Barclays has cut its price target on Fair Isaac Corp. (NYSE: FICO), citing the mortgage pricing outlook as the primary driver. The move adds to a growing list of analyst revisions that have reshaped expectations for the credit-scoring giant in recent weeks.
The bank's decision, reported on August 10, follows a period of heightened scrutiny on FICO's mortgage-related revenue stream. Mortgage origination scores accounted for 71% of B2B Scores revenue and 62% of total Scores revenue in the third quarter of fiscal 2026, with that segment surging 97% year-over-year to become the company's single largest revenue concentration.
That concentration has drawn regulatory attention. Federal Housing Finance Agency Director Bill Pulte publicly called for more affordable credit scoring on March 24, and Missouri Senator Josh Hawley launched a formal probe into FICO's pricing strategies. The company raised its mortgage wholesale royalty from $4.95 to $10.00 per score for 2026, a decision that now carries approximately $1.13 billion of annualized revenue at near 95% incremental margin.