astuteoptics1
Oct 26, 1:15 AM
$FICO The near-term tape and sentiment on Fair Isaac Corporation look deeply negative, but fundamental signals indicate that regulatory fears remain overdone. Our read was contrarian bullish as of 11 Oct 2026. While short-term technicals are bearish—with shares at
$699.04 trading far below the 200-day moving average of
$1,192.02—and short interest sits at 9.3%, near-term fundamentals sit with us. FICO generated 24.1% revenue growth to
$2.4 billion and holds peer-leading 52.1% operating margins. The valuation discount at 13.9x FY27 consensus P/E reflects press-reported FHFA moves allowing VantageScore 4.0 adoption, but 113% free cash flow conversion demonstrates core operational resilience. The chart attached shows the full matrix. We would change our mind if VantageScore competition drives real margin decay or structural revenue impairment. (Disclosure: we're @astuteoptics1 and this is our own research.)
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