Key Highlights

  • Fourth-quarter fiscal 2026 Revenue reached USD 657.0 million, a 27% increase from USD 515.8 million, and Scores revenue jumped 33% to USD 413.8 million.
  • GAAP Net Income of USD 175.0 million equaled USD 8.12 per share versus USD 6.42, while non-GAAP EPS climbed to USD 11.10 from USD 7.74.
  • The GAAP profit absorbed a USD 65 million accrual tied to a proposed settlement and a USD 27 million workforce charge, but it also gained USD 48 million from selling an Equity holding.
  • Software ARR expanded 14%, driven by platform ARR jumping 72% while non-platform ARR retreated 18%. No fiscal 2027 outlook was given.

Mortgage Score Price Gains Lift Top-Line Revenue

On November 4, 2026, Fair Isaac (NYSE:FICO) disclosed its fiscal fourth-quarter 2026 numbers, covering the three months to September 30, 2026. Sales of USD 657.0 million were driven chiefly by Scores, where business-to-business income jumped 39%. The company credits a richer unit price on Mortgage origination scores, partly offset by lower origination volume. Business-to-consumer revenue grew 3%, and software revenue rose 19% to USD 243.2 million. The firm is an analytics software Business whose best-known product is the FICO Score, a widely used gauge of consumer Credit risk across the United States. Over the whole fiscal year, revenue hit USD 2,534.9 million, up from USD 1,990.9 million, while GAAP diluted EPS moved to USD 36.32 from USD 26.54.

Settlement Accrual and Restructuring Widen the GAAP Gap

Reported GAAP income of USD 175.0 million absorbed a USD 65 million reserve for a settlement still being proposed, tied to antitrust class actions over Scores. A staff reduction expense of USD 27 million also weighed on it, while a USD 48 million gain outside operations from selling an equity holding offset part of the drag. Stripping those and other items out, non-GAAP net income came to USD 239.3 million, up from USD 187.0 million. SG&A costs rose to USD 225.4 million, compared with USD 125.5 million. Operating cash generation reached USD 294.2 million, up from USD 223.7 million, and the tax provision was USD 62.5 million. Operating Income reached USD 266.6 million, versus USD 237.2 million, and free Cash Flow (non-GAAP) hit USD 284.3 million compared with USD 210.8 million.

Pricing Shift Leaves Fiscal 2027 Outlook Unset

Management described a shift toward custom mortgage origination pricing, starting with the FICO Preferred Program, while agreements for calendar 2027 remain under negotiation. Higher rates and tighter affordability, the company added, hold Loan originations under historical levels, which is why no fiscal 2027 guidance was issued. Long-term Debt stood at USD 4,921.6 million and the stockholders' Deficit at USD 3,873.2 million on September 30, 2026. Buybacks reached USD 3,046.0 million for the year, compared with USD 1,414.5 million previously. Software dollar-based net retention stood at 112%.

Where Things Stand

Uncertainty about pricing and loan Volume explains the silence, rather than any shortfall in sales. Fair Isaac (NYSE:FICO) is in the middle of moving to custom mortgage score pricing; calendar 2027 programs are still in progress and loan volumes remain weak, which led management to hold back on fiscal 2027 guidance. Sales and non-GAAP EPS both climbed steeply, but the Balance Sheet now carries more debt and a bigger deficit following repurchases. Watch for further pricing program announcements and the settlement process. No share price response shows up in the release.