Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
FICO delivered exceptional Q2 FY2026 results with revenue surging 38.7% YoY to $691.7M and operating income jumping 63.8% to $402.5M, driven by strong pricing power and software segment momentum, though the balance sheet carries deeply negative stockholders' equity due to aggressive share buybacks and elevated long-term debt of $3.64B.
Revenue
$691.68M
+38.69% YoY
EPS (Diluted)
$11.14
+69.04% YoY
Operating Income
$402.46M
+63.84% YoY
Source: SEC XBRL
Fair Isaac (FICO) reported Q2 FY2026 revenue of $691.68M, up 38.7% year over year. Operating margin was 58.2%, up 8.9 points from 49.3% a year earlier. FICO's fiscal Q2 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 12.18 | 11.97 | Beat +1.8% |
| Mar 2026This filing | 12.50 | 11.20 | Beat +11.7% |
| Dec 2025 | 7.33 | 7.20 | Beat +1.8% |
| Sep 2025 | 7.74 | 7.49 | Beat +3.4% |
Adjusted (non-GAAP) EPS of $12.50 versus the $11.20 analyst consensus — a +11.7% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $11.14.
Compiled by AI from this SEC filing
Revenue grew 38.7% YoY to $691.7M in Q2 FY2026, a dramatic acceleration reflecting strong demand for FICO's scoring and software solutions. Cost of revenue grew only 4.1% YoY to $91.2M, indicating significant operating leverage as revenue scales.
Source: 10-Q Income Statement Data
Operating income surged 63.8% YoY to $402.5M, pushing the operating margin to 58.2% from 49.3% a year ago — an improvement of nearly 9 percentage points. This reflects disciplined cost management with SG&A and R&D each growing only ~19.7% against 38.7% revenue growth.
Source: 10-Q Income Statement Data
Fiscal year-to-date operating cash flow reached $397.4M, up 47.8% from $268.9M in the prior-year period, demonstrating the high cash-conversion quality of FICO's business model. Free cash flow remains robust after minimal capital expenditures reflected in investing cash outflows of only $21.1M YTD.
Source: 10-Q Cash Flow Data
FICO repurchased $776.6M in shares on a fiscal YTD basis, more than double the $379.7M repurchased in the same period last year (+104.5%), which is the primary driver of the deeply negative stockholders' equity of -$2.10B and rising long-term debt of $3.64B.
Source: 10-Q Balance Sheet & Cash Flow Data
Diluted EPS grew 69.0% YoY to $11.14, outpacing net income growth of 62.6% to $264.5M, as the share count has been meaningfully reduced through the company's sustained buyback program, amplifying per-share returns for remaining shareholders.
Source: 10-Q Income Statement Data
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
FICO's stockholders' equity stands at -$2.10B, deteriorating 87% YoY from -$1.12B, while long-term debt has grown 44.8% to $3.64B. This capital structure is entirely dependent on continued strong cash generation; any deterioration in earnings could create significant financial stress and limit strategic flexibility.
Source: 10-Q Balance Sheet Data
The company has deployed $776.6M in share repurchases in just the first half of FY2026, funded in part by debt issuance. If credit markets tighten or FICO's earnings growth decelerates, the ability to sustain this capital return program could be impaired, potentially affecting investor sentiment.
Source: 10-Q Cash Flow Data
FICO's revenue growth of 38.7% significantly outpaces cost growth, suggesting substantial price increases in its scoring business. If mortgage origination volumes decline, regulatory scrutiny of FICO score pricing intensifies, or customers resist further price hikes, revenue growth could decelerate sharply.
Source: 10-Q Income Statement Data
The reported debt-to-equity ratio of approximately -1.97x is mathematically negative due to negative equity, which obscures the true leverage risk. Total liabilities of $4.15B against total assets of $2.05B means the company is technically insolvent on a book-value basis, relying entirely on future earnings power.
Source: 10-Q Balance Sheet Data
R&D expense grew only 19.7% YoY to $53.9M while revenue grew 38.7%, meaning R&D as a percentage of revenue is declining. While this boosts near-term margins, underinvestment in innovation relative to growth could erode FICO's competitive moat in AI-driven credit decisioning over the medium term.
Source: 10-Q Income Statement Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 691.68 $M | 498.74 $M | +38.69% |
Cost of Revenue $M | 91.20 $M | 87.63 $M | +4.07% |
Operating Income $M | 402.47 $M | 245.65 $M | +63.84% |
Net Income $M | 264.46 $M | 162.62 $M | +62.63% |
EPS (Basic) $ | 11.19 $ | 6.67 $ | +67.77% |
EPS (Diluted) $ | 11.14 $ | 6.59 $ | +69.04% |
R&D Expense $M | 53.92 $M | 45.04 $M | +19.71% |
SG&A Expense $M | 144.10 $M | 120.42 $M | +19.66% |
Answers draw on this SEC filing and the data on this page
FICO delivered strong Q3 FY2026 results driven by a 41% revenue surge in its Scores segment due to higher B2B pricing, while expanding operating margin to 53.8% and initiating a $1.5 billion accelerated share repurchase.
FICO delivered strong Q1 FY2026 results with revenue up 16.4% YoY to $512.0M and operating margin expanding nearly 5 percentage points to 45.7%, though aggressive share buybacks have deepened the stockholders' equity deficit to -$1.81B.
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