Fair Isaac Corporation (FICO)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a business that earns high returns on capital and converts profits into cash. Fair Isaac fits much of that: in fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $674.2M and net income was $237.2M, a 35.2% net margin, while fiscal 2025, the year ended 2025-09-30, produced revenue of $2.0B, net income of $651.9M, and diluted EPS of $26.54, up from $1.7B, $512.8M, and $20.45 in fiscal 2024. The business sells credit scores and analytics software, and its Scores segment appears deeply embedded in client decision-making. That embedded position, supported by a FairStock ROCE calculation of 39.98%, suggests a durable competitive advantage. The balance sheet looks safe on the Altman Z-Score of 6.11, and trailing free cash flow of $960.9M gives a 6.2% FCF yield at the 2026-10-13 close. Growth is solid but not perfectly smooth: fiscal Q2 2026, the quarter ended 2026-03-31, had revenue of $691.7M and net income of $264.5M, higher than the fiscal Q3 2026 figures, so sequential momentum softened. At $723.03, FairStock shows a P/E of 23.20, PEG of 0.76, and EV/EBITDA of 16.54. That is not a Graham deep-value bargain, but it is reasonable for a stalwart with 22.5% five-year profit growth and 9.0% revenue growth, as categorized by FairStock. Piotroski is only 5/9, so I would watch whether the next quarters confirm the growth path. Overall, a high-quality compounder priced fairly, not a speculation.

In plain English: Fair Isaac sells credit scores and analytics software to lenders and consumers. The business looks strong, with growing sales, profits, and cash coming in. At the latest close, the stock looks reasonably priced against those numbers, not a screaming bargain but not obviously expensive either.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer