Fair Isaac Corporation Gains 39% Q2 Revenue, Price Target Lifted to $1,650
Needham raised Fair Isaac Corporation's price target to $1,650, implying a 57.9% upside from current valuation. The company delivered Q2 revenue of $692 million (+39%) and GAAP net income of $264 million (+63%), but faces pressure from government-backed rival credit scores.
1. Price Target Raised by Needham
Needham adjusted Fair Isaac Corporation’s price target to $1,650, signaling a projected 57.9% upside from its current valuation. This move reflects confidence in the company’s continued growth trajectory following its latest quarterly performance.
2. Robust Q2 Financial Results
In Q2 2026, Fair Isaac Corporation reported revenue of $692 million, a 39% year-over-year increase, and GAAP net income of $264 million, up 63%, resulting in GAAP EPS of $11.14, a 69% gain. This marks the fourth straight quarter of surpassing revenue and EPS estimates.
3. Segment Performance and Competitive Pressures
Growth was led by the Scores segment, which saw revenue climb 60% driven by both B2B and B2C channels, while the Software segment’s non-platform revenue fell 12%. The company now faces competitive headwinds as Fannie Mae and Freddie Mac adopt a rival credit scoring model.