Fair Isaac Corporation Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Software | Market Cap: ₹30.1K Cr
- Q2 FY26 revenues rose 39% YoY to $692 million, with strong momentum expected to continue. - Full-year FY 2026 revenue guidance raised to $2.45 billion, a 23% increase year-over-year.
From Fair Isaac Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹1,296.36
Market Cap
₹30.1K Cr
P/E Ratio
40.0
Revenue Rank
Margin Rank
How does Fair Isaac Corporation rank in Software?
Compare Fair Isaac Corporation against every Software company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 2- →Q2 FY26 revenues rose 39% YoY to $692 million, with strong momentum expected to continue.
- →Scores segment, up 60% YoY, driven mainly by mortgage origination score price and volume growth; conservative volume guidance with no anticipated share loss.
- →Software segment ARR grew 10% YoY, with platform ARR up 49%, driven by land and expand strategy; non-platform declined due to migrations and usage drops.
- →Software ACV bookings up 36% YoY, with expectations of stronger bookings in H2 2026.
- →Mortgage origination volumes notably strong, supported by rate environment and bureau data, with 127% growth in mortgage revenues this quarter.
- →Platform adoption and expansion in financial services remain the primary growth drivers; minimal growth impact from outside financial verticals currently.
- →Management expects steady expense growth supporting innovation and marketing, especially around FICO World event.
- →Share buybacks suggest confidence in valuation and cash flow outlook.
📈 Profitability & Margins
Rank 3- →Full-year FY 2026 revenue guidance raised to $2.45 billion, a 23% increase year-over-year.
- →GAAP net income guidance increased to $825 million, a 27% rise from prior year.
- →GAAP earnings per share (EPS) guidance raised to $35.60, up 34%.
- →Non-GAAP net income guidance now $946 million, a 29% growth.
- →Non-GAAP EPS guidance increased to $40.45, a 35% increase.
- →Non-GAAP operating margin expansion of 712 basis points year-over-year to 65% for Q2.
- →Operating expenses expected to trend modestly upward, mainly due to personnel and marketing for FICO World and Scores business.
- →Continued strong free cash flow generation with $214 million in Q2 and $867 million over last 4 quarters, up 28%.
- →Share repurchases ongoing, with $605 million bought back in Q2 and an additional $170 million after April 1.
🏗️ Capital Expenditure Plans
No information- →Incremental expenses include investments in new scores and marketing, particularly for the Scores business.
- →Incremental personnel expenses and marketing spend expected related to FICO World conference and Scores business growth.
- →Software segment growth, especially platform bookings, indicates ongoing investment in platform development and customer expansion.
- →Investments focus primarily within financial services, driven by land-and-expand strategy with existing customers.
- →No material change or significant new capital expenditures explicitly detailed; expenses trending modestly upward from Q2 run rate, mainly personnel and marketing.
- →Innovation investments continue but are described as not large relative to overall expenses.
- →Preparing to launch and scale FICO 10T with pricing adjustments meant to encourage adoption.
- →Overall, strategic investments center on product innovation, marketing, and platform expansion rather than heavy capital expenditures.
💰 Fundraising & Capital Structure
No information- →As of March 31, 2026, FICO had $272 million in cash and marketable investments.
- →Total debt stood at $3.64 billion with a weighted average interest rate of 5.5%.
- →In March, FICO issued $1 billion in senior notes due 2034 and used part of the proceeds to redeem $400 million in senior notes due in May.
- →There is a $265 million balance on the revolving line of credit, which is repayable at any time.
- →No explicit mention of new fundraising plans through debt or equity was made in the provided transcript.
- →The company continues to return capital to shareholders via share repurchases, supported by strong free cash flow and available revolver capacity.
- →Overall, no announced plans for new fundraising through debt or equity at this time.
📋 Order Book & Pipeline
Yes- →Software segment ACV (Annual Contract Value) bookings for the quarter were $28 million.
- →Trailing 12-month ACV bookings reached $126 million, a 36% increase year-over-year.
- →Strong pipeline expected to drive bookings in the second half of the year to exceed first half.
- →Platform ARR (Annual Recurring Revenue) was $349 million (44% of total ARR), growing 49% year-over-year.
- →Non-platform ARR declined 8% to $440 million due to migrations, end-of-life products, and usage declines.
- →Platform growth driven by new customer wins and expanded use cases.
- →Software segment revenues up 7% year-over-year to $217 million.
- →SaaS revenues grew 19%, driven by FICO Platform.
- →Overall outlook reflects robust order intake and strong momentum in platform bookings.
Key Metrics
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Frequently Asked Questions
What were Fair Isaac Corporation Q2 FY26 results?
- Q2 FY26 revenues rose 39% YoY to $692 million, with strong momentum expected to continue. - Full-year FY 2026 revenue guidance raised to $2.45 billion, a 23% increase year-over-year.
What is Fair Isaac Corporation share price analysis?
Fair Isaac Corporation currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 40.0 with a market cap of $30,064. Investors should review the full earnings analysis for detailed insights.
Is Fair Isaac Corporation planning capital expenditure?
- Incremental expenses include investments in new scores and marketing, particularly for the Scores business.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.