Fair Isaac Stock Is Down 40% This Year. Is Now the Time to Buy?

By Catie Hogan – Apr 15, 2026 at 7:51PM ESTKey PointsSen. Josh Hawley is calling on the Department of Justice to investigate Fair Isaac's pricing practices.The company's quarterly revenue increased 16% year over year in its most recent earnings report. Fair Isaac (FICO +2.19%), best known for its FICO credit scoring system, is facing intense pressure from multiple fronts in 2026, leading to a precipitous decline in its stock price. For investors who watched Fair Isaac soar in the first half of this decade, the recent troubles have many questioning whether this is a buying opportunity or a significant warning sign. ExpandNYSE: FICOFair IsaacToday's Change(2.19%) $22.06Current Price$1029.34Key Data PointsMarket Cap$24BDay's Range$1019.00 - $1047.0052wk Range$909.00 - $2217.60Volume21KAvg Vol361KGross Margin82.86% Competition, regulatory, and legal pressures have caused some investor anxiety this year. Fair Isaac's white-knuckle grip on credit scores could be loosening because of all three. VantageScore 4.0, offered by VantageScore Solutions, poses the greatest competitive threat because of its pricing. It could very much challenge FICO's domination in the mortgage sector. On the political side, Missouri Sen. Josh Hawley questioned whether Fair Isaac's extremely high operating margins and compound annual growth rate over the past few years reflect the market it competes within or monopolistic tendencies. Image source: Getty Images. Despite the bearish noise surrounding Fair Isaac, the business itself is doing well. Fair Isaac's revenue grew 16% year over year in the first quarter of 2026 to $512 million. A bright spot for the company was its B2B revenue, specifically mortgage originations, which grew 36% year over year. The stock trades down about 40% year to date, but the company's valuation metrics look much better now than they did a year ago. The stock's forward P/E ratio is just under 24, and its PEG ratio has fallen to 0.91. Fair Isaac's solid fundamentals are currently being weighed down by weakening sentiment. For long-term investors, the lower share price is compelling, but given regulatory uncertainty, it warrants cautious optimism. If political and regulatory pressures ease, Fair Isaac still scores very well as a long-term investment option.Read NextApr 14, 2026 •By Lyle DalyBest Wide-Moat Stocks for 2026 and How to InvestApr 13, 2026 •By Motley Fool YouTubeFair Isaac Corporation: A Closer Look at Its Market Position and Future ProspectsMar 26, 2026 •By Parkev Tatevosian, CFAWhy Is FICO Stock Crashing, and is it a Buying Opportunity?Mar 20, 2026 •By Matt Frankel, CFPUpcoming Stock Splits in 2026Apr 15, 2026 •By Parkev Tatevosian, CFACould Qualcomm Stock be One of the Best Semiconductor Stocks to Buy Today?Apr 15, 2026 •By Parkev Tatevosian, CFAWhy Is UiPath Stock Crashing, and is it a Buying Opportunity?About the AuthorCatie is a contributing Motley Fool stock market analyst covering technology, consumer goods, transportation, industrials, materials, and energy. She's the founder of the family finances newsletter, Cents of Humor. Catie was formerly the Head of Advice & Coaching at Parthean and an advisor at Element Financial Group. She's the writer and a producer of the hit off-Broadway show, Vape!

The Grease Parody. Catie has a degree in journalism from Emerson College.TMFCatieHoganStocks MentionedFair IsaacNYSE: FICO$1,030.81(+2.34%)+$23.53*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.