FICO reported fiscal second‑quarter 2026 results, posting revenue of $691.7 million, up 39% from $498.7 million in Q2 2025. Net income reached $264.5 million, and GAAP earnings per share were $11.14, while non‑GAAP EPS rose to $12.50. The company’s Scores segment generated $475.0 million and its Software segment $217 million, together driving the revenue increase.
Revenue growth was led by the Scores business, which benefited from a 72% jump in B2B revenue and a 127% surge in mortgage‑originations revenue compared with the same quarter a year earlier. The Software segment also expanded, adding $217 million in revenue, a modest 7% rise that helped offset the larger gains in Scores.
The earnings beat was driven by a 65% non‑GAAP operating margin, up from 58% in Q2 2025, reflecting pricing power and operational leverage. Cost growth of 14% was offset by higher mix and scale, allowing the company to deliver a $12.50 non‑GAAP EPS versus analyst expectations of $10.68–$11.03, a beat of roughly 13–15%.
Management raised full‑year guidance, citing continued demand and margin expansion. "Revenue guidance is now $2.45 billion, GAAP net income guidance is now $825 million with GAAP earnings per share of $35.60, and non‑GAAP net income guidance is now $946 million with non‑GAAP earnings per share of $40.45," said William Lansing, President, CEO & Director. He added, "We had a very strong quarter and a great start to the first half of our fiscal year. Based on our results and outlook, we are increasing our fiscal 2026 guidance."
Investors reacted positively, citing the revenue beat, the strong non‑GAAP EPS performance, the guidance upgrade, and the robust Scores segment growth. The company also highlighted its strategic pricing of the FICO Score 10T model, which was updated to $0.99 per score plus a $65 funding fee, aimed at maintaining market share against VantageScore. "We anticipate no loss of volume to Vantage in this fiscal year. That's in our -- that's assumed in our guide," said Lansing.
Additional management commentary underscored the company’s confidence: "We reported Q2 revenues of $692 million and delivered free cash flow of $214 million," said Lansing. "To support the goal of increased homeownership and bring the benefits of increased competition to the marketplace, we updated our FICO Score 10T performance model pricing in the FICO mortgage direct licensing program from $4.95 per score plus $33 funding fee to $0.99 per score plus $65 funding fee."
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