$FICO · FAIR ISAAC CORP
Fair Isaac filed its FY2026 10-K (year ended September 30, 2026). Total revenues grew 27.3% to $2.535B from $1.991B, driven by the Scores segment, which rose 41% to $1.652B. Net income reached $835M ($36.32 diluted EPS) versus $652M ($26.54) a year earlier, and operating margin was 49.9%. The company continued heavy buybacks, with treasury stock at cost rising to $10.54B and stockholders' deficit widening to $3.87B.
- Scores segment revenue jumped 41% to $1.652B, with segment operating margin up to 90% from 88%.
- Total operating income rose 37% to $1.266B from $925M.
- Net income grew to $835M from $652M; diluted EPS $36.32 vs $26.54.
- Treasury stock at cost reached $10.54B, driving stockholders' deficit to $3.87B.
- Restructuring charges rose to $27.3M from $10.9M.
Shares fell 3.15% to $685.10 in the regular session despite strong results, though the price is +0.25% versus filing time, suggesting the decline predates or is unrelated to the 10-K.
FICO's Scores segment delivered 41% growth and 90% margins, confirming exceptional pricing power even as aggressive buybacks deepen its negative equity position.
FICO's Scores segment margin expansion to 90% underscores its pricing power in mortgage origination scoring, a key driver as FHFA pushes modernized credit score adoption.
Scores revenue concentration in mortgage origination and reliance on the three consumer reporting agencies as distribution intermediaries expose results to housing-market and channel shifts.