FICO Announces Earnings of $10.45 per Share for Third Quarter Fiscal 2026
BOZEMAN, Mont.--( BUSINESS WIRE)--FICO (NYSE:FICO), a global analytics software leader, today announced results for its third fiscal quarter ended June 30, 2026.
Third Quarter Fiscal 2026 GAAP Results
Net income for the quarter totaled $237.2 million, or $10.45 per share, versus $181.8 million, or $7.40 per share, in the prior year period.
Net cash provided by operating activities for the quarter was $380.4 million versus $286.2 million in the prior year period.
Third Quarter Fiscal 2026 Non-GAAP Results
Non-GAAP Net Income for the quarter was $276.6 million versus $210.6 million in the prior year period. Non-GAAP EPS for the quarter was $12.18 versus $8.57 in the prior year period. Free cash flow was $370.3 million for the current quarter versus $276.2 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.
Third Quarter Fiscal 2026 GAAP Revenue
The company reported revenues of $674.2 million for the quarter as compared to $536.4 million reported in the prior year period, an increase of 26%.
“We delivered another quarter of strong performance, driven by the successful execution of our strategic priorities,” said Will Lansing, chief executive officer. “We are pleased to announce that we are raising our full year guidance.”
Revenues for the third quarter of fiscal 2026 for the company’s two operating segments were as follows:
Outlook
The company is updating its previously provided guidance for fiscal 2026:
Previous Fiscal 2026 Guidance
Updated Fiscal 2026 Guidance
Revenues
$2.45 billion
$2.53 billion
GAAP Net Income
$825 million
$850 million
GAAP EPS
$35.60
$36.86
Non-GAAP Net Income
$946 million
$979 million
Non-GAAP EPS
$40.45
$42.43
The Non-GAAP financial measures are described in the financial table captioned “Reconciliation of Non-GAAP Guidance.”
Company to Host Conference Call
The company will host a webcast on July 29, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its third quarter fiscal 2026 results and provide various strategic and operational updates. The call can be accessed at FICO's web site at www.fico.com/investors. A replay of the webcast will be available on our Past Events page through July 29, 2027.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO ® Score, used by 90% of top U.S. lenders, is the standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries, improving risk management, credit access and transparency.
Learn more at https://www.fico.com/en
Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/
For FICO news and media resources, visit https://www.fico.com/en/newsroom
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of macroeconomic conditions on FICO’s business, operations and personnel, the success of the Company’s business strategies, the maintenance of its existing relationships and ability to create new relationships with customers, distributors and other business partners, its ability to continue to develop new and enhanced products and services and to enter new markets, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use or costs of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions or divestitures, and material adverse developments or uncertainty in global economic conditions or in the markets or industries that the Company serves. Additional information on these risks and uncertainties and other factors that could affect FICO’s future results are described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2025 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, 2026
September 30, 2025
(In thousands)
Assets
Current assets:
Cash and cash equivalents
$
248,444
$
134,136
Accounts receivable, net
592,530
529,148
Prepaid expenses and other current assets
40,589
41,881
Total current assets
881,563
705,165
Marketable securities
56,093
54,625
Property and equipment, net
90,988
67,713
Operating lease right-of-use assets
23,087
26,213
Goodwill
791,815
783,340
Other assets
193,827
231,077
Total assets
$
2,037,373
$
1,868,133
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and other accrued liabilities
$
128,904
$
146,933
Accrued compensation and employee benefits
110,863
115,369
Deferred revenue
205,424
187,372
Current maturities on debt
300,000
399,541
Total current liabilities
745,191
849,215
Long-term debt
5,282,389
2,656,150
Operating lease liabilities
15,621
19,187
Other liabilities
91,307
89,365
Total liabilities
6,134,508
3,613,917
Stockholders’ deficit
(4,097,135
)
(1,745,784
)
Total liabilities and stockholders’ deficit
$
2,037,373
$
1,868,133
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarter Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
(In thousands, except per share data)
Revenues:
On-premises and SaaS software
$
196,969
$
187,915
$
584,421
$
557,752
Professional services
18,322
24,191
54,999
60,343
Scores
458,897
324,309
1,238,404
857,023
Total revenues
674,188
536,415
1,877,824
1,475,118
Operating expenses:
Cost of revenues
87,017
87,571
265,477
262,546
Research and development
53,708
47,212
157,536
137,394
Selling, general and administrative
170,835
139,114
455,669
387,484
Total operating expenses
311,560
273,897
878,682
787,424
Operating income
362,628
262,518
999,142
687,694
Other expense, net
(47,969
)
(25,527
)
(136,523
)
(87,558
)
Income before income taxes
314,659
236,991
862,619
600,136
Provision for income taxes
77,487
55,202
202,616
103,204
Net income
$
237,172
$
181,789
$
660,003
$
496,932
Earnings per share:
Basic
$
10.46
$
7.49
$
28.28
$
20.41
Diluted
$
10.45
$
7.40
$
28.12
$
20.12
Shares used in computing earnings per share:
Basic
22,670
24,284
23,341
24,350
Diluted
22,703
24,575
23,470
24,696
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended June 30,
2026
2025
(In thousands)
Cash flows from operating activities:
Net income
$
660,003
$
496,932
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
12,123
10,931
Share-based compensation
141,910
124,288
Changes in operating assets and liabilities
(66,268
)
(64,961
)
Other, net
30,112
(12,052
)
Net cash provided by operating activities
777,880
555,138
Cash flows from investing activities:
Purchases of property and equipment
(1,355
)
(4,751
)
Capitalized internal-use software costs
(26,491
)
(21,831
)
Net activity from marketable securities
1,380
(3,808
)
Other, net
(12,810
)
—
Net cash used in investing activities
(39,276
)
(30,390
)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loans
2,950,000
450,000
Payments on revolving line of credit and term loans
(1,015,000
)
(1,368,750
)
Proceeds from issuance of senior notes
1,000,000
1,500,000
Payments on senior notes
(400,000
)
—
Proceeds from issuance of treasury stock under employee stock plans
14,935
21,908
Taxes paid related to net share settlement of equity awards
(111,275
)
(203,188
)
Repurchases of common stock
(3,045,992
)
(866,520
)
Other, net
(15,013
)
(20,242
)
Net cash used in financing activities
(622,345
)
(486,792
)
Effect of exchange rate changes on cash
(1,951
)
426
Increase in cash and cash equivalents
114,308
38,382
Cash and cash equivalents, beginning of period
134,136
150,667
Cash and cash equivalents, end of period
$
248,444
$
189,049
FAIR ISAAC CORPORATION
NON-GAAP RESULTS
(Unaudited)
Quarter Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
(In thousands, except per share data)
GAAP net income
$
237,172
$
181,789
$
660,003
$
496,932
Share-based compensation expense
52,331
41,930
141,910
124,288
Income tax adjustments
(13,434
)
(10,332
)
(36,521
)
(30,560
)
Excess tax benefit
537
(2,836
)
(16,372
)
(43,630
)
Non-GAAP net income
$
276,606
$
210,551
$
749,020
$
547,030
GAAP diluted earnings per share
$
10.45
$
7.40
$
28.12
$
20.12
Share-based compensation expense
2.31
1.71
6.05
5.03
Income tax adjustments
(0.59
)
(0.42
)
(1.56
)
(1.24
)
Excess tax benefit
0.02
(0.12
)
(0.70
)
(1.77
)
Non-GAAP diluted earnings per share
$
12.18
$
8.57
$
31.91
$
22.15
Free cash flow
Net cash provided by operating activities
$
380,440
$
286,223
$
777,880
$
555,138
Capital expenditures
(10,097
)
(9,984
)
(27,845
)
(26,582
)
Free cash flow
$
370,343
$
276,239
$
750,035
$
528,556
Note: The numbers may not sum to total due to rounding.
About Non-GAAP Financial Measures
To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.
FAIR ISAAC CORPORATION
RECONCILIATION OF NON-GAAP GUIDANCE
(Unaudited)
Previous Fiscal 2026
Guidance
Updated Fiscal 2026
Guidance
(In millions, except per share data)
GAAP net income
$
825
$
850
Share-based compensation expense
185
188
Income tax adjustments
(45
)
(46
)
Excess tax benefit
(19
)
(13
)
Non-GAAP net income
$
946
$
979
GAAP diluted earnings per share
$
35.60
$
36.86
Share-based compensation expense
7.44
8.15
Income tax adjustments
(1.83
)
(2.00
)
Excess tax benefit
(0.76
)
(0.59
)
Non-GAAP diluted earnings per share
$
40.45
$
42.43
Note: The numbers may not sum to total due to rounding.
About Non-GAAP Financial Measures
To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.