FICO US S&P 500Russell 1000 Earnings call · transcribed from the recording
Fair Isaac (FICO) · Q2 2026 results and valuation
Share price: $728.85 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 29 Jul 2026 and 28 Apr 2026
Net income down 10.3% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−10.3%
Net income vs Q1 2026
Guidance raised
Net income 237.2M vs 264.5M
Revenue −2.5%
Against the same quarter last year (Q2 2025) it is +30.5%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
Less upbeat than 63% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Over the last 4 quarters, Fair Isaac delivered $961 million in free cash flow.
Valuation
Is Fair Isaac undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 13.1% growth a year (3-year revenue growth), the model's fair value is $809.79 a share — the stock trades 10% below it. Today's price assumes 12.0% growth a year.
Current price
$728.85
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.0% for 10 yrs
Fair value / share
$809.79
Buy below
$607.34
Price vs fair value
Undervalued 10%
Price vs buy-below price
Overvalued 20%
Read between the lines
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Guidance
Fair Isaac expects fourth quarter interest expense to be higher than in the third quarter.
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Guidance ↑
With another strong quarter, Fair Isaac is increasing its fiscal 2026 guidance.
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Fading
Fair Isaac is in deep discussion with the other 2 and fully anticipate that all 5 of the big resellers will be able to provide the direct license program.
Source quote
“We are in deep discussion with the other 2 and fully anticipate that all 5 of the big resellers will be able to provide the direct license program. So we have 3 of the top 5 major resellers signed up. We also see a great deal of interest from the lender community for this performance-based pricing model.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Excluding migrations, platform ARR growth was in the mid-30% range, reflecting strong execution in new customer wins as well as expanded use cases and volumes from existing customers.”
“For the first time, platform ARR dollars exceed non-platform ARR dollars, marking an important milestone that reflects the successful execution of our long-term strategy and the returns we are realizing...”
“Year-over-year platform revenues grew 66%, driven by success in our land and expand strategy.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 674.2M | 691.7M | −2.5% | 536.4M | +25.7% |
| Gross profit | 587.2M | 600.5M | −2.2% | 448.8M | +30.8% |
| Operating income | 362.6M | 402.5M | −9.9% | 262.5M | +38.1% |
| Net income | 237.2M | 264.5M | −10.3% | 181.8M | +30.5% |
| EPS | 10.45 | 11.14 | −6.2% | 7.40 | +41.2% |
| P/E today 19.4 | 34.6 | 33.8 | +0.8 | 71.5 | −36.9 |
Topics
Most discussed now
- GAAP net income guidance is now $850 million, with GAAP earnings per share of $36.86, an increase of 30% and...
- Fair Isaac's analysis shows that 79% of nonprime applicants with a history of positive account balances saw higher scores under…
- Fair Isaac is IP-rich and distribution poor and it has always had so much more IP than it can sell with its direct...
- Results included 66% platform revenue growth and a 25% decline in non-platform revenue.
- Including its accelerated share repurchase plan, Fair Isaac bought back $1.96 billion or 1.705 million shares at an average price of...
Faded since Q1 2026
- Dropped The event brings together customers and partners from around the world to explore how real-time scalable decision-making is transforming…
- Dropped That's the historical way Fair Isaac has always charged for its IP.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Restructuring costs · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Other events · SEC 8-K
- Other events · SEC 8-K