Fair Isaac Corporation stock research
FY2026 Q1
Fair Isaac (FICO) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was essentially stable compared with the prior quarter, while cost of revenue was lower, causing gross profit to remain nearly flat and gross margin to improve slightly. Versus the same quarter one year earlier, revenue was higher, cost of revenue was unchanged, and gross profit rose, resulting in a stronger gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q1
Revenue was essentially stable compared with the prior quarter, while cost of revenue was lower, causing gross profit to remain nearly flat and gross margin to improve slightly. Versus the same quarter one year earlier, revenue was higher, cost of revenue was unchanged, and gross profit rose, resulting in a stronger gross margin.
- The improvement in gross margin from the preceding quarter was driven by lower cost of revenue relative to stable revenue. In the year-ago comparison, the margin increase resulted from higher revenue with unchanged cost of revenue.
- Gross margin improved both sequentially and year-over-year, with the current quarter showing a higher ratio than both periods. Revenue and gross profit were slightly below the prior quarter but well above the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
83.0%
Gross profit
$424.7M
Revenue
$512.0M
Cost of revenue
$87.3M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+2.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $498.7M | $411.1M | $87.6M | 82.4% |
| Jun 30, 2025 | $536.4M | $448.8M | $87.6M | 83.7% |
| Sep 30, 2025 | $515.8M | $424.6M | $91.2M | 82.3% |
| Dec 31, 2025 | $512.0M | $424.7M | $87.3M | 83.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.6 pts
Year-over-year change
Dec 31, 2024
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the preceding quarter was driven by lower cost of revenue relative to stable revenue. In the year-ago comparison, the margin increase resulted from higher revenue with unchanged cost of revenue.
Gross margin improved both sequentially and year-over-year, with the current quarter showing a higher ratio than both periods. Revenue and gross profit were slightly below the prior quarter but well above the year-ago quarter.
Monitor whether cost of revenue remains at its current level, as it directly influences gross margin stability.