Fair IsaacFICO +4.29%87 Pretax Margin % is 51.47% as of Mar. 2026, which is 90% above its 10-year median of 27.04. GuruFocus rates FICO with a GF Score™ of 87/100 and a GF Value™ of $2,086.40 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,823 Software companies, Fair Isaac ranks better than 96.99% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Fair Isaac's Pre-Tax Income for the
three
months ended in Mar. 2026 was $356 Mil. Fair Isaac's Revenue for the
three
months ended in Mar. 2026 was $692 Mil. Therefore, Fair Isaac's pretax margin for the quarter that ended in Mar. 2026 was 51.47%.
The historical rank and industry rank for Fair Isaac's Pretax Margin % or its related term are showing as below:
FICO'
s Pretax Margin % Range Over the Past 10 Years
Min: 15.69 Med: 27.04 Max: 43.77
Current: 43.77
FICO's Pretax Margin % is ranked better than 96.99% of 2823
companies
in the Software industry
Industry Median: 3.54
vs FICO: 43.77
Fair Isaac (NYSE:FICO) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Fair Isaac Pretax Margin % Related Terms
Fair Isaac Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Fair Isaac's Pretax 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.
For the Software - Application subindustry, Fair Isaac's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Fair Isaac's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Fair Isaac's Pretax Margin % falls into.
* 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 (FICO) has a Pretax Margin % of 51.47% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Fair Isaac and its competitors. This is 90% above median its historical median of 27.04. Over the past decade, Fair Isaac's Pretax Margin % has ranged from 15.69 to 43.77. According to the industry distribution chart, Fair Isaac ranks #85 out of 2823 companies in the Software industry, placing it in the top 3%.
Is Fair Isaac's Pretax Margin % too high?
Fair Isaac's current Pretax Margin % of 51.47% is 90% above median its 10-year median of 27.04. Over the past 10 years, this metric has ranged from a low of 15.69 to a high of 43.77. The Software industry median Pretax Margin % is 3.54. Fair Isaac's value of 51.47% is 1354% above this industry median. Based on the distribution chart, Fair Isaac ranks #85 out of 2823 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 Pretax Margin % compare to ZM and TEAM?
According to the Software industry distribution chart, Fair Isaac ranks #85 out of 2823 companies for Pretax Margin %. This places Fair Isaac in the top 3% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.54. Fair Isaac's value of 51.47% is 1354% above this benchmark. Historically, Fair Isaac's own Pretax Margin % has ranged from 15.69 to 43.77 over the past decade. While the company's 10-year median is 27.04 vs. the industry median of 3.54, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.54, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fair Isaac's current Pretax Margin % of 51.47% is 1354% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Fair Isaac and its competitors. For the Software industry, the median Pretax Margin % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fair Isaac's current Pretax Margin % is 51.47%, which is 90% above median its own 10-year median of 27.04. 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 (FICO) is currently considered Significantly Undervalued. The stock's GF Value™ is $2,086.40, compared to a current price of $1,146.60 — trading 45% below its estimated fair value. The current Pretax Margin % is 51.47%, which is 90% above median its 10-year median of 27.04 and 1354% above the Software industry median of 3.54. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Fair Isaac (FICO), the current Pretax Margin % is 51.47% 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 (FICO) Overvalued in 2026?
Based on GuruFocus' analysis, Fair Isaac stock appears to be undervalued.
The current stock price of $1,146.60 is trading 45% below its estimated GF Value™ of $2,086.40.
GuruFocus considers Fair Isaac to be Significantly Undervalued.
Key valuation signals for FICO:
Pretax Margin %: 51.47% (90% above median its 10-year median of 27.04)
GF Value™: $2,086.40 vs. price of $1,146.60 (45% below fair value)
Industry Position: 1354% above the Software median (#85 of 2823)
No single metric tells the full story. See the FICO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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
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