FICO · 10-K · 2026A · Full report

Operating Expense Trends

FAIR ISAAC CORP · 2026-11-06 · Importance 51 · Surprise 38 · In source text

Research and development expense increased $21.0 million, or 11%, to $209.3 million in fiscal 2026, mainly from $21.9 million of additional infrastructure and facilities costs, including third-party data center hosting. Selling, general and administrative expense rose $168.1 million, or 33%, to $681.1 million, with increases of $68.3 million in personnel and labor, $68.0 million in outside services, and $31.8 million in marketing and other costs. The outside-services increase included a $65.0 million liability recorded in fourth-quarter fiscal 2026 for a proposed antitrust class-action settlement, as well as higher consulting costs. R&D declined to 8% of revenue from 9%, while SG&A rose to 27% of revenue from 26%.

Key facts

• FAIR ISAAC CORP’s fiscal 2026 segment revenue increased $544.0 million, while operating income increased $340.8 million, primarily due to revenue growth partially offset by increases in corporate expenses, segment operating expenses, share-based compensation, and restructuring charges. source
• FAIR ISAAC CORP’s fiscal 2026 selling, general and administrative expenses increased $168.1 million, primarily due to increases of $68.3 million in personnel and labor costs, $68.0 million in outside services costs, and $31.8 million in marketing and other costs. source
• FAIR ISAAC CORP’s research and development expenses were 8% of revenues in fiscal 2026, down from 9% in fiscal 2025. source
• FAIR ISAAC CORP’s selling, general and administrative expenses increased to 27% of revenues in fiscal 2026 from 26% in fiscal 2025. source
• FAIR ISAAC CORP’s Software segment operating income margin decreased to 28% from 30%, primarily due to higher third-party data center hosting costs and lower sales of higher-margin software recognized at a point in time. source
• FAIR ISAAC CORP’s fiscal 2026 research and development expenses increased $21.0 million, primarily due to a $21.9 million increase in infrastructure and facilities costs and a $4.8 million increase in personnel and labor costs, partially offset by a $5.7 million decrease in outside services and other costs. source

Impact estimates