BofA Securities has resumed coverage of Fair Isaac Corp. (NYSE:FICO) with a Buy rating and a price target of $1,900, the firm said Monday. That target equates to about a 39% increase from the then-current share price of $1,364.81 and is broadly consistent with analyst optimism: InvestingPro data referenced by the firm shows an average projected upside of 49% among the wider analyst community.
The reinstatement reflects BofA’s assessment of Fair Isaac’s business beyond its core FICO Score product. The analyst emphasized that the FICO Score remains the entrenched industry standard for lending decisions and continues to serve as a major profit center for the company, supported by proprietary data assets. The firm pointed to FICO’s 82.9% gross profit margin and 16.2% revenue growth over the last 12 months as evidence of the business’s profitability and momentum.
As part of its rationale, BofA highlighted Fair Isaac’s Mortgage Direct Licensing program. That initiative, the firm said, expands the company’s pricing power and ability to capture value by permitting resellers to distribute scores directly to customers. BofA views the licensing program as a meaningful driver of incremental revenue and an element that can enhance FICO’s commercial leverage.
In addition to licensing, BofA pointed to improving performance in the company’s software segment. The analyst noted that software bookings are reporting higher annual contract values, a dynamic the firm interprets as a foundation for continued margin and revenue expansion. Taken together, BofA described a multi-year opportunity for FICO to grow both top line and margins.
Earnings update
Fair Isaac reported first-quarter results for fiscal year 2026 that beat consensus expectations. The company delivered non-GAAP earnings of $7.33 per share versus an expected $7.07. Revenue came in at $512 million, topping forecasts of $500.72 million and representing a 16% increase compared with the same period a year earlier.
Despite the upside on both earnings and revenue, FICO’s stock fell 2.8% in after-hours trading following the release. The company did not report any mergers or acquisitions in the period, and analyst firms did not register upgrades or downgrades in the reports cited. These items together captured the primary market and operational developments for the quarter.
Overall, BofA’s return to coverage frames Fair Isaac as a company with entrenched market positions, attractive unit economics and identifiable growth initiatives in licensing and software. The firm’s $1,900 price target and Buy rating reflect that view, while recent quarterly results supplied immediate evidence of revenue and earnings momentum even as the stock experienced near-term volatility.