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With a market cap of $47.9 billion, Fair Isaac Corporation (FICO) is a leading provider of advanced analytics and digital decision-making technologies that empower businesses to automate processes and optimize decision-making. It serves diverse industries worldwide, offering solutions to enhance customer interactions, mitigate risks, and drive profitability. The Bozeman, Montana-based company is slated to announce its fiscal Q1 2025 earnings results on Thursday, Jan. 23.
Ahead of this event, analysts expect the financial services company to report a profit of $5.04 per share, a 30.2% growth from $3.87 per share in the year-ago quarter. The company has exceeded Wall Street's earnings expectations in two of the past four quarters while missing on two other occasions. In the most recent quarter, FICO missed the consensus EPS estimate by a 1.8% margin.
For fiscal 2025, analysts expect FICO to report EPS of $24.82, marking a growth of 39.6% from $17.78 in fiscal 2024. In addition, EPS is expected to grow 29.9% year-over-year to $32.24 in fiscal 2026.
Over the past 52 weeks, shares of Fair Isaac have outpaced the broader markets, surging 75.2%, while the broader S&P 500 Index ($SPX) has gained 26.3%, and the Technology Select Sector SPDR Fund (XLK) has returned 27.1% on a YTD basis.
Shares of FICO soared 4.1% following its Q4 earnings release on Nov. 6, driven by strong financial performance and robust guidance. The company reported a 16.4% year-over-year increase in revenue to $453.8 million, with the Scores segment showing a remarkable 27% growth due to higher unit prices in B2B solutions. Adjusted EPS of $6.54, reflecting a 30.5% increase from the prior year. FICO's fiscal 2025 guidance also projected double-digit growth across all metrics, signaling confidence in sustained profitability and market expansion.
Analysts' consensus view on FICO stock remains moderately optimistic, with a "Moderate Buy" rating overall. Out of 14 analysts covering the stock, seven recommend a "Strong Buy," two "Moderate Buys," and five give a "Hold" rating. The average analyst price target for FICO is $2,294.78, suggesting a potential upside of 16.7% from the current levels.
