Fair Isaac Corporation (FICO) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenues reached $674.2 million, up 26% year-over-year, with GAAP net income of $237.2 million, up 30%, and GAAP EPS of $10.45, up 41%. Non-GAAP net income was $277 million, up 31%, and non-GAAP EPS was $12.18, up 42%. Free cash flow for the quarter was $370.3 million.

• Over the last four quarters, free cash flow totaled $961 million, up 28%.

• Raised full-year 2026 guidance: revenue now expected at $2.53 billion, GAAP net income at $850 million, and GAAP EPS at $36.86. Non-GAAP net income guidance is $979 million and non-GAAP EPS at $42.43.

• Scores segment led growth, driven by 49% B2B mortgage revenue and successful adoption of FICO Score 10T.

• Record share repurchases in Q3, totaling $1.96 billion, including an accelerated share repurchase plan.

Financial highlights

• Scores segment revenues were $458.9 million, up 41% year-over-year; B2B revenues up 49%, B2C up 5%. Mortgage origination revenues up 97%.

• Software segment revenues were $215.3 million, up 2% year-over-year. SaaS revenues grew 21%, while on-premises and professional services declined.

• Platform ARR grew 62% to $413 million, now representing 51% of total ARR. Non-platform ARR declined 17%.

• Non-GAAP operating margin was 62%, up from 57% a year ago.

• Operating expenses were $312 million, up 8% year-over-year, driven by marketing and personnel.

Outlook and guidance

• Full-year revenue guidance raised to $2.53 billion, with GAAP net income of $850 million and GAAP EPS of $36.86. Non-GAAP net income guidance is $979 million and non-GAAP EPS at $42.43.

• Q4 operating expenses expected to be modestly higher due to marketing for the Accenture partnership and one-time restructuring charges.

• Near-term focus on deleveraging; additional share repurchases unlikely in Q4 as cash will be used to pay down debt.

• Management expects current cash, credit, and operating cash flows to be sufficient for capital needs for at least the next 12 months.

• No significant debt maturities due in the next 12 months; $300 million in term loan principal payments scheduled.