Fair Isaac Corporation

FICO reported Q2 revenue of $692 million, up 39% year over year. GAAP net income was $264 million, up 63%, and GAAP EPS was $11.14, up 69%. Non-GAAP net income was $297 million, up 54%, and non-GAAP EPS was $12.50, up 60%. Free cash flow was $214 million, and over the last four quarters free cash flow was $867 million, up 28% versus the prior four-quarter period. Scores revenue was $475 million, up 60%, and software revenue was $217 million, up 7%. For fiscal 2026, FICO now expects revenue of $2.45 billion, GAAP net income of $825 million and GAAP EPS of $35.60, and non-GAAP net income of $946 million and non-GAAP EPS of $40.45.

Will Lansing described the quarter as very strong and said FICO had a great start to the first half of the fiscal year. He emphasized that the company is moving closer to the rollout of FICO 10T and is using pricing changes to encourage broader adoption of the score. He also framed AI as a major opportunity, but one that FICO is approaching through explainability, model governance, and proprietary data advantages in regulated markets.

Steve Weber highlighted the drivers behind the quarter: Scores revenue up 60% on stronger mortgage origination scores pricing and volume, software ACV bookings of $28 million, trailing-12-month ACV bookings of $126 million, and total software ARR of $789 million. He said platform ARR was $349 million, up 49%, platform NRR was 136%, and non-platform NRR was 90%, while operating margin expanded to 65% from 58% a year ago. He also noted $272 million in cash and marketable investments, $3.64 billion of total debt at a 5.5% weighted average rate, and $605 million of Q2 buybacks, plus another $170 million repurchased since April 1.

Analysts focused heavily on the new FICO 10T pricing, VantageScore’s potential role in conforming mortgage, and the timing of direct licensing and FHFA approvals. Management said the lower upfront price is meant to encourage adoption and is roughly revenue neutral, and that it does not expect any loss of volume to Vantage in fiscal 2026. On the mortgage side, Lansing said lenders will likely face gaming and operational issues if both scores are used, and that FICO believes 10T remains more predictive and competitively priced.