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With a market cap of $44.3 billion, Fair Isaac Corporation (FICO) is a leading analytics and decision management technology company that helps businesses automate and optimize critical decisions. Operating globally across industries like financial services, insurance, healthcare, and retail, FICO offers solutions such as predictive scoring, fraud detection, customer engagement, and credit risk management.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and Fair Isaac fits this criterion perfectly. Based in Bozeman, Montana, FICO powers hundreds of billions of decisions annually through its Scores and Software segments, including its flagship FICO Platform and other advanced decision tools.
However, the global analytics software leader has fallen 24.4% from its 52-week high of $2,402.51. Fair Isaac shares have declined 11.2% over the past three months, lagging behind the broader Nasdaq Composite's ($NASX) 9.1% dip during the same period.
Longer term, FICO stock has dipped 8.8% on a YTD basis, aligning with NASX's decrease over the same period. Nevertheless, Fair Isaac has surged 46.9% over the past 52 weeks, outperforming NASX's 8.9% gain.
FICO has been trading above both its 50-day and 200-day moving averages since last year. But, the stock has fallen below its 50-day moving average since mid-December 2024.
Despite reporting weaker-than-expected Q1 2025 adjusted EPS of $5.79 and revenue of $440 million on Feb. 4, FICO shares rose 2.1% the next day as the high-margin Scores segment grew 23% to $235.7 million, with B2B scores up 30% from higher prices and mortgage volumes. The FICO Platform’s 20% ARR growth signaled strong momentum in cloud-based recurring revenue. Additionally, free cash flow surged 55% to $186.8 million, boosting investor confidence.
Management’s reaffirmed guidance for double-digit revenue and earnings growth for fiscal 2025 further reassured investors.
In contrast, rival Salesforce, Inc. (CRM) has underperformed FICO, declining 16.7% on a YTD basis and a dip of 7.6% over the past year.
Despite Fair Isaac's outperformance relative to Nasdaq over the past year, analysts remain cautiously optimistic about its prospects. Among the 14 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $2,169.43.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
