Fair Isaac Corporation's Q2 Earnings Set to Surprise Investors

Fair Isaac Corporation is projected to grow its Q2 profit by 20%. Its EPS forecasts signal strong sentiment, despite recent performance inconsistencies. Investors are watching closely for earnings announcements that could affect stock prices.

Date: 14-04-2025

AI Rating: 7

**Earnings Insights**:

Fair Isaac Corporation (FICO) is set to report significant earnings, with expectations of a non-GAAP earnings per share (EPS) of $6.11 for Q2 2025, representing a robust 20% increase from $5.09 in the same quarter last year. This forecast shows substantial growth and aligns positively with investor expectations.

Furthermore, for the full fiscal year 2025, the company anticipates non-GAAP EPS reaching $23.89, a remarkable 34.4% increase from $17.78 in fiscal 2024. Analysts predict even further growth into fiscal 2026, with an estimated 31.5% increase to $31.41 per share. Such projections indicate a strong momentum in earnings, which typically buoy stock prices.

**Revenue and Net Income**:

In its recent quarterly report, FICO's revenue grew 15.2% year-over-year to $440 million, despite falling short of market expectations. Notably, revenue from its Scores segment surged significantly by 22.7%, reflecting a solid performance. The non-GAAP net income rose by 18.6% to $143.8 million. While the overall revenue missed analyst targets, the growth rates suggest a positive trend, which generally encourages investor confidence.

**Market Performance and Sentiment**:

FICO’s stock has recorded a notable 58.5% rise over the last year, far outperforming both the S&P 500 Index's 3.2% gain and the Technology Select Sector SPDR Fund's drop. This significant outperformance in a competitive market indicates robust investor interest and confidence in the company's future.

Despite some volatility in their earnings reports, including a weaker-than-expected Q1 2025 result that nonetheless saw the stock rise the next day, the consensus among analysts remains optimistic, with a 'Moderate Buy' rating. The price target of $2,121.21 suggests a potential upside of 12.3% from the current levels, further indicating positive outlook from the market.

Stocks: FICO