Fair Isaac to Report Q3 Earnings: What's in Store for the Stock?

Fair Isaac Corporation FICO is set to report its third-quarter fiscal 2025 results on July 30.

The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $518.8 million, suggesting an increase of 15.8% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at $7.73 per share, down a couple of cents over the past 30 days, indicating 23.7% year-over-year growth.

FICO’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters while beating the same on the remaining one, the average negative surprise being 0.97%.

Fair Isaac Corporation Price and EPS Surprise

Fair Isaac Corporation price-eps-surprise | Fair Isaac Corporation Quote

Let’s see how things have shaped up before this announcement.

Factors to Note

FICO’s third-quarter fiscal 2025 performance is expected to have benefited from sustained growth in Scores revenues, driven by the adoption of its most advanced scoring solutions and strong consumer demand.

In the second quarter of fiscal 2025, FICO reported strong momentum in the adoption of FICO Score 10T, especially within the mortgage sector, as new lenders — such as Bay Equity, Quontic Bank and Michigan First Credit Union — joined the early-adopter program, reflecting growing confidence in the model’s predictive power. This trend is expected to have extended into the fiscal third quarter, strengthening the company’s position as a key scoring provider for non-GSE mortgage originations. 

FICO’s Professional Services revenues, which dipped in the second quarter of fiscal 2025 due to certain incomplete project deliverables at the quarter's end, caused revenues originally scheduled for March to be recognized in April. This is likely to have supported a sequential rise in segment revenues in the to-be-reported quarter.

Despite a cautious macro environment, FICO’s Software business remains resilient. The company has expressed confidence in a return to stronger annual recurring revenue growth, driven by a healthy deal pipeline and solid net retention among existing platform clients. These bookings, along with its continued land-and-expand strategy, are likely to have supported growth in platform-related revenues in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

FICO currently has an Earnings ESP of -1.71% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Enovix Corporation ENVX has an Earnings ESP of +10.45% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enovix shares have appreciated 33.9% year to date. Enovix is set to report its second-quarter 2025 results on July 31.

nVent Electric NVT currently has an Earnings ESP of +1.03% and a Zacks Rank #2.

nVent Electric shares are up 13.1% year to date. nVent Electric is set to report its second-quarter 2025 results on Aug. 1.

CommScope COMM presently has an Earnings ESP of +19.18% and a Zacks Rank #1. 

CommScope shares have returned 55.1% year to date. CommScope is scheduled to report its second-quarter 2025 results on Aug. 7.

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This article originally published on Zacks Investment Research (zacks.com).

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