Key statistics

Is FICO a good stock to buy in 2026?

Fair Isaac Corporation (FICO) presents a compelling case with a P/E ratio of 32.7x, significantly below the Software – Application sector average of 69.7x, suggesting a relative discount. Despite a discounted cash flow (DCF) valuation of $512.91 which indicates the stock may be overvalued by -51.2% at current prices, a strong 83.3% of analysts rate FICO stock as a Buy. Investors considering FICO stock should weigh its strong market position and analyst confidence against the DCF valuation signal.

2026 FICO price scenarios

Based on analyst consensus of $1593.56 from 18 analysts. Not a prediction by Alert Invest.

About Fair Isaac Corporation (FICO)

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Scores and Software. The Software segment offers pre-configured decision management solution designed for various business problems or processes, such as marketing, account origination, customer management, customer engagement, fraud detection, financial crimes compliance, collection, and marketing, as well as associated professional services.

Led by CEO William J. Lansing, Fair Isaac Corporation employs 3,718 dedicated professionals who are at the forefront of data analytics and decision management. The company’s distinctive strength lies in its ubiquitous FICO Score, which has become a global standard in credit assessment. Beyond its scoring prowess, FICO leverages its deep expertise to provide sophisticated software solutions that help businesses automate and optimize critical decisions across customer lifecycle management, fraud detection, and regulatory compliance, solidifying its position as a vital technology partner to financial institutions worldwide.

FICO competitive moat and business analysis

Fair Isaac Corporation (FICO) possesses a formidable competitive advantage, primarily anchored by its proprietary FICO Score which is deeply embedded within the global financial ecosystem. This market-dominant position contributes to an exceptional gross margin of 84.16% and a robust net margin of 33.67%, indicating strong pricing power and efficient operations. While Return on Equity (ROE) and Return on Invested Capital (ROIC) are reported as N/A in the available data, the high margins suggest efficient capital utilization in its core software and analytics business. The extensive network effects of the FICO Score, where its widespread adoption reinforces its value, create significant barriers to entry for competitors. Furthermore, the high switching costs for banks and lenders to migrate from FICO’s integrated decision management platforms further solidify its moat.

FICO’s business operations are strategically divided into two core segments: Scores and Software. The Scores segment provides credit origination, customer management, and other analytic scoring products, forming the foundational revenue stream. The Software segment offers pre-configured decision management solutions designed for various business challenges, including marketing, fraud detection, and regulatory compliance, along with professional services. As of fiscal year 2025 (ending September 30, 2025), FICO’s reported revenue was $1.99 billion. Geographically, while specific breakdowns for FY2025 were not provided in detail, FICO maintains a global footprint, serving clients across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region, indicating diversified revenue exposure.

FICO’s competitive moat appears to be strengthening, driven by its consistent innovation and the increasing reliance on data-driven decisions across industries. The company’s robust revenue growth of 15.9% year-over-year demonstrates strong demand for its analytics and software solutions. This growth trajectory suggests that FICO is not only defending its existing market share but also expanding its influence in new applications and regions. The continuous evolution of its FICO Falcon Platform for fraud detection and the FICO Platform for customer engagement underscores its commitment to maintaining technological leadership and relevance in a dynamic market. This sustained investment in product development is critical for extending its competitive advantage.

When evaluating FICO stock, it’s beneficial to compare its position against key peers in the technology and software application sectors. While FICO specializes in credit scoring and decision management, companies like CLS, CTSH, and GRMN offer a broader perspective on the technology landscape. This comparison helps investors assess whether FICO’s valuation and growth prospects align with broader industry trends. Examining FICO vs CLS, FICO vs CTSH, and FICO vs GRMN provides insights into relative strengths in areas like market penetration, R&D investment, and overall financial performance. Such peer analysis is crucial for understanding whether FICO’s unique business model translates into superior or comparable investment attributes within the competitive technology sector.

Fair Isaac Corporation analyst rating

Based on 18 analysts. 83.3% rate FICO Buy or Strong Buy.

An 83.3% Buy rating among 18 analysts is a notably strong consensus, particularly within the Technology sector where diverse business models can often lead to more varied opinions. This high level of confidence from covering analysts suggests a robust outlook for FICO stock, underpinning its investment appeal.

Is FICO undervalued or overvalued?

Assessing FICO stock valuation reveals a mixed but intriguing picture. The company’s P/E ratio stands at 32.7x, which is significantly lower than the Software – Application sector average of 69.7x. This suggests that FICO may be trading at a discount relative to its industry peers based on earnings, potentially making it an attractive consideration for investors seeking value in the technology space.

However, when looking at the discounted cash flow (DCF) model, FICO appears to be overvalued, with a fair value of $512.91 representing a -51.2% discount to its current price. Other metrics provide additional context: the P/S ratio of 10.81x indicates that the market assigns a premium to FICO’s sales, reflecting its strong brand and recurring revenue streams. The negative P/B ratio of -11.82x typically suggests negative book value, often a result of aggressive share buybacks exceeding retained earnings, which can distort traditional book value analysis. Despite these divergences, the consensus analyst target of $1593.56 implies substantial upside, highlighting that many market participants believe FICO stock holds further growth potential.

FICO financial health & key metrics

For value investors, FICO stock presents a mixed financial picture. On one hand, its P/E ratio of 32.7x appears attractive compared to the sector average of 69.7x, indicating a potential discount. The company also boasts exceptional profitability with a net margin of 33.67% and strong revenue growth of 15.9%. However, the discounted cash flow (DCF) model suggests FICO is significantly overvalued by -51.2% at $512.91. While the negative debt-to-equity ratio signals low debt and a robust financial structure (likely due to share repurchases), the N/A for ROE/ROIC limits a full profitability assessment from a value perspective. Investors need to carefully weigh the company’s strong operational performance and relative P/E against the stark DCF valuation and the lack of clarity on equity-based returns.

Fair Isaac Corporation earnings history & next report

Fair Isaac Corporation reported EPS of $12.5, beating estimates by 13.33%. Next earnings: 2026-07-29 with EPS estimate of $11.62.

Fair Isaac Corporation’s recent earnings report saw EPS of $12.5, impressively beating estimates by 13.33%. Looking ahead, investors should closely monitor the next earnings release scheduled for July 29, 2026, where the EPS estimate stands at $11.62. Key aspects to watch include whether FICO can continue its streak of beating expectations, the guidance provided for future revenue and earnings growth, and any insights into the performance of its Software segment and international expansion efforts, which could further impact FICO stock performance.

FICO daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

FICO insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent FICO analyst rating changes

Fair Isaac Corporation stock news today

How does FICO compare to its peers?

When considering an investment in FICO stock, it’s insightful to examine how Fair Isaac Corporation stacks up against other players within the broader Technology sector, particularly those in the Software – Application industry or related IT services. While FICO operates in a specialized niche, comparing it with companies offering different but complementary services provides a valuable lens on market trends and relative strengths. Below, we compare FICO with three notable peers.

FAQ — Fair Isaac Corporation (FICO) stock