Fair Isaac Q3 revenue rises but slightly misses estimates, leaving investors unimpressed

Fair Isaac

29/07/2026 21:44

Overview
Analytics software firm's fiscal Q3 revenue rose 26% yr/yr, slightly missing analyst expectations
Adjusted EPS for fiscal Q3 beat analyst expectations
Company raised full-year guidance for revenue and earnings

Outlook
Fair Isaac raises fiscal 2026 revenue guidance to $2.53 bln from $2.45 bln
Company now sees fiscal 2026 GAAP EPS at $36.86, up from $35.60
Fair Isaac lifts fiscal 2026 non-GAAP EPS forecast to $42.43 from $40.45

Result Drivers
B2B SCORES GROWTH - Revenue from business-to-business scoring solutions rose 49%, mainly due to higher mortgage origination scores unit prices
B2C SCORES ROYALTIES - Business-to-consumer scores revenue increased 5%, mainly from higher royalties on scores sold indirectly to consumers
PLATFORM SOFTWARE ARR - Platform software annual recurring revenue rose 62%, offsetting a 17% decline in non-platform ARR

Company press release: ID:nBwb55Kmda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$674.19 mln
$678.87 mln (18 Analysts)
Q3 Adjusted EPS
Beat
$12.18
$11.74 (18 Analysts)
Q3 Net Income
 
$237.17 mln
 
Q3 Operating income
 
$362.63 mln
 
Q3 Pretax Profit
 
$314.66 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Fair Isaac Corp is $1,521.50, about 13.9% above its July 28 closing price of $1,336.22
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
July 28 - TransUnion beats Q2 revenue estimates, raises 2026 revenue growth outlook
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July 29 - Verisk Analytics quarterly profit falls as expenses rise

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)