Why Fair Isaac’s New Strategy Is a Game-Changer for FICO Stock[Stocks](https://moneymorning.com/category/article/stocks/) # Why Fair Isaac’s New Strategy Is a Game-Changer for FICO Stock  by Omor IE  October 2, 2025  Share it: **Fair Isaac** ( [FICO](https://moneymorning.com/stocks/fico)) surged by over 22% today after announcing it will allow lenders to bypass credit bureaus and buy [FICO](https://moneymorning.com/stocks/fico) scores directly. This is a move that could reshape the credit scoring industry significantly. The company's new " [FICO](https://moneymorning.com/stocks/fico) Mortgage Direct License Program" allows mortgage lenders to access [FICO](https://moneymorning.com/stocks/fico) scores directly. This eliminates the markup fees charged by credit bureaus, and the market response was immediate. It fundamentally alters Fair Isaac’s business model by cutting out middlemen. The company can capture a larger share of the $4-5 billion credit scoring market while offering better prices to lenders. The move also puts the spotlight on [FICO](https://moneymorning.com/stocks/fico)’s pricing power. When your product is used by 90% of lenders and virtually every American with a credit history knows their [FICO](https://moneymorning.com/stocks/fico) score, you control the market. This direct licensing model could expand to auto loans, credit cards, and other lending verticals. The fundamentals were already strong before, but this move could supercharge the stock long-term.  ## **Should you buy FICO stock now?** [FICO](https://moneymorning.com/stocks/fico) stock may be ahead of the curve, as the forward PE ratio is at 52 times. This is justifiable since Fair Isaac is expected to continue growing fast in the coming years, with EPS growth of around 28-30% annually, along with ~15% revenue growth. Recent changes could inflate those growth figures even more. Unless you’re strictly a value investor, I’d buy the stock for the long term. Once these changes start translating over into a better income statement, the stock could surge all the way to its all-time high of ~$2,400 and beyond. [FICO](https://moneymorning.com/stocks/fico) stock has historically traded at a high earnings premium and will likely continue to do so for the foreseeable future. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Facebook This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) Share it: ### Popular Articles ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/03/01/why-acm-research-is-a-buy-despite-earnings/) March 1, 2026 ###### [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) February 27, 2026 ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) February 27, 2026 ###### [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) February 27, 2026 Notifications reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/)