FICO · 10-K · 2026A · Full report

Income Tax Rate Changes

FAIR ISAAC CORP · 2026-11-06 · Importance 63 · Surprise 64

FICO’s effective income tax rate increased to 24.1% in fiscal 2026 from 18.8% in fiscal 2025, a 5.3 percentage-point increase. The company attributed the higher rate to a decrease in excess tax benefits related to share-based compensation. Income tax provision increased $114.4 million to $265.1 million in fiscal 2026, while income before taxes rose to $1.100 billion from $802.6 million.

Key facts

• An increase in FAIR ISAAC CORP’s income tax valuation allowance could materially adversely affect its income tax provision and net income in the period of the increase. source
• Changes in the recognition or measurement of FAIR ISAAC CORP’s uncertain tax positions could materially increase or decrease income tax expense and materially affect its effective tax rate and operating results in the period of the change. source
• FAIR ISAAC CORP’s effective income tax rates were 24.1% in fiscal 2026, 18.8% in fiscal 2025, and 20.1% in fiscal 2024. source
• FAIR ISAAC CORP’s effective tax rate increased in fiscal 2026 compared with fiscal 2025 because of a decrease in excess tax benefits related to share-based compensation. source