FICO
Earnings season, but make it spicy
Fair Isaac came out swinging in Q2 2026, with revenue up 39% and Scores revenue ripping 60%. That’s not a “nice quarter” number — that’s a “reroute the conversation away from valuation” number.
The old cash cow still looks ridiculous
The big story here is the Scores business, which carries a 91% operating margin. That’s the kind of profitability that makes other software companies look like they’re trying to light money on fire in a rented warehouse. Mortgage market strength helped the quarter, and FICO’s pricing power clearly isn’t going anywhere.
And then there’s the shiny new layer
The FICO Platform is the part management wants you to notice if you’re thinking beyond the legacy credit-scoring machine. It’s high-growth, AI-driven, and gives the company a software story on top of its already very sticky moat.
Why investors are paying attention
Yes, there are still risks hanging around the edges — regulation, and VantageScore sniffing around the neighborhood like an ambitious rival. But the combo of strong buybacks, forward EPS growth, and a business that can still flex this kind of margin muscle is why the stock suddenly looks more reasonable.
Big picture: if you were waiting for FICO to prove it still deserves a premium, this quarter was basically the company yelling, “Ahem, hello, we’re still here.”