FICO Q4 2026 Revenue Rises 27% on Scores and Platform Growth

FICO (NYSE: FICO) reported 27% year-over-year revenue growth for its fiscal fourth quarter ended September 30, 2026, as higher business-to-business mortgage Scores revenue and expanding adoption of FICO Platform lifted both of its main segments. GAAP net income rose 13%, while non-GAAP earnings increased faster despite front-loaded marketing costs tied to the company’s Accenture partnership.

Quarterly revenue reached $657 million, up from $516 million a year earlier. GAAP net income was $175 million, or $8.12 per share, representing increases of 13% and 26%, respectively. Non-GAAP net income rose 28% to $239 million, while non-GAAP earnings per share increased 43% to $11.10. FICO said prior-quarter share repurchases helped per-share earnings grow faster than net income.

The quarter included several material items reflected in GAAP results but excluded from non-GAAP net income: a $65 million accrual for a proposed settlement of antitrust class-action lawsuits related to the Scores business, a $27 million restructuring charge for workforce reductions, and a $48 million non-operating gain from the sale of a minority equity investment.

Mortgage Scores remain the primary growth driver

Scores revenue increased 33% to $414 million. B2B revenue rose 39% to $356 million, mainly because of higher mortgage-origination score pricing, partly offset by weaker origination volumes. B2C revenue grew 3% to $58 million, supported primarily by indirect channel partners.

Mortgage-origination Scores revenue advanced 72% year over year in the fourth quarter. Average price per score increased from a year earlier, while volume declined by a high-single-digit percentage amid softer mortgage-origination activity. Sequentially, average price decreased because the business mix shifted toward home-equity lines of credit, which carry a lower average price than first-lien mortgage scores. FICO said it had not seen evidence of meaningful volume loss to competitors.

Mortgage revenue accounted for 67% of B2B Scores revenue during the quarter, down from 71% in the preceding period. Auto-origination Scores growth was supported by price and volume, while credit-card origination growth was driven by large issuers.

FICO continued to expand its Mortgage Direct License Program, which allows tri-merge resellers to calculate and distribute FICO Scores directly to lenders. Signed agreements covered resellers representing about 73% of U.S. mortgage volume, while the company was engaged with resellers representing approximately 100% of that market.

Adoption indicators for FICO Score 10T also increased. The adopter program reached 84 lenders, with $684 billion of eligible originations and $2.65 trillion of eligible servicing. FICO said the program represented more than 60% of Federal Housing Administration origination volume generated by the top 50 mortgage originators and more than 50% of first-lien units purchased by government-sponsored enterprises. The FHA has announced that FICO Score 10T will be available to approved lenders beginning January 1, 2027.

Platform growth lifts Software revenue and recurring metrics

Software revenue rose 19% to $243 million. Platform revenue increased 84%, driven by FICO Platform adoption and customer migrations, while non-Platform revenue declined 12% as migrations more than offset higher point-in-time revenue. SaaS revenue grew 29%.

Software annual recurring revenue increased 14% to $851 million. Platform ARR climbed 72% to $453 million and represented 53% of total ARR at quarter-end. Excluding migrations, Platform ARR grew in the mid-40% range. Non-Platform ARR declined 18% to $398 million, reflecting migrations, end-of-life products and some net usage declines, although the presentation indicated a usage gain in the fourth quarter.

Platform dollar-based net retention reached 156%, compared with 112% a year earlier, while the total Software retention rate was 112%. Non-Platform retention remained at 82%.

Trailing-12-month annual contract value bookings rose 36% to $140 million. Fourth-quarter ACV bookings totaled $44.7 million and included new contracts, incremental business on renewals and additional use cases. FICO said it is pursuing a land-and-expand strategy across about 500 named global accounts, including roughly 350 financial-services companies and 150 customers in sectors such as automotive, telecommunications and insurance.

During the quarter, FICO announced general availability of the next generation of FICO Platform. The company is positioning the system around real-time customer profiles, greater control for business teams and closed feedback loops designed to improve decision quality. It also introduced enterprise fraud capabilities intended to connect customer and transaction behavior across channels.

Cash flow supports debt reduction and investment

FICO’s non-GAAP operating margin was 61%, compared with 54% in the prior-year quarter. Operating expenses excluding restructuring and the investment-sale gain were $363 million, including the $65 million proposed settlement accrual. Excluding that accrual, operating expenses were $298 million, down 4% sequentially. The company attributed expense trends mainly to personnel and marketing spending, including front-loaded costs supporting the Accenture partnership, while research and development investment reflected continued hiring for FICO Platform.

Trailing-12-month free cash flow increased 40% to $1.034 billion. FICO paused share repurchases in the fourth quarter and directed free cash flow toward repaying the term loan used to fund its third-quarter accelerated share repurchase. The company ended the period with net debt equal to 3.29 times EBITDA.

Management identified debt repayment, reinvestment and share repurchases as potential uses of free cash flow but did not provide a numerical financial forecast in the presentation.

The company’s results remain exposed to mortgage-market activity, with fourth-quarter origination-score volumes already reflecting softer conditions. Other disclosed considerations include declining non-Platform revenue as customers migrate to FICO Platform, implementation and marketing costs associated with growth initiatives, and uncertainty surrounding the proposed Scores-related antitrust settlement. FICO also cautioned that forward-looking statements are subject to risks detailed in its regulatory filings.