Why Is Fair Isaac (FICO) Up 5.8% Since Last Earnings Report?

A month has gone by since the last earnings report for Fair Isaac (FICO). Shares have added about 5.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Fair Isaac due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Fair Isaac Corporation before we dive into how investors and analysts have reacted as of late.Fair Isaac Q4 Earnings Top Estimates, Revenues Rise Y/YFair Isaac reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, which surpassed the Zacks Consensus Estimate by 5.45% and jumped 18.3% year over year.Revenues of $515.8 million beat the consensus mark by 0.78% and increased 13.6% year over year. The Americas, EMEA, and Asia Pacific contributed 87%, 8% and 5% to total revenues, respectively. Scores (60.4% of revenues) increased 25% year over year to $311.6 million.FICO’s Top-Line DetailsSoftware revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, declined 0.2% year over year to $204.2 million.Software Annual Recurring Revenues (ARR) increased 4% year over year, consisting of 16% platform ARR growth but a 2% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 102% in the fiscal fourth quarter, with platform software at 112% and non-platform software at 97%. On-premises and SaaS Software (35.4% of revenues) increased 0.4% year over year to $182.4 million. Professional services (4.2% of revenues) were $21.8 million, down 4.8% year over year. Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 29% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 8% year over year due to increased revenues from myFICO.com business and indirect channel partners.Mortgage originations revenues rose 55% year over year. Auto originations revenues increased 24% year over year. Credit card, personal loan, and other origination revenues are up 7% year over year.FICO’s Operating DetailsResearch and development expenses, as a percentage of revenues, expanded 10 basis points (bps) on a year-over-year basis to 9.9%.Selling, general, and administrative expenses, as a percentage of revenues, decreased 270 bps year over year to 24.3%.Non-GAAP Operating margin was 54% in the fiscal fourth quarter of 2025 compared with 52% in the year-ago quarter.Adjusted EBITDA increased 18.3% year over year to $286.6 million in the reported quarter. The adjusted EBITDA margin in the fiscal fourth quarter of 2025 was 55.6% compared with 53.4% in the fiscal fourth quarter of 2024.FICO’s Balance Sheet & Cash FlowAs of Sept. 30, 2025, FICO had $134 million in cash and cash equivalents, and total debt was $3.06 billion. Cash flow from operations was $223.6 million in the fiscal fourth quarter compared with $286.2 million in the prior quarter. Free cash flow was $210.8 million for the reported quarter compared with $276.2 million reported in the prior quarter.In the fiscal fourth quarter, FICO repurchased 358K shares.FICO Reiterates Fiscal 2026 GuidanceFor fiscal 2026, FICO anticipates revenues of $2.35 billion.Non-GAAP earnings are projected to be $38.17 per share.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.VGM ScoresAt this time, Fair Isaac has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Fair Isaac has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerFair Isaac belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, DXC Technology Company. (DXC), has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.DXC Technology reported revenues of $3.16 billion in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $0.84 for the same period compares with $0.93 a year ago.DXC Technology is expected to post earnings of $0.85 per share for the current quarter, representing a year-over-year change of -7.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.DXC Technology has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fair Isaac Corporation (FICO): Free Stock Analysis Report DXC Technology Company. (DXC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks