating income, year ended September 30, 2026GAAP | $1.27B | – | – |
| Other expense, net, quarter ended September 30, 2026GAAP | −$29.12M | – | – |
| Income before income taxes, quarter ended September 30, 2026GAAP | $237.4M | – | – |
| Provision for income taxes, quarter ended September 30, 2026GAAP | $62.47M | – | – |
| Net income, quarter ended September 30, 2026GAAP | $175.0M | – | – |
| Net income, year ended September 30, 2026GAAP | $835.0M | – | – |
| Diluted earnings per share, quarter ended September 30, 2026GAAP | $8.12 | – | – |
| Diluted earnings per share, year ended September 30, 2026GAAP | $36.32 | – | – |
| Basic earnings per share, quarter ended September 30, 2026GAAP | $8.16 | – | – |
| Non-GAAP net income, quarter ended September 30, 2026non-GAAP | $239.3M | – | – |
| Non-GAAP net income, year ended September 30, 2026non-GAAP | $988.3M | – | – |
| Non-GAAP diluted earnings per share, quarter ended September 30, 2026non-GAAP | $11.10 | – | – |
| Non-GAAP diluted earnings per share, year ended September 30, 2026non-GAAP | $42.99 | – | – |
| Net cash provided by operating activities, quarter ended September 30, 2026GAAP | $294.2M | – | – |
| Net cash provided by operating activities, year ended September 30, 2026GAAP | $1.07B | – | – |
| Free cash flow, quarter ended September 30, 2026non-GAAP | $284.3M | – | – |
| Free cash flow, year ended September 30, 2026non-GAAP | $1.03B | – | – |
| Software Annual Recurring Revenue as of September 30, 2026other | up 14% year-over-year | – | 14% |
| Platform ARR as of September 30, 2026other | 72% increase | – | 72% increase |
| Non-platform ARR as of September 30, 2026other | 18% decline | – | 18% decline |
| Total Software Dollar-Based Net Retention Rate as of September 30, 2026other | 112% | – | – |
| Platform software Dollar-Based Net Retention Rate as of September 30, 2026other | 156% | – | – |
| Non-platform software Dollar-Based Net Retention Rate as of September 30, 2026other | 82% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ScoresB2B revenue increased 39%, primarily attributable to a higher mortgage origination scores unit price, partially offset by a decline in mortgage originations volume. B2C revenue increased 3% from the prior year period, primarily due to increased royalties derived from scores sold indirectly to consumers through credit reporting agencies. | $413.8M | – | 33% |
| SoftwareSoftware Annual Recurring Revenue was up 14% year-over-year, consisting of a 72% increase in platform ARR and an 18% decline in non-platform ARR. Total Software Dollar-Based Net Retention Rate was 112%. | $243.2M | – | 19% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Repurchases of common stock for the year ended September 30, 2026 were $(3,045,991) (In thousands), compared with $(1,414,502) (In thousands) for the year ended September 30, 2025.
- Taxes paid related to net share settlement of equity awards for the year ended September 30, 2026 were $(112,564) (In thousands), compared with $(204,593) (In thousands) for the year ended September 30, 2025.
What drove it
- Scores revenue increased 33% to $413.8 million in the fourth quarter.
- B2B Scores revenue increased 39%, primarily attributable to a higher mortgage origination scores unit price, partially offset by a decline in mortgage originations volume.
- B2C Scores revenue increased 3%, primarily due to increased royalties derived from scores sold indirectly to consumers through credit reporting agencies.
- Software revenue was up 19% year-over-year to $243.2 million.
- Software ARR was up 14% year-over-year, with platform ARR up 72%.
- Net cash provided by operating activities was $294.2 million and free cash flow was $284.3 million for the quarter.
Concerns
- Elevated interest rates and ongoing affordability challenges continue to weigh on the mortgage market, keeping loan originations below historical norms.
- FICO is in the middle of a transition to bespoke mortgage-originations pricing, with programs and agreements still being finalized.
- Non-platform ARR declined 18% year-over-year and non-platform software Dollar-Based Net Retention Rate was 82%.
- Fourth-quarter GAAP net income included a $65 million accrual for a proposed settlement of Scores-related antitrust class action lawsuits and a $27 million restructuring charge related to a committed workforce-reduction plan.
- Long-term debt was $4,921,604 (In thousands) as of September 30, 2026.
What to watch
- Progress in finalizing bespoke mortgage-originations pricing programs and agreements covering calendar-year 2027.
- The effect of mortgage origination volumes and mortgage origination scores unit pricing on B2B Scores revenue.
- Platform ARR growth and whether non-platform ARR and non-platform software Dollar-Based Net Retention Rate stabilize.
- The outcome and financial effect of the proposed antitrust class action settlement accrual.
- Whether the company resumes fiscal 2027 guidance after the pricing transition and mortgage-market uncertainty develop.
Balance sheet and cash flow
- Cash and cash equivalents were $217,599 (In thousands) as of September 30, 2026, compared with $134,136 (In thousands) as of September 30, 2025.
- Marketable securities were $51,714 (In thousands) as of September 30, 2026, compared with $54,625 (In thousands) as of September 30, 2025.
- Current maturities on debt were $337,500 (In thousands) as of September 30, 2026, compared with $399,541 (In thousands) as of September 30, 2025.
- Long-term debt was $4,921,604 (In thousands) as of September 30, 2026, compared with $2,656,150 (In thousands) as of September 30, 2025.
- Total liabilities were $5,948,233 (In thousands) as of September 30, 2026, compared with $3,613,917 (In thousands) as of September 30, 2025.
- Stockholders’ deficit was $(3,873,211) (In thousands) as of September 30, 2026, compared with $(1,745,784) (In thousands) as of September 30, 2025.
- Capital expenditures were $(9,845) (In thousands) for the quarter ended September 30, 2026, compared with $(12,825) (In thousands) in the prior-year period.
- Capital expenditures were $(37,690) (In thousands) for the year ended September 30, 2026, compared with $(39,407) (In thousands) for the year ended September 30, 2025.
- Net cash used in financing activities was $(941,129) (In thousands) for the year ended September 30, 2026, compared with $(750,329) (In thousands) for the year ended September 30, 2025.
Analysis
FICO completed fiscal 2026 with fourth-quarter GAAP revenue of $657,049 (In thousands), compared with $515,751 (In thousands) in the prior-year period, a reported increase of 27%. Scores generated $413.8 million of fourth-quarter revenue and increased 33%, while Software produced $243.2 million and was up 19% year-over-year. The annual revenue result was $2,534,873 (In thousands), compared with $1,990,869 (In thousands) in fiscal 2025.
Scores growth was led by B2B revenue, which increased 39%, primarily attributable to a higher mortgage origination scores unit price. That growth was partially offset by a decline in mortgage originations volume. B2C revenue increased 3%, driven primarily by increased royalties from scores sold indirectly to consumers through credit reporting agencies. Software ARR was up 14% year-over-year, supported by a 72% increase in platform ARR, while non-platform ARR declined 18%. Total Software Dollar-Based Net Retention Rate was 112%, with platform software at 156% and non-platform software at 82%.
GAAP operating income was $266,552 (In thousands) in the quarter, compared with $237,156 (In thousands) a year earlier. GAAP net income was $174,964 (In thousands), or $8.12 diluted earnings per share, and non-GAAP net income was $239,280 (In thousands), or $11.10 per diluted share. The GAAP result included a $65 million accrual for a proposed antitrust class action settlement related to Scores, a $48 million non-operating gain from the sale of a minority equity investment, and a $27 million workforce-reduction restructuring charge.
Cash generation remained substantial. Quarterly net cash provided by operating activities was $294,185 (In thousands), compared with $223,669 (In thousands) in the prior-year period, and quarterly free cash flow was $284,340 (In thousands), compared with $210,844 (In thousands). For the fiscal year, the company repurchased $3,045,991 (In thousands) of common stock. Cash and cash equivalents ended the year at $217,599 (In thousands), while long-term debt was $4,921,604 (In thousands) and stockholders’ deficit was $(3,873,211) (In thousands).
FICO did not provide fiscal year 2027 guidance. Management cited the ongoing transition to bespoke mortgage-originations pricing, with programs and agreements still being finalized, as well as uncertainty from elevated interest rates, affordability challenges, and loan originations below historical norms. The key reported operating markers for the next period are the execution of bespoke pricing programs, the balance between price and volume in B2B Scores, and the divergence between platform and non-platform Software performance.
Management, verbatim
I am proud of our performance in FY26. Our team continues to execute well despite a turbulent macro environment.
Will Lansing, chief executive officer
Not in the filing
stated, not guessed- Fiscal year 2027 quantitative revenue guidance was not provided.
- Fiscal year 2027 quantitative gross margin, operating expense, tax rate, EPS, cash flow, and free cash flow guidance were not provided.
- Previous-release outlook was not provided; therefore, comparison of reported results with prior guidance is unavailable.
- Gross margin was not reported.
- Operating margin was not reported.
- Quarter-over-quarter comparisons were not reported.
- Dividend amount and dividend declaration were not reported.
- Quarterly balance-sheet debt and cash-flow statements were not reported.
- Prior-year figures for Software ARR and Software Dollar-Based Net Retention Rate were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
FICO filed an 8‑K announcing its Q4 FY2026 results, including GAAP and non‑GAAP earnings, revenue growth, and a one‑time settlement accrual.
Ticker impact
FICO reported Q4 FY2026 earnings: $8.12 GAAP EPS, $657M revenue, beat prior year and disclosed a $65M antitrust settlement accrual.
upward pressure as market prices in earnings beat and higher ARR.
EPS up 27% YoY, revenue up 27%, and non‑GAAP EPS up 44%; settlement accrual is a one‑time charge already accounted for.
Market effects
Credit‑scoring and analytics software sector may see renewed investor interest.
US market, given FICO is NYSE‑listed.
Moderate, as FICO serves worldwide financial institutions.
Counterpoint
The $65M antitrust settlement accrual hints at lingering legal risk that could affect future margins.
Key entities
- companyFICO
Global analytics software leader providing credit scoring and decisioning solutions.
