Fair Isaac (FICO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $512 million, up 16% year-over-year, with GAAP net income of $158 million and GAAP EPS of $6.61, both up 4% and 8% respectively; non-GAAP net income was $176 million and non-GAAP EPS was $7.33, up 22% and 27% respectively.

• Scores segment drove growth, especially B2B Scores from mortgage originations, while Software saw modest gains from platform expansion.

• Operating income increased 30% year-over-year to $234 million.

• Free cash flow for the quarter was $165 million; trailing twelve-month free cash flow totaled $718 million, up 7% year-over-year.

• Management reiterated fiscal 2026 guidance, expressing confidence in exceeding targets but citing macroeconomic uncertainty.

Financial highlights

• Scores segment revenue was $305 million, up 29% year-over-year, and Software segment revenue was $207 million, up 2% year-over-year.

• Software ACV bookings hit a record $38 million in Q1, with trailing 12-month ACV bookings at $119 million, up 36% year-over-year.

• Total software ARR reached $766 million, up 5% year-over-year; platform ARR was $303 million, up 33%, while non-platform ARR declined 8%.

• Non-GAAP operating margin was 54%, up 432 basis points year-over-year; adjusted EBITDA margin was 55%.

• Cash and marketable investments at quarter end were $218 million; total debt was $3.2 billion at a 5.22% weighted average interest rate.

Outlook and guidance

• Fiscal 2026 revenue guidance is $2.35 billion, with GAAP net income guidance at $795 million and GAAP EPS at $33.47; non-GAAP net income guidance is $907 million and non-GAAP EPS at $38.17.

• Full-year net effective tax rate expected at 24%, operating tax rate at 25%.

• Operating expenses are expected to trend upward modestly through the year.

• Management expects current cash, cash equivalents, available borrowings, and operating cash flows to be sufficient for at least the next 12 months.