Fair Isaac (FRA:FRI) Operating Margin %: 58.19% (As of Mar. 2026) — 102% Above Median


FRA:FRI Fair Isaac Corp FRA:FRI
87 GF Score
Price €1,012.00
GF Value €1,777.34
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Fair Isaac Operating Margin %?

Fair Isaac FRA:FRI 87 Operating Margin % is 58.19% as of Mar. 2026, which is 102% above its 10-year median of 28.87. GuruFocus rates FRA:FRI with a GF Score™ of 87/100 and a GF Value™ of €1,777.34 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,820 Software companies, Fair Isaac ranks better than 98.9% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Fair Isaac's Operating Income for the three months ended in Mar. 2026 was €348 Mil. Fair Isaac's Revenue for the three months ended in Mar. 2026 was €598 Mil. Therefore, Fair Isaac's Operating Margin % for the quarter that ended in Mar. 2026 was 58.19%.

Good Sign:

Fair Isaac Corp operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Fair Isaac's Operating Margin % or its related term are showing as below:

FRA:FRI' s Operating Margin % Range Over the Past 10 Years
Min: 17.53   Med: 28.87   Max: 50.85
Current: 50.85


FRA:FRI's Operating Margin % is ranked better than
98.9% of 2820 companies
in the Software industry
Industry Median: 3.865 vs FRA:FRI: 50.85

Fair Isaac's 5-Year Average Operating Margin % Growth Rate was 11.80% per year.

Fair Isaac's Operating Income for the three months ended in Mar. 2026 was €348 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €987 Mil.


Fair Isaac  (FRA:FRI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Fair Isaac Operating Margin % Related Terms


Fair Isaac Operating Margin % Historical Data

* Premium members only.

The historical data trend for Fair Isaac's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Fair Isaac Operating Margin % Chart

Fair Isaac Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.39 39.38 42.34 42.71 47.00

Fair Isaac Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.25 48.94 48.10 45.72 58.19

FRA:FRI vs ZM, TEAM, ROP: Operating Margin % Comparison

For the Software - Application subindustry, Fair Isaac's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fair Isaac Operating Margin % vs Software Industry

For the Software industry and Technology sector, Fair Isaac's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Fair Isaac's Operating Margin % falls into.


FRA:FRI
87GF Score
Fair Isaac Corp FRA:FRI
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Fair Isaac Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Fair Isaac's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as

Operating Margin %=Operating Income (A: Sep. 2025 ) / Revenue (A: Sep. 2025 )
=797.278 / 1696.22
=47.00 %

Fair Isaac's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=348.132 / 598.301
=58.19 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 58.19% mean?
Fair Isaac (FRA:FRI) has a Operating Margin % of 58.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fair Isaac and its competitors. This is 102% above median its historical median of 28.87. Over the past decade, Fair Isaac's Operating Margin % has ranged from 17.53 to 50.85. According to the industry distribution chart, Fair Isaac ranks #31 out of 2820 companies in the Software industry, placing it in the top 1.1%.
Is Fair Isaac's Operating Margin % too high?
Fair Isaac's current Operating Margin % of 58.19% is 102% above median its 10-year median of 28.87. Over the past 10 years, this metric has ranged from a low of 17.53 to a high of 50.85. The Software industry median Operating Margin % is 3.87. Fair Isaac's value of 58.19% is 1405.6% above this industry median. Based on the distribution chart, Fair Isaac ranks #31 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Fair Isaac has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fair Isaac's Operating Margin % compare to ZM and TEAM?
According to the Software industry distribution chart, Fair Isaac ranks #31 out of 2820 companies for Operating Margin %. This places Fair Isaac in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Fair Isaac's value of 58.19% is 1405.6% above this benchmark. Historically, Fair Isaac's own Operating Margin % has ranged from 17.53 to 50.85 over the past decade. While the company's 10-year median is 28.87 vs. the industry median of 3.87, Fair Isaac has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fair Isaac's current Operating Margin % of 58.19% is 1405.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Fair Isaac and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fair Isaac's current Operating Margin % is 58.19%, which is 102% above median its own 10-year median of 28.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fair Isaac stock overvalued right now?
Based on GuruFocus' analysis, Fair Isaac (FRA:FRI) is currently considered Significantly Undervalued. The stock's GF Value™ is €1,777.34, compared to a current price of €1,012.00 — trading 43.1% below its estimated fair value. The current Operating Margin % is 58.19%, which is 102% above median its 10-year median of 28.87 and 1405.6% above the Software industry median of 3.87. Fair Isaac's overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Fair Isaac (FRA:FRI), the current Operating Margin % is 58.19% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Fair Isaac (FRA:FRI) Overvalued in 2026?

Based on GuruFocus' analysis, Fair Isaac stock appears to be undervalued. The current stock price of €1,012.00 is trading 43.1% below its estimated GF Value™ of €1,777.34. GuruFocus considers Fair Isaac to be Significantly Undervalued.

Key valuation signals for FRA:FRI:

  • Operating Margin %: 58.19% (102% above median its 10-year median of 28.87)
  • GF Value™: €1,777.34 vs. price of €1,012.00 (43.1% below fair value)
  • GF Score™: 87/100 with 1 warning sign
  • Industry Position: 1405.6% above the Software median (#31 of 2820)

No single metric tells the full story. See the FRA:FRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Fair Isaac Business Description

Address 5 West Mendenhall, Suite 105, Bozeman, MT, USA, 59715
Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer. The firm's US-centric credit scores business accounts for most of the firm's revenue and profits and consists of business-to-business and business-to-consumer services. In addition to scores, Fair Isaac also sells software primarily to financial institutions for areas such as analytics, decision-making, customer workflows, and fraud.
87GF Score

Get the complete analysis for FRA:FRI

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1,012.00
Price
€1,777.34
GF Value