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olivLaw · US equity research

FICO FICO

Services-Business Services, NEC · SIC 7389 · Vertical: Services-Business Services, NEC (SIC 7389)

724.19USD+1.82% · 1 dayClose 02 Nov 2026

FICO is a global analytics software leader best known for the FICO Score, the standard US measure of credit risk. The company could benefit from rapid growth in its Scores segment, which reached 1.2 billion dollars in fiscal 2025, but it also carries substantial debt and depends heavily on the US mortgage market and the banking sector.

At the close of 02 Nov 2026, FICO (FICO) stock was 724.19 USD (+1.82% on the day), with market capitalisation 15.6 bn USD, P/E 20.9 on diluted EPS of 34.62 USD over the last 12 months, dividend yield 0.02%, beta 0.82, 52-week range 592.47–1,844.98 USD. Latest reported quarter (Q3 2026): revenue of 674.2 m USD (+25.7% YoY), net income of 237.2 m USD (+30.5% YoY), diluted EPS 10.45 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
15.6 bn USD
shares as of 17 Jul 2026
P/E (TTM)
20.9
Diluted EPS TTM 34.62 · TTM to 30 Jun 2026
E/P (TTM)
4.78%
TTM to 30 Jun 2026
Dividend yield
0.02%
DPS 12m 0.12
Beta (2y)
0.82
Volatility (1y) 66%
52-week range
592.471,844.98

Price history

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Technical reading

RSI (14)
42.9
weak (30–45)
Bollinger (20, 2)
644.94 – 828.38
in the lower half of the band · %B 0.43 · band width 24.9%
SMA 50 / 200
862.84 / 1,118.78
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-32.93 / -37.69
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+9.5%−2.3%+11.9 pp—
3 months−30.7%−0.8%−30.0 pp—
6 months−31.7%+4.7%−36.4 pp—
Year to date−57.2%+10.2%−67.3 pp—
1 year−56.4%+10.3%−66.6 pp−5.5%
3 years−22.2%+73.0%−95.2 pp+10.9%
5 years+88.6%+61.8%+26.8 pp—
Max drawdown (1y)
−67.9%
12 Dec 2025 → 30 Sept 2026
Max drawdown (5y)
−75.1%
26 Nov 2024 → 30 Sept 2026
Compound annual growth (5y)
+13.5%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Jun 2026

Revenue
674.2 m USD
+25.7% YoY
Net income
237.2 m USD
+30.5% YoY
Diluted EPS
10.45
+41.2% YoY
net / operating
35.2% / 53.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue453.8 m440.0 m498.7 m536.4 m515.8 m512.0 m691.7 m674.2 m
Cost of revenue89.6 m87.3 m87.6 m87.6 m91.2 m87.3 m91.2 m87.0 m
Research & development44.2 m45.1 m45.0 m47.2 m51.0 m49.9 m53.9 m53.7 m
SG&A122.8 m128.0 m120.4 m139.1 m125.5 m140.7 m144.1 m170.8 m
Operating income197.2 m179.5 m245.6 m262.5 m237.2 m234.0 m402.5 m362.6 m
Depreciation & amortisation3.8 m3.5 m3.4 m ≈4.0 m ≈4.0 m4.0 m3.9 m ≈4.2 m ≈
Interest expense28.5 m29.5 m31.4 m32.9 m39.9 m42.0 m44.6 m59.9 m
Pre-tax income171.4 m150.1 m213.0 m237.0 m202.5 m191.9 m356.0 m314.7 m
Income tax35.7 m-2.4 m50.4 m55.2 m47.4 m33.6 m91.6 m77.5 m
Net income135.7 m152.5 m162.6 m181.8 m155.0 m158.4 m264.5 m237.2 m
Diluted EPS5.44 ≈6.146.597.406.42 ≈6.6111.1410.45
Operating cash flow226.5 m194.0 m74.9 m ≈286.2 m ≈223.7 m174.1 m223.4 m ≈380.4 m ≈
Capex1.8 m841.0 k2.1 m ≈1.8 m ≈4.2 m226.0 k266.0 k ≈863.0 k ≈
Share repurchases323.5 m162.6 m217.2 m ≈486.8 m ≈548.0 m171.2 m605.4 m ≈2.3 bn ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 0 percentile of its own 43-quarter history (min 29.0, median 45.6, max 95.0; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue1.0 bn1.2 bn1.3 bn1.3 bn1.4 bn1.5 bn1.7 bn2.0 bn
Revenue YoY+10.8%+12.4%+11.6%+1.7%+4.6%+9.9%+13.5%+15.9%
Net income126.5 m192.1 m236.4 m392.1 m373.5 m429.4 m512.8 m651.9 m
Net income YoY−5.2%+51.9%+23.1%+65.8%−4.7%+14.9%+19.4%+27.1%
Diluted EPS4.066.347.9013.4014.1816.9320.4526.54
Diluted EPS YoY−1.9%+56.2%+24.6%+69.6%+5.8%+19.4%+20.8%+29.8%
net %12.3%16.6%18.3%29.8%27.1%28.4%29.9%32.7%
Free cash flow191.8 m236.4 m342.9 m416.2 m503.4 m464.7 m624.1 m769.9 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 30 Sept 2025

Cash
134.1 m USD
Financial debt
3.1 bn USD
Net debt
2.9 bn USD
Equity
-1.7 bn USD
Total assets
1.9 bn USD
Debt / equity
unavailable
Current ratio
0.83x
ROE
unavailable
ROA
36.4%
FCF margin
38.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
1.5 bn
2024
1.7 bn
2025
2.0 bn

SEC (XBRL)· 07 Nov 2025verified

Cost of revenue
2023
311.1 m
2024
348.2 m
2025
353.7 m

SEC (XBRL)· 07 Nov 2025verified

Gross profit
2023
1.2 bn ≈
2024
1.4 bn ≈
2025
1.6 bn ≈

SEC (XBRL)· 07 Nov 2025derived

Research & development
2023
160.0 m
2024
171.9 m
2025
188.3 m

SEC (XBRL)· 07 Nov 2025verified

SG&A
2023
400.6 m
2024
462.8 m
2025
513.0 m

SEC (XBRL)· 07 Nov 2025verified

Operating income
2023
642.8 m
2024
733.6 m
2025
924.9 m

SEC (XBRL)· 07 Nov 2025verified

Depreciation & amortisation
2023
14.6 m
2024
13.8 m
2025
15.0 m

SEC (XBRL)· 07 Nov 2025verified

EBITDA
2023
657.5 m ≈
2024
747.5 m ≈
2025
939.8 m ≈

SEC (XBRL)· 07 Nov 2025derived

Interest expense
2023
95.5 m
2024
105.6 m
2025
133.6 m

SEC (XBRL)· 07 Nov 2025verified

Pre-tax income
2023
553.6 m
2024
642.0 m
2025
802.6 m

SEC (XBRL)· 07 Nov 2025verified

Income tax
2023
124.2 m
2024
129.2 m
2025
150.6 m

SEC (XBRL)· 07 Nov 2025verified

Net income
2023
429.4 m
2024
512.8 m
2025
651.9 m

SEC (XBRL)· 07 Nov 2025verified

Diluted EPS
2023
16.93
2024
20.45
2025
26.54

SEC (XBRL)· 07 Nov 2025verified

Weighted average diluted shares
2023
25.4 m
2024
25.1 m
2025
24.6 m

SEC (XBRL)· 07 Nov 2025verified

Balance sheet · USD

Cash
2023
136.8 m
2024
150.7 m
2025
134.1 m

SEC (XBRL)· 07 Nov 2025verified

Receivables
2023
387.9 m
2024
426.6 m
2025
529.1 m

SEC (XBRL)· 07 Nov 2025verified

Current assets
2023
556.4 m
2024
617.4 m
2025
705.2 m

SEC (XBRL)· 07 Nov 2025verified

Property, plant & equipment, net
2023
11.0 m
2024
38.5 m
2025
67.7 m

SEC (XBRL)· 07 Nov 2025verified

Goodwill
2023
773.3 m
2024
782.8 m
2025
783.3 m

SEC (XBRL)· 07 Nov 2025verified

Intangibles (excl. goodwill)
2023
917.0 k
2024
0
2025
—

SEC (XBRL)· 06 Nov 2024verified

Total assets
2023
1.6 bn
2024
1.7 bn
2025
1.9 bn

SEC (XBRL)· 07 Nov 2025verified

Accounts payable
2023
19.0 m
2024
22.5 m
2025
32.3 m

SEC (XBRL)· 07 Nov 2025verified

Short-term debt
2023
50.0 m
2024
15.0 m
2025
399.5 m

SEC (XBRL)· 07 Nov 2025verified

Long-term debt
2023
1.8 bn
2024
2.2 bn
2025
2.7 bn

SEC (XBRL)· 07 Nov 2025verified

Current liabilities
2023
367.7 m
2024
380.3 m
2025
849.2 m

SEC (XBRL)· 07 Nov 2025verified

Total liabilities
2023
2.3 bn
2024
2.7 bn
2025
3.6 bn

SEC (XBRL)· 07 Nov 2025verified

Equity
2023
-688.0 m †
2024
-962.7 m †
2025
-1.7 bn †

SEC (XBRL)· 07 Nov 2025verified

Cash flow · USD

Operating cash flow
2023
468.9 m
2024
633.0 m
2025
778.8 m

SEC (XBRL)· 07 Nov 2025verified

Capex
2023
4.2 m
2024
8.9 m
2025
8.9 m

SEC (XBRL)· 07 Nov 2025verified

Free cash flow
2023
464.7 m ≈
2024
624.1 m ≈
2025
769.9 m ≈

SEC (XBRL)· 07 Nov 2025derived

Investing cash flow
2023
-16.0 m
2024
-28.0 m
2025
-43.7 m

SEC (XBRL)· 07 Nov 2025verified

Financing cash flow
2023
-455.0 m
2024
-592.9 m
2025
-750.3 m

SEC (XBRL)· 07 Nov 2025verified

Share repurchases
2023
405.5 m
2024
821.7 m
2025
1.4 bn

SEC (XBRL)· 07 Nov 2025verified

Computed indicators

Growth

Revenue growth (YoY)
15.9%
computed by olivLawFY 2025
Revenue CAGR 3Y
13.1%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
9.0%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
26.1%
computed by olivLawFY 2025
Net income growth (YoY)
27.1%
computed by olivLawFY 2025
Net income CAGR 3Y
20.4%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
22.5%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
29.8%
computed by olivLawFY 2025
EPS CAGR 3Y
23.2%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
27.4%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
23.4%
computed by olivLawFY 2025

Profitability

Gross margin
85.1%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
52.3%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
51.7%
computed by olivLawTTM to 30 Jun 2026
Net margin
34.1%
computed by olivLawTTM to 30 Jun 2026
FCF margin
41.6%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
41.8%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
95.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
5.3 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
4.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
6.6x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
1.2x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.3x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
1.0 bn USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
5.5 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
996.0 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
122.2%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
80.0%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
80 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
29 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
15.6 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
21.0 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
19.2x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
20.9x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
4.8%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
6.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
16.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBIT
17.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/Sales
8.8x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
15.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
6.4%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
0.0%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
23.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 70 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

724.19 USD

02 Nov 2026Source: olivLaw, closing series

Market cap: 15.6 bn USD

Key indicators

Market capitalisation
15.6 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
20.9x
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
16.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
34.1%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
15.9%
computed by olivLawFY 2025
Dividend yield
0.0%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

33/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 17 Jul 2026
Source: SEC (XBRL)published 29 Jul 2026
verified 2805derived 210

Score by group

  • Quality92
  • Growth100
  • Valuation57
  • Balance sheet44
  • Returns100

Estimated value range

Low
470.81
USD per share
Mid
768.73
USD per share
High
1,014.64
USD per share
Price: 724.19 USD
The price is within the range
Potential to the central value: 6.2% (value / price − 1)
Margin of safety: 5.8% (1 − price / value)
Agreement between methods: medium · 4 methods used · 3 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.05 – 1,413.66 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)735.80 – 1,413.66 (Mid 983.74)
    WACC 8.1% · starting FCFF 1.1 bn USD · terminal value share of EV 78%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 2.5%
  • Peers: EV/EBITDA493.79 – 849.98 (Mid 676.27)
    10 companies used · median multiple 15.9x · quartiles 12.8x – 18.9x
    BR, CPAY, EBAY, FIS, GPN, MELI, MSCI, PYPL, RBA, UBER
  • Peers: P/E447.83 – 1,179.31 (Mid 861.19)
    11 companies used · median multiple 24.9x · quartiles 12.9x – 34.1x
    BR, CPAY, EBAY, FIS, FISV, MA, MELI, MSCI, PYPL, RBA, UBER
  • Dividend discount (DDM)1.05 – 1.41 (Mid 1.21)
Multiple comparisons use the SIC vertical: Services-Business Services, NEC (SIC 7389)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 70/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality34.1%83 (vs peers)7%
FCF conversion · Quality122.2%100 (on a fixed band)7%
Revenue CAGR 3Y · Growth13.1%100 (on a fixed band)10%
EPS CAGR 3Y · Growth23.2%100 (on a fixed band)10%
Net debt / EBITDA · Balance sheet4.3x27 (vs peers)12%
Interest coverage · Balance sheet6.6x79 (on a fixed band)7%
Current ratio · Balance sheet1.2x32 (on a fixed band)5%
P/E (TTM) · Valuation20.9x55 (vs peers)12%
EV/EBITDA · Valuation16.7x40 (vs peers)12%
FCF yield · Valuation6.4%80 (on a fixed band)10%
Shareholder yield (distributions) · Returns23.0%100 (on a fixed band)7%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet44/100 · 3/3 factors with a value
  • Growth100/100 · 2/2 factors with a value
  • Quality92/100 · 2/3 factors with a value
  • Returns· partial100/100 · 1/2 factors with a value
  • Valuation57/100 · 3/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

FAIR ISAAC CORP (FICO). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 2.0 bn USD in 2025; YoY growth 15.9%; net margin 34.1%; net debt/EBITDA 4.3x.

The estimated value range is 470.81–1,014.64 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 768.73 USD, the price of 724.19 USD leaves a potential of 6.2% (value / price − 1) and a margin of safety of 5.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 70/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 34.1%
  • FCF conversion: 122.2%
  • Revenue CAGR 3Y: 13.1%
  • EPS CAGR 3Y: 23.2%
  • Interest coverage: 6.6x
  • FCF yield: 6.4%
  • Shareholder yield (distributions): 23.0%

What contradicts it

  • Net debt / EBITDA: 4.3x

Not assessed (insufficient data or a ratio without meaning): ROIC, Payout ratio (FCF).

Versus the vertical median

Services-Business Services, NEC (SIC 7389) · same industry (4-digit SIC) · compared with 12 companies

Only companies with a capitalisation between 2.2 bn and 142.2 bn (within 8× of the company's); 87 of the vertical were left out.

Multiples and returns vs the median

P/E
20.9x
vertical median 24.9x
below median (−15.9%)
EV/EBITDA
16.7x
vertical median 15.9x
above median (+5.2%)
P/S
6.5x
vertical median 2.6x
above median (+153.6%)
P/B
—
vertical median 4.0x
ROE
—
vertical median 27.5%
Net margin
34.1%
vertical median 16.0%
above median (+113.0%)
EBIT margin
51.7%
vertical median 17.2%
above median (+200.4%)
Revenue YoY
15.9%
vertical median 8.2%
above median (+93.2%)
Net debt/EBITDA
4.3x
vertical median 2.0x
above median (+114.8%)
Dividend yield
0.0%
vertical median 1.0%
below median (−98.4%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
UBERUber Technologies, Inc136.3 bn14.738.4%17.3%+18.3%−24% / +18%
MELIMercadoLibre, Inc.85.0 bn45.627.5%5.3%+39.1%−19% / +3%
EBAYeBay Inc.53.1 bn26.346.6%16.9%+7.9%+46% / +195%
PYPLPayPal Holdings, Inc.48.8 bn11.223.8%13.8%+4.3%−6% / +2%
MSCIMsci Inc.45.6 bn33.7—40.3%+9.7%+13% / +22%
FISVFiserv, Inc.27.6 bn10.010.7%13.4%+3.6%−16% / −60%
CPAYCorpay, Inc26.9 bn24.930.5%22.7%+13.9%+38% / +70%
GPNGlobal Payments Inc.26.4 bn—-4.1%-9.1%−0.4%+32% / −14%
BRBroadridge Financial Solutions, Inc.21.0 bn19.240.9%15.0%+8.5%−19% / −5%
FISFidelity National Information Services, Inc.20.7 bn6.222.3%27.6%+5.4%−39% / −32%
RBARB Global, Inc17.3 bn39.28.8%10.0%+7.2%−5% / +47%
FICOFair Isaac Corp15.6 bn20.9—34.1%+15.9%−56% / −22%
MAMastercard Incorporated—34.4231.4%46.7%+16.4%+20% / +59%

1- and 3-year price returns: for FICO from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

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Bull
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Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
506.83
Total return -30% · Per year -30%
892.64
Total return 23% · Per year 23%
1,339.91
Total return 85% · Per year 85%
3 years
580.25
Total return -20% · Per year -7%
1,141.19
Total return 58% · Per year 16%
1,867.86
Total return 158% · Per year 37%
5 years
664.31
Total return -8% · Per year -2%
1,458.95
Total return 101% · Per year 15%
2,603.82
Total return 260% · Per year 29%
What moves the 3-year price the most
  • Exit P/E± 285.30
  • Net margin± 199.71
  • Annual revenue growth± 151.49
  • Annual dilution± 16.78

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

FICO is a global analytics software leader best known for the FICO Score, the standard US measure of credit risk. The company could benefit from rapid growth in its Scores segment, which reached 1.2 billion dollars in fiscal 2025, but it also carries substantial debt and depends heavily on the US mortgage market and the banking sector 12.

SWOT

Strengths

  • The FICO Score is the de facto standard for US credit risk and is used by most large banks 13.
  • The company has a broad customer base across more than 80 countries and a considerable patent portfolio 3.
  • Revenue and profit have grown quickly in recent quarters, and operating cash generation is strong 23.

Weaknesses

  • Revenue depends heavily on the banking sector, which accounted for 92% of revenue in fiscal 2025 1.
  • Debt has grown substantially and the company relies on external financing for share repurchases 2.
  • Non-platform ARR in the Software segment is declining, showing dependence on legacy products 3.

Opportunities

  • Expanding FICO Platform to more customers and cross-selling could accelerate growth in the Software segment 12.
  • Scores built on BNPL, rental or bank account data could extend credit access to people with limited history 1.
  • International markets where FICO Scores are available offer long-term growth potential 1.

Threats

  • The decision to allow other scores in mortgages could reduce the share held by the FICO Score in the US 1.
  • Analytics software vendors and credit agencies can compete directly, and large clients have strong bargaining power 1.
  • An economic downturn or banking crisis could reduce credit volumes and demand for the company's products 1.

Risks

  • Dependence on FICO Score use in mortgageshigh

    A removal or reduction in use of the FICO Score by Fannie Mae and Freddie Mac would have a significant effect on revenue 1.

  • Concentration in the banking sectorhigh

    Most revenue comes from banks, and a crisis in the sector could reduce sales directly 1.

  • Higher indebtednessmedium

    Total debt has risen considerably, which could limit financial flexibility if revenue falls 2.

  • Execution of the Software strategymedium

    If the transition to FICO Platform falls short, growth in the Software segment could remain slow 1.

  • Competition and technological changemedium

    New AI technologies or free credit scores could reduce demand for paid products 1.

Investment thesis

What would need to be true (bull case)

  • Revenue and profit growth in the third quarter of fiscal 2026 and the raised guidance point to solid momentum 3.
  • The FICO Score holds a dominant position in the US, an advantage that competitors find hard to replicate 13.
  • Platform ARR growth and the net retention rate in Software suggest customers are expanding their use of the products 23.

What would break the thesis

  • Dependence on the mortgage market and on regulatory decisions could quickly affect Scores revenue 1.
  • Rising debt and share repurchases could reduce the financial cushion if economic activity slows 2.
  • The decline in non-platform ARR shows that part of the software base is shrinking 3.

What to watch

  • Development of FICO Platform ARR and the Software dollar-based net retention rateQ4 2026
  • Delivery of the raised fiscal 2026 revenue and profit guidance2026
  • FHFA decisions on credit score use in mortgages2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The company raised its fiscal 2026 revenue guidance to 2.53 billion dollars 3. FICO Platform, a modular software offering, is the central strategy of the Software segment, and its ARR represented 35% of total software ARR at fiscal 2025 year end 1. The company states that its scores are used by most major banks and card issuers in the US, which makes Scores a central revenue engine 13.

Revenue is concentrated: in fiscal 2025, 92% of revenues came from sales to the banking industry 1. The company also depends on a relatively small number of customers and on its contracts with the consumer reporting agencies 1.

Segments

Scores

The Scores segment includes the FICO Score used in most US credit decisions, along with industry scores and alternative-data scores that use rental, bank account or BNPL data 12. Segment revenue grew in fiscal 2025, and in the latest quarter it was driven mainly by a higher unit price on mortgage origination scores and royalties on B2C scores 3.

Market context

FICO's core market consists of banks, card issuers, credit bureaus and financial service providers in more than 80 countries 13. The US mortgage market is a major factor for the Scores segment, since Fannie Mae and Freddie Mac require FICO Scores for mortgages they purchase 1. Software demand depends on how far banks modernize their decision and risk processes, and the focus on large customers makes the market concentrated 1.

Growth in Scores depends largely on mortgage volumes and unit prices, and during economic stress demand for scores and software could fall 1. The company also operates in international markets where it is less well known, which adds risk 1.

Trends

  • Mortgage volumes and score pricingtailwind

    Scores revenue grew strongly in the third quarter of fiscal 2026, supported by higher unit prices on mortgage scores and origination volumes 3.

  • Migration to FICO Platformmixed

    The company is progressively moving software products onto FICO Platform, and platform ARR is growing quickly while legacy products shrink 23.

  • Mortgage score regulationheadwind

    The July 2025 FHFA decision allowing originators to choose the credit score could reduce demand for the FICO Score 1.

  • Rising debt and share repurchasesheadwind

    Total debt rose to 5.6 billion dollars, and share repurchases reached 3.1 billion dollars in the first nine months of fiscal 2026 2. This capital allocation can support per-share metrics but raises financial risk 2.

Competitive position

Competition includes in-house analytics teams, providers of scoring models, fraud solution providers, credit reporting agencies that offer their own scores, and software vendors for predictive analytics and decision management 1. The company also expects competition from customers that build their own scoring models 1.

In the Software segment, competition also comes from alternative technologies such as biometric authentication and other card fraud prevention methods 1. These could reduce market share if clients choose cheaper or differently integrated solutions 1.

  • Experian

    Consumer reporting agency that distributes the FICO Score and competes through its own scores.

  • TransUnion

    Consumer reporting agency and distribution partner that could also compete through its own scores.

  • Equifax

    Consumer reporting agency that distributes FICO Scores and offers its own analytics services.

  • Fraud solution and predictive analytics providers

    Software companies offering fraud detection and predictive modeling solutions.

News & filings

In the press

SEC filings

  • Current report06 Oct 2026
    Exit or disposal costs
  • Quarterly report29 Jul 2026
  • Current report29 Jul 2026
    Results of operations · Financial statements and exhibits
  • Current report08 Jun 2026
    Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
  • Quarterly report28 Apr 2026
  • Current report28 Apr 2026
    Results of operations · Financial statements and exhibits
  • Current report20 Mar 2026
    Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
  • Current report11 Mar 2026
    Other events · Financial statements and exhibits
  • Current report11 Mar 2026
    Other events · Financial statements and exhibits
  • Current report05 Mar 2026
    Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits

Sources

  1. [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / FICO · 07 Nov 2025
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / FICO · 29 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / FICO · 29 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.

FICO (FICO): stock, results, valuation and forecast · olivLaw