FICO · Research
Fair Isaac: Hold as 51.7% Credit-Scoring Operating Margin Trades at 1.71x Base DCF
FICO converts $2.53B of FY2026 revenue into a 51.7% GAAP operating margin and $884.5M of owner cash on just $2.1M of capex, yet at $1,653.48 shares trade 71.2% above our $965.54 base DCF amid mortgage regulatory scrutiny.
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Unrivaled credit-scoring pricing power already capitalized in the multiple
- FY2026 revenue
- $2.53B
- GAAP operating margin
- 51.7%
- GAAP FCF margin
- 42.2%
- 1-Yr R&D payback
- 1.56x
Every conforming US mortgage, auto securitization, and credit-card underwriting workflow speaks FICO Scores as its common risk unit, allowing Fair Isaac to raise wholesale mortgage score royalties repeatedly with near-100% incremental flow-through. Audited FY2026 revenue (ended September 30, 2026) reached $2.53B while GAAP operating income climbed 36.9% year over year to $1.27B.
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FICO Stock Profile →Related Coverage & Peer Deep-Dives
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Palantir leads our software index at 93.7 out of 100 (Leader) on 30.5% TTM revenue growth, 45.6% GAAP operating margin, and 2.73x 1-year R&D payback, yet at $168.45 per share the stock trades at 2.57x our $65.59 5-year DCF base fair value.