Fair Isaac (FICO) is higher today after releasing fiscal second-quarter 2026 results (quarter ended March 31, 2026) and lifting its outlook for the full fiscal year. The company reported revenue of $691.7 million and GAAP diluted EPS of $11.14, alongside a guidance raise that signaled stronger-than-expected operating momentum.

FICO updated fiscal 2026 guidance to revenue of $2.45 billion (up from $2.35 billion), GAAP net income of $825 million (up from $795 million), and non-GAAP EPS of $40.45 (up from $38.17). Investors also focused on the quarter’s cash generation: operating cash flow of $223.4 million and free cash flow of $214.3 million, both sharply higher versus the prior-year quarter.

The biggest upside surprise came from the Scores segment, where revenue grew 60% year over year to $475.0 million, with B2B scores revenue up 72%. Management attributed the B2B growth primarily to a higher mortgage origination scores unit price and higher mortgage origination volumes; software revenue increased 7% to $216.7 million, while Software ARR was up 10% year over year, including 49% growth in platform ARR and a total software dollar-based net retention rate of 109%.

The next catalyst is management’s webcast and Q&A scheduled for April 28, 2026 at 4:30 p.m. ET, where investors will listen for details on sustainability of mortgage-related score pricing, score volumes, and whether platform ARR growth can offset declines in non-platform ARR. Any commentary on competitive dynamics in credit scoring and demand trends across financial services will likely shape whether today’s rally holds.