Fair Isaac Corporation (FICO) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenues reached $692 million, up 39% year-over-year, with GAAP net income of $264.5 million, up 63%, and GAAP EPS of $11.14, up 69%. Non-GAAP net income was $297 million, up 54%, and non-GAAP EPS was $12.50, up 60%.

• Scores segment led growth, up 60% year-over-year to $475 million, driven by a 127% increase in B2B mortgage revenue; Software segment revenues grew 7% to $217 million.

• Free cash flow for Q2 was $214 million; trailing twelve-month free cash flow was $867 million, up 28% year-over-year.

• Raised full-year FY26 guidance for revenue ($2.45 billion, +23%), GAAP net income ($825 million, +27%), and non-GAAP net income ($946 million, +29%).

• Executed the largest quarterly share repurchase in company history at $605 million; $773.9 million repurchased in the first six months of FY26.

Financial highlights

• Scores segment revenues were $475 million, up 60% year-over-year; B2B Scores up 72%, B2C up 5%; Software revenues were $217 million, up 7% year-over-year.

• Mortgage origination revenues surged 127% year-over-year, accounting for 72% of B2B and 63% of total Scores revenue.

• Software ARR reached $789 million (+10% YoY); Platform ARR $349 million (+49%), non-platform ARR $440 million (-8%).

• Non-GAAP operating margin was 65%, up from 58% a year ago; operating expenses rose 4% sequentially to $289 million.

• Cash and marketable investments at quarter-end were $272 million; total debt was $3.64 billion at a 5.5% weighted average interest rate.

Outlook and guidance

• FY26 revenue guidance raised to $2.45 billion (+23% YoY); GAAP net income guidance to $825 million (+27%), GAAP EPS to $35.60 (+34%).

• Non-GAAP net income guidance to $946 million (+29%), non-GAAP EPS to $40.45 (+35%).

• Guidance assumes no volume loss to VantageScore and includes some lag for performance model adoption.

• Management expects cash and available borrowings to be sufficient for at least the next 12 months; no significant debt maturities expected.