Fair Isaac Corporation (FICO): A Bull Case Theory

We came across a bullish thesis on Fair Isaac Corporation on Stock Analysis Compilation’s Substack. . In this article, we will summarize the bulls’ thesis on FICO. Fair Isaac Corporation’s share was trading at $1,842.78 as of July 2^nd. FICO’s trailing and forward P/E were 79.36 and 50.51 respectively according to Yahoo Finance.

FICO is a global leader in data analytics and decision management software, best known for its FICO Score, the industry standard for consumer credit risk in the U.S. Despite consistently compounding earnings at over 20% annually for the past decade, its stock recently declined over 30% to a two-year low following its earnings report, creating an attractive entry point. The company’s fundamentals remain strong, with its latest results beating expectations—revenue grew 15%, operating margins expanded by 5%, and EPS increased 27% year-on-year.

FICO’s solutions, powered by big data, AI/ML, and cloud computing, serve a wide range of industries including financial services, insurance, healthcare, and retail, helping organizations make better decisions, manage risk, and comply with regulations. However, the market reacted negatively due to concerns around muted software growth, macroeconomic uncertainty potentially delaying deal closures and usage-based revenue, and ongoing regulatory scrutiny over its 90% market share in B2B credit scoring, which could temper pricing power.

Despite these near-term headwinds, the company continues to innovate, as highlighted during its recent FICO World event where it unveiled new AI-driven products with strong commercial potential. Management remains confident, reaffirming guidance for 15% revenue and 20% EPS growth this year, and announced a $1 billion share buyback, reinforcing its belief in the company’s long-term value. Overall, FICO represents a high-quality, durable business with a strong competitive moat and an attractive risk/reward profile, with the recent share price decline providing a rare opportunity to invest in its long-term growth story.

Previously we covered a bullish thesis  on Fair Isaac Corporation (FICO) by Ryan Reeves in May 2025, which highlighted the company’s dominant credit scoring position, strong pricing power, and exceptional profitability. The company’s stock price has depreciated approximately by 11% since our coverage. This is because macro uncertainty and regulatory concerns weighed on sentiment. The thesis still stands as FICO’s competitive moat remains intact. Stock Analysis Compilation shares a similar view but emphasizes recent innovation and earnings strength.

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Disclosure: None. This article was originally published at Insider Monkey.