Fair Isaac Corporation (FICO) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue 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, with trailing twelve-month free cash flow at $961 million, up 28%.

• Record share repurchases in Q3 totaled $1.96 billion, with 1.75 million shares bought at an average price of $1,149 per share; nine-month repurchases reached $3.05 billion.

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

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

Financial highlights

• Scores segment revenue was $458.9 million, up 41% year-over-year; B2B scores up 49%, B2C scores up 5%.

• Mortgage origination revenues surged 97% year-over-year, accounting for 71% of B2B and 62% of total Scores revenue.

• Software segment revenue was $215.3 million, up 2% year-over-year; SaaS revenue grew 21%, on-premises declined 16%, professional services fell 24%.

• Platform ARR grew 62% to $413 million, surpassing non-platform ARR for the first time; total Software ARR was $816 million (+10%).

• Non-GAAP operating margin was 62%, up from 57% a year ago; operating income for Q3 was $362.6 million, up 38%.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $2.53 billion; GAAP net income to $850 million, GAAP EPS to $36.86, non-GAAP net income to $979 million, and non-GAAP EPS to $42.43.

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

• Management expects current cash, credit, and operating cash flows to cover capital needs for at least 12 months.

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