Mortgage Score Pricing Power Drives 26% Revenue Surge; FICO Executes $1.5B Buyback
FICO sits 41% above its 52-week low of $870.01.
Summary
FICO's fiscal Q3 2026 revenue rose 26% to $674 million, driven by a 41% jump in Scores revenue from higher mortgage origination pricing. The company executed a $1.5 billion accelerated share repurchase, reducing shares outstanding by 9% year-over-year, while total debt increased to $5.6 billion to fund capital returns.
Key Events · Earnings and Guidance · FICO
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Scores Revenue Surges 41%
Scores segment revenue reached $458.9 million in Q3, up from $324.3 million a year ago, driven primarily by higher unit pricing on mortgage origination scores. Business-to-business Scores revenue alone increased $131.6 million.
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$1.5B Accelerated Share Repurchase Executed
FICO entered into an ASR agreement on June 5, 2026, paying $1.5 billion and receiving an initial delivery of 1,055,103 shares (~80% of expected total). The remaining $300 million prepayment will settle in fiscal Q4 2026.
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Share Count Down 9% Year-Over-Year
Diluted weighted-average shares fell to 22.7 million from 24.6 million a year ago, amplifying EPS growth. Diluted EPS of $10.45 was up 41% despite a higher tax rate.
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Debt Load Doubles to Fund Buybacks
Total debt increased to $5.6 billion from $3.1 billion at fiscal year-end 2025, including a new $1.5 billion term loan and $1.0 billion of 6.25% senior notes due 2034. Interest expense rose 82% to $59.9 million in the quarter.
Analysis · FICO · Trade & Services
A standout quarter for Fair Isaac saw Scores revenue leap 41%, underscoring the company's ability to command higher prices on mortgage originations. Operating momentum was matched by aggressive capital deployment—a $1.5 billion accelerated share repurchase helped shrink the share count by 9% year-over-year. While total debt nearly doubled to $5.6 billion to fund buybacks, nine-month operating cash flow of $778 million provides ample coverage. The results reinforce the view that FICO's Scores business acts as a tollbooth on U.S. consumer lending with significant pricing runway, even as the Software segment makes steady progress in its SaaS transition with ARR up 10%.
At the time of this filing, FICO was trading at $1,230.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $31.8B. The 52-week trading range was $870.01 to $1,998.01. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.