Jefferies analyst Surinder Thind has increased the price target for FICO (FICO, Financial) shares from $2,225 to $2,500, maintaining a Buy rating. After attending the FICO World 2025 event, Thind expressed greater confidence in the company's Scores segment, highlighting its potential for increased pricing. The analyst is also optimistic about the long-term prospects of FICO's software platform.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Fair Isaac Corp (FICO, Financial) is $2,254.62 with a high estimate of $3,700.00 and a low estimate of $1,364.00. The average target implies an upside of 5.55% from the current price of $2,136.03. More detailed estimate data can be found on the Fair Isaac Corp (FICO) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Fair Isaac Corp's (FICO, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fair Isaac Corp (FICO, Financial) in one year is $1537.89, suggesting a downside of 28% from the current price of $2136.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Fair Isaac Corp (FICO) Summary page.
FICO Key Business Developments
Release Date: April 29, 2025
- Revenue: $499 million, up 15% year-over-year.
- GAAP Net Income: $163 million, up 25% year-over-year.
- GAAP Earnings Per Share: $6.59, up 28% year-over-year.
- Non-GAAP Net Income: $193 million, up 25% year-over-year.
- Non-GAAP Earnings Per Share: $7.81, up 27% year-over-year.
- Free Cash Flow: $65 million for the quarter; $677 million over the last four quarters, up 45% year-over-year.
- Scores Segment Revenue: $297 million, up 25% year-over-year.
- B2B Revenue Growth: Up 31%, driven by mortgage originations.
- B2C Revenue Growth: Up 6%, driven by indirect channel partners.
- Software Segment Revenue: $202 million, up 2% year-over-year.
- Operating Expenses: $253 million, down 3% from the prior quarter.
- Non-GAAP Operating Margin: 58%, up 450 basis points year-over-year.
- Accounts Receivable: Increased due to timing of large payments.
- Share Repurchases: 112,000 shares at an average price of $1,849 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fair Isaac Corp (FICO, Financial) reported a strong quarter with revenues of $499 million, up 15% from the previous year.
- GAAP net income increased by 25% to $163 million, and GAAP earnings per share rose by 28% to $6.59.
- The Scores segment saw a significant revenue increase of 25%, driven by a 31% rise in B2B revenues, particularly from mortgage originations.
- FICO continues to innovate with the introduction of the FICO Score 10 T and a Kenya-specific FICO score, enhancing financial inclusion.
- The company is expanding its partner channels, including a new partnership with Fujitsu to support digital transformation in Japanese financial institutions.
Negative Points
- The Software segment only saw a modest revenue increase of 2%, with professional services declining by 9%.
- There are macroeconomic uncertainties affecting customer conservatism, impacting growth in usage of certain services.
- Non-platform ARR declined by 3%, indicating challenges in maintaining growth in non-platform services.
- The company faces headwinds in CCS usage as some customers delay or downsize outreach programs due to macro volatility.
- Operating expenses are expected to rise in the second half of the year due to events like the FICO World Conference and other marketing activities.
