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Is FICO’s Mortgage and Grab Finance Deals Altering The Investment Case For Fair Isaac (FICO)?

Simply Wall St·02/17/2026 22:25:11
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  • In February 2026, FICO announced a partnership with MeridianLink to embed its Mortgage Direct License Program into MeridianLink’s mortgage platform, while Grab Finance adopted FICO Platform to power 22 credit decision workflows across six Southeast Asian markets.
  • Together, these moves highlight how FICO is extending its scoring and decisioning technology deeper into mortgage distribution and into data-scarce emerging markets.
  • Next, we’ll examine how embedding FICO Scores via MeridianLink’s platform could influence Fair Isaac’s investment narrative built around cloud decisioning growth.

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Fair Isaac Investment Narrative Recap

To hold Fair Isaac, you need to believe that its core FICO Scores franchise can withstand regulatory and competitive pressure while the higher‑margin cloud decisioning platform becomes a larger growth driver. The MeridianLink and Grab Finance wins reinforce this “scores plus platform” story, but do not fundamentally change the near term catalyst around accelerating platform ARR, nor the key risk that mortgage score competition and lender choice could still pressure pricing and concentration.

The MeridianLink integration looks particularly relevant here, because it speaks directly to that mortgage concentration risk. By embedding the Mortgage Direct License Program into a widely used workflow, FICO is trying to keep its scores deeply tied into tri‑merge resellers and lenders’ day‑to‑day processes, even as FHFA rule changes and alternative models like VantageScore gather attention, which matters for how durable the near term scores cash flows appear alongside platform growth.

Yet while partnerships can help, investors should also be aware of how concentrated revenue in a few powerful mortgage and bureau partners could become a problem if...

Read the full narrative on Fair Isaac (it's free!)

Fair Isaac's narrative projects $2.9 billion revenue and $1.1 billion earnings by 2028. This requires 14.3% yearly revenue growth and about a $467 million earnings increase from $632.6 million today.

Uncover how Fair Isaac's forecasts yield a $2023 fair value, a 50% upside to its current price.

Exploring Other Perspectives

FICO 1-Year Stock Price Chart
FICO 1-Year Stock Price Chart

Some of the lowest ranked analysts were already cautious, assuming revenue of about US$2.7 billion and earnings near US$1.0 billion by 2028, and your view on partner dependence in mortgages could look very different in light of the MeridianLink deal.

Explore 15 other fair value estimates on Fair Isaac - why the stock might be worth as much as 64% more than the current price!

Form Your Own Verdict

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.