Fair Isaac Stock Outlook: Is Wall Street Bullish or Bearish?

Core Insights - Fair Isaac Corporation (FICO) is a software company specializing in analytic, software, and digital decisioning technologies, with a market cap of $42.4 billion [1] Performance Overview - FICO has significantly underperformed the broader market, with stock prices dropping 25.8% over the past 52 weeks and 12.2% year-to-date, while the S&P 500 Index has returned 12% and 14% respectively [2] - The company also lagged behind the Technology Select Sector SPDR Fund, which saw a 19.7% increase over the past 52 weeks and 20.3% year-to-date [3] Financial Results - Following the release of Q3 results on November 5, FICO's stock gained 2.8%. The company's topline for the quarter increased 13.6% year-over-year to $515.8 million, surpassing consensus estimates by 78 basis points [4] - Adjusted EPS for the quarter rose 18.3% year-over-year to $7.74, exceeding market expectations [4] Future Projections - For the full fiscal year 2025, analysts project an adjusted EPS of $33.66, reflecting a 34.3% year-over-year increase. FICO has a mixed earnings surprise history, missing estimates once and surpassing them three times in the past four quarters [5] - Among 18 analysts covering FICO, the consensus rating is a "Moderate Buy," with 10 "Strong Buys," three "Moderate Buys," four "Holds," and one "Strong Sell" [5] Analyst Ratings - On November 6, JP Morgan analyst maintained a "Neutral" rating on FICO, raising the price target from $1,750 to $1,825. The mean price target of $2,005.56 indicates a 14.7% premium to current price levels, while the highest target of $2,400 suggests a 37.2% upside potential [7]