Fair Isaac Corporation’s Q2 results drew a negative market reaction following a revenue shortfall versus Wall Street expectations, despite notable year-on-year growth. Management attributed performance to strong momentum in its Scores segment, especially from business-to-business mortgage scoring, while the Software segment saw softer gains. CEO William Lansing cited the continued rollout of FICO Score 10T and early adoption of UltraFICO as key contributors, emphasizing, “FICO Score 10T delivers more than a 10% predictive advantage for first-time homebuyers.”
Is now the time to buy FICO? Find out in our full research report (it’s free for active Edge members).
Fair Isaac Corporation (FICO) Q2 CY2026 Highlights:
- Revenue: $674.2 million vs analyst estimates of $684.7 million (25.7% year-on-year growth, 1.5% miss)
- Adjusted EPS: $12.18 vs analyst estimates of $11.78 (3.4% beat)
- The company lifted its revenue guidance for the full year to $2.53 billion at the midpoint from $2.45 billion, a 3.3% increase
- Operating Margin: 53.8%, up from 48.9% in the same quarter last year
- Annual Recurring Revenue: $815.8 million (10.4% year-on-year growth, beat)
- Market Capitalization: $22.61 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Fair Isaac Corporation’s Q2 Earnings Call
- Manav Patnaik (Barclays) asked about the status of the Direct Licensing Program and reseller interest. CEO William Lansing said they are awaiting certification from a government-sponsored enterprise and expect strong uptake once approved.
- Jason Haas (Wells Fargo) questioned mortgage origination revenue deceleration and the impact of competitive scores. CFO Steven Weber explained that lower mortgage volumes, driven by rising rates, accounted for the slowdown but emphasized continued demand for FICO scores alongside competitors.
- Simon Alistair Clinch (Rothschild and Redburn) probed FICO’s ability to monitor potential volume loss to competitors. Lansing and Weber responded that real-time monitoring is difficult, but current volumes align with industry benchmarks and public data.
- Surinder Thind (Jefferies) asked about the next-generation platform’s adoption and migration strategy. Lansing confirmed growing customer migration and an active plan to retire legacy products, while prioritizing a smooth transition.
- Faiza Alwy (Deutsche Bank) requested clarification on the raised revenue guidance and the influence of licensing program timing. Weber indicated that improved mortgage market conditions and delayed direct program implementation accounted for the adjustment.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of lender adoption for FICO Score 10T and general availability of UltraFICO, (2) the certification and rollout of the Direct Licensing Program and its impact on pricing dynamics, and (3) continued migration to and expansion of the FICO Platform. The effectiveness of strategic partnerships and the evolution of regulatory and competitive landscapes will also be key signposts.
Fair Isaac Corporation currently trades at $1,053, down from $1,373 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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