FICO · Fair Isaac Corporation

Fair Isaac Corporation delivered robust Q2 fiscal 2026 results, with revenue surging 39% to $691.7 million, propelled by explosive 60% growth in Scores revenues to $475.0 million. This segment's strength stemmed from 72% B2B revenue expansion, fueled by higher mortgage origination scores unit pricing and increased volumes, alongside 5% B2C growth from indirect channel partners. Software revenues grew more modestly 7% to $216.7 million, supported by 10% year-over-year Software ARR increase, driven by 49% platform ARR growth despite an 8% non-platform decline. Retention metrics underscored platform momentum, with total Software Dollar-Based Net Retention at 109%, platform at 136%, and non-platform at 90%. GAAP operating income rose to $402.5 million from $245.6 million, reflecting strong margin expansion amid controlled operating expenses. Net cash from operations jumped to $223.4 million, enabling $214.3 million free cash flow. CEO Will Lansing highlighted continued revenue and earnings growth, prompting an upward revision to full-year FY2026 guidance: revenues to $2.45 billion (from $2.35 billion), GAAP net income to $825 million (from $795 million), and GAAP EPS to $35.60 (from $33.47). Non-GAAP targets also lifted, with EPS now at $40.45. Balance sheet shows cash at $219.4 million, but elevated long-term debt of $3.64 billion and stockholders' deficit of $(2.10) billion signal leverage focus. Investors benefit from sustained profitability and raised outlook amid analytics demand.