Fair Isaac Corporation (FICO) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached $674.2 million, up 26% year-over-year, with GAAP net income of $237.2 million, up 30%, and GAAP EPS of $10.45, up 41%; non-GAAP net income was $277 million, up 31%, and non-GAAP EPS was $12.18, up 42%.

• Free cash flow for the quarter was $370.3 million, with trailing twelve-month free cash flow at $961 million, up 28%.

• Raised full-year 2026 guidance: revenue now expected at $2.53 billion (+20% to +27%), GAAP net income at $850 million (+30%), and non-GAAP net income at $979 million (+33%).

• Scores segment led growth, driven by B2B mortgage revenue and adoption of FICO Score 10T.

• Record share repurchases executed, totaling $1.96 billion in Q3 and $3.05 billion for the nine months, including a $1.5 billion accelerated share repurchase.

Financial highlights

• Scores segment revenue was $458.9 million, up 41% year-over-year; B2B revenues up 49%, B2C up 5%.

• Mortgage origination revenues surged 97% year-over-year, accounting for 71% of B2B and 62% of total Scores revenue.

• Software segment revenue was $215.3 million, up 2% year-over-year; SaaS revenue grew 21%, on-premises declined 16%, and professional services declined 24%.

• Platform ARR grew 62% to $413 million, surpassing non-platform ARR for the first time; total Software ARR was $816 million (+10%).

• Non-GAAP operating margin was 62%, up from 57% a year ago; effective tax rate for the quarter was 24.6%.

Outlook and guidance

• Full-year revenue guidance raised to $2.53 billion (+20% to +27% YoY), GAAP net income to $850 million (+30%), and non-GAAP net income to $979 million (+33%).

• GAAP EPS guidance increased to $36.86 and non-GAAP EPS to $42.43.

• Q4 operating expenses expected to be modestly higher due to marketing and one-time restructuring charges.

• Management expects current cash, credit, and operating cash flows to be sufficient for capital needs for at least the next 12 months.

• Near-term focus on deleveraging; additional share repurchases unlikely in Q4 beyond current ASR.