Why Fair Isaac (FICO) Still Looks Moat-Protected Despite Credit-Score Competition

Fair Isaac Corporation (NYSE:FICO) is one of the best stocks to buy with wide moats.

The latest moat-relevant update came on April 28, 2026, when Fair Isaac Corporation (NYSE:FICO) reported fiscal second-quarter revenue of $691.7 million, up 39% year over year, and raised its full-year fiscal 2026 guidance. The company’s Scores segment revenue rose 60% to $475.0 million, while B2B Scores revenue increased 72%, driven mainly by higher mortgage origination scores, unit pricing, and higher mortgage origination volume. Software revenue also rose 7%, with platform software annual recurring revenue up 49% and platform dollar-based net retention at 136%.

That makes the update useful for the wide-moat angle because FICO’s moat is most visible when customers keep paying even as regulators push more credit-score competition into the mortgage market. FHFA said approved lenders may now use either Classic FICO or VantageScore 4.0 on an interim basis, while FICO 10T remains approved and planned for future use. Even with that pressure, FICO’s latest quarter showed strong pricing power in its core Scores business.

Why Fair Isaac (FICO) Still Looks Moat-Protected Despite Credit-Score Competition

Fair Isaac Corporation (NYSE:FICO) provides analytics software, credit scores, decisioning tools, fraud prevention products, and related data-driven solutions for lenders, financial institutions, insurers, retailers, telecom companies, and other enterprises.

While we acknowledge the risk and potential of FICO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FICO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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