Exploring Fair Isaac Corporation (FICO) Investor Profile: Who’s Buying and Why?

You're looking at Fair Isaac Corporation (FICO) and wondering why the stock continues to command a premium, especially with its market capitalization sitting near $39.11 billion as of November 2025. Honestly, the investor profile tells the story: institutional ownership is a staggering 85.75%, meaning the smart money is deeply entrenched. The recent Q4 fiscal year 2025 results, announced in early November, show exactly what they're buying into-a core Scores segment that saw revenue jump 25% year-over-year to $311.6 million, driving total quarterly revenue to $515.8 million. Plus, firms like BlackRock, Inc. aren't just holding; they were adding, with BlackRock increasing its position by 196,264 shares in Q2 2025, and the company itself repurchased a record-setting $550 million in shares in the fourth quarter. Are these investment giants simply banking on the defensible moat of the FICO Score, or are they seeing a faster-than-expected monetization of the FICO Platform's $263.6 million in annual recurring revenue? Let's break down who is buying and what their thesis truly is.

Who Invests in Fair Isaac Corporation (FICO) and Why?

You're looking at Fair Isaac Corporation (FICO) and trying to figure out who's buying this stock, which trades at a premium, and why they're willing to pay up. The direct takeaway is that FICO is overwhelmingly owned by large, long-term institutional money that values its monopoly-like position in the U.S. credit scoring market and its aggressive capital return strategy through buybacks, not dividends.

This is a company where the investment narrative is less about dividends and more about durable, high-margin revenue streams and a shrinking share count. It's a classic example of a high-quality, growth-at-a-reasonable-price (GARP) stock for professional investors, despite its high valuation multiples.

Key Investor Types: The Institutional Dominance

The ownership structure of Fair Isaac Corporation is a clear signal: this is an institutional darling. As of late 2025, institutional investors-the big mutual funds, pension funds, and asset managers-own roughly 85.75% of the company's outstanding stock.

This leaves the general public (retail investors) with a comparatively small stake, estimated to be around 10%, and company insiders holding a modest 2.57% to 3.46% of shares. The sheer weight of institutional ownership means their collective trading decisions have a massive impact on the stock price. One clean one-liner: Institutional investors call the shots here.

• Vanguard Group Inc.: Holds about 12.95% of shares, valued at approximately $5.35 billion.
• BlackRock, Inc.: A major passive holder, with a position valued at around $4.04 billion.
• Hedge Funds: Firms like Valley Forge Capital Management LP also hold significant stakes, indicating an active, concentrated investment thesis beyond passive indexing.

Investment Motivations: Growth, Moat, and Capital Return

Investors are attracted to Fair Isaac Corporation for a few core reasons that boil down to its economic moat (a sustainable competitive advantage) and its financial engineering. The company's Scores segment, which includes the ubiquitous FICO® Score, is the standard measure of consumer credit risk, used by 90% of top U.S. lenders.

The near-term motivation is anchored in strong financial performance and strategic moves. For the 2025 fiscal year, FICO reaffirmed guidance for 15% revenue growth and 20% EPS growth. Plus, the new direct-to-reseller licensing model, announced in October 2025, is a major catalyst. This change is expected to significantly boost profitability, with analysts projecting it could raise mortgage-related revenue per score from about $4.95 to a potential $10.

Here's the quick math: higher revenue per score, plus the recurring nature of the Scores revenue, translates directly to higher earnings per share (EPS). This is a growth story, defintely.

Investment Strategies: Long-Term Holding vs. Active Growth

The strategies employed by Fair Isaac Corporation's diverse investor base reflect the stock's profile as a high-growth, high-multiple technology company with a resilient core business.

Long-Term Holding (Passive): The massive stake held by passive index funds like Vanguard and BlackRock indicates a long-term, buy-and-hold strategy. These investors are essentially buying the market, and FICO's inclusion in major indexes means they are committed to its long-term trajectory, viewing it as a core holding in the software and data analytics sector. They are betting on the enduring nature of the FICO Score. If you want to dive deeper into the health of the business, you should be Breaking Down Fair Isaac Corporation (FICO) Financial Health: Key Insights for Investors.

Growth and Momentum Investing: This is the strategy for most active mutual funds and hedge funds. They focus on the company's ability to consistently deliver high revenue growth (Q3 2025 revenue was $536 million, up 20% year-over-year) and expanding margins (TTM gross profit margin was 81.7%). Their thesis is simple: the company's high free cash flow, which was approximately $553 million in a May 2025 report, justifies the premium valuation, as that cash can be reinvested or returned to shareholders.

Capital-Return Focused Strategy: Since Fair Isaac Corporation does not pay a regular dividend, its primary method of returning capital is through share repurchases. The board's approval of a new $1 billion stock repurchase program in June 2025 is a critical action for this group. This strategy reduces the number of shares outstanding, which mathematically increases EPS and is a key driver for stock price appreciation, especially for a company with a high valuation.

Institutional Ownership and Major Shareholders of Fair Isaac Corporation (FICO)

If you're looking at Fair Isaac Corporation (FICO), the first thing to understand is that institutional money drives this stock. The vast majority of FICO's shares-approximately 85.75%-are held by institutional investors and hedge funds, meaning their trading decisions are the primary force behind FICO's price movements.

This high concentration of ownership is typical for a specialized, high-growth technology and analytics company, but it also means the stock is defintely sensitive to large-scale buying or selling. As of the most recent filings, these institutions hold a total of over 24.6 million shares of the company.

The Giants on the Cap Table: Who Owns FICO?

The top shareholders are exactly who you'd expect: the largest asset managers in the world. These firms are primarily passive index funds or massive active managers who see FICO as a core holding due to its near-monopoly position in credit scoring and its growing software business.

The top institutional holders are dominated by the three largest index fund providers, which is a clear signal that FICO is firmly embedded in major market benchmarks. The top three alone account for a significant portion of the float. Here's the quick math on the largest positions, based on Q2 2025 filings and a stock price of around $1,760 per share in November 2025:

Vanguard, in particular, owns a substantial stake, raising its position by 1.2% in Q2 2025 alone, adding over 35,000 shares. That's a powerful vote of confidence from a firm that rarely makes speculative bets-they're buying because FICO is a foundational piece of the financial system. For more context on why FICO is so central, you should read their Mission Statement, Vision, & Core Values of Fair Isaac Corporation (FICO).

Recent Shifts and the Mixed Signal on Ownership

The recent trading activity among institutional investors presents a fascinating mixed signal. While the total institutional ownership remains high, the net flow of shares has been slightly negative in the near term.

In the most recent quarter, we saw 590 institutions decrease their positions by a total of 3,712,008 shares, while 411 institutions increased their holdings by 3,389,249 shares. This suggests a modest net selling pressure from the institutional base as a whole.

• Major Buyers: Artisan Partners Limited Partnership initiated a large new position valued at roughly $84.3 million in Q2 2025. Primecap Management Co. CA also bought a new stake worth about $34 million.
• Notable Sellers: On the other side, smaller, more active managers like EFG Asset Management Americas Corp. cut their stake by 21.0%, selling 276 shares.

What this tells me is that the smart money isn't unified. Some are taking profits after FICO's strong run, while others are establishing new, large positions, likely betting on the continued growth of the company's B2B software and analytics platform, which is less reliant on the core credit score business.

The Real Impact of Institutional Clout on FICO's Strategy

Institutional investors don't just move the stock price; they shape the company's direction. Since they own such a large percentage, FICO's board and management, led by CEO William J. Lansing, must align their long-term strategy with institutional preferences.

This alignment is why FICO continues to focus on high-margin, recurring revenue streams in its Scores and Software segments. When FICO recently reported beating quarterly estimates with $7.74 EPS and $515.8 million revenue-a strong 13.6% year-over-year increase-it was a direct validation for these large holders. Strong earnings keep the institutions happy.

Their influence keeps the pressure on management to execute flawlessly, especially given the analyst consensus of a 'Moderate Buy' rating and a price target around $2,118.50. If the institutions start seeing a dip in the Software segment's growth, they won't hesitate to sell, and the stock will drop fast. The board knows this. They are constantly managing for the long-term capital appreciation that these large, patient investors demand.

Key Investors and Their Impact on Fair Isaac Corporation (FICO)

If you're looking at Fair Isaac Corporation (FICO), you need to understand who actually owns the company, because institutional money drives this stock. The direct takeaway is that FICO is overwhelmingly an institutionally-owned stock, with these large funds holding roughly 85.75% of the outstanding shares, as reported in recent filings. This means their collective trading decisions, not individual retail investors, dictate the stock's major movements.

This high concentration of ownership is a double-edged sword. It provides stability from large, long-term holders like index funds, but it also makes the stock price extremely sensitive to any shift in sentiment from a handful of major players. If you see a cluster of big funds selling, the price will defintely move fast. The top 16 shareholders alone control about 51% of the company, which is a significant block of influence. Breaking Down Fair Isaac Corporation (FICO) Financial Health: Key Insights for Investors is a good place to start for the underlying financials.

The Big Three and Other Notable Holders

The largest shareholders are the giants of the asset management world-the passive index funds and major active managers. They hold FICO not just for its growth story in analytics, but because it's a critical component of major market indices. These are the funds you need to watch:

• The Vanguard Group, Inc.: The single largest shareholder, holding approximately 12% of the company.
• BlackRock, Inc.: A close second, often holding around 10% of the shares outstanding.
• State Street Corp: Another index fund behemoth, consistently ranking in the top five.
• Capital World Investors: A key active manager with a substantial stake.

These passive giants like Vanguard and BlackRock typically exert influence through proxy voting on governance issues, like executive compensation or board composition, rather than demanding a strategic overhaul. Their sheer size means their quarterly rebalancing can create significant buying or selling pressure, even if their investment thesis hasn't changed.

Recent Investor Moves and Shifting Stakes

The past year has seen some notable shifts in FICO's ownership landscape, reflecting both conviction in the company's core Scores segment and some profit-taking after a strong run. For instance, in the second quarter of the 2025 fiscal year, we saw a massive injection of new capital from active managers.

Here's the quick math on some new and increased positions from Q2 2025 filings:

• Artisan Partners Limited Partnership initiated a new position valued at approximately $84.295 million.
• Primecap Management Co. CA also bought a new stake, worth about $34 million.
• Ensign Peak Advisors Inc. boosted its position by 19.7%, adding over 3,000 shares.

This accumulation suggests a strong belief among sophisticated investors in the long-term value of FICO's proprietary credit scoring and its platform business. What this estimate hides, however, is the concurrent selling by other institutions, like BlackRock, Inc., which decreased its position by over 211,000 shares as of the Q3 2025 filing date (September 30, 2025). This is typical portfolio management, but it adds volatility.

Insider Activity and Corporate Buybacks

It's also important to track insider moves, as they can signal management's confidence-or lack thereof. In a notable move, CEO William J. Lansing sold 6,011 shares in a recent transaction, valued at approximately $9.24 million. While this is a common diversification move for executives, it's a data point to consider against the backdrop of strong financial performance.

The company itself is a major buyer of its own stock, which is a form of investor influence that directly supports the share price. In the third quarter of fiscal year 2025, FICO executed the largest share buyback in its history, totaling over $0.5 billion, repurchasing 284,000 shares at an average price of $1,802 per share. This aggressive capital return strategy is a clear signal to shareholders that management believes the stock is undervalued and is a powerful mechanism for boosting Earnings Per Share (EPS).

For the full fiscal year 2025, FICO has guided for total revenue of $1.98 billion and GAAP Net Income of $630 million, which underpins the confidence of these large institutional holders. The continued outperformance of the Scores segment, which saw a 34% revenue increase in Q3 2025, is the primary driver keeping the big money invested.

Your next step should be to monitor the next round of 13F filings to see if the conviction from Artisan and Primecap continues, or if the index funds like BlackRock continue to trim their positions.

Market Impact and Investor Sentiment

You're looking at Fair Isaac Corporation (FICO) because the stock has been a powerhouse, but you need to know if the big money is still buying. The short answer is yes, institutional investor sentiment is overwhelmingly positive, but with a few notable shifts that signal a more discerning approach to valuation now that the stock has run up. Institutional investors-the mutual funds, pension funds, and asset managers-hold a massive stake, sitting at approximately 85.75% of the company's stock as of the most recent filings.

This high concentration means the stock price is defintely sensitive to their trading actions. The long-term growth story is intact, but the near-term is seeing some profit-taking. For instance, in Q3 2025, The Vanguard Group, Inc. increased its position to hold 3,069,749 shares, representing a 12.78% ownership share, showing conviction. But, BlackRock, Inc., another top holder, reduced its stake by 8.363% in the same quarter, holding 2,322,563 shares. This is smart money rebalancing, not panic selling.

Here's the quick math on why the sentiment is still bullish overall: Fair Isaac Corporation delivered strong fiscal year (FY) 2025 results, with total revenue hitting $1.991 billion, a 16% year-over-year increase. That's a performance you can't ignore.

Recent Market Reactions and Ownership Shifts

The market's reaction to major investor moves has been a mix of conviction and caution. The stock was up 10.31% in the four weeks leading up to late November 2025, a clear sign of positive momentum driven by the strong Q4 2025 earnings report. The company reported Q4 revenue of $516 million and an Earnings Per Share (EPS) of $7.74, beating analyst estimates of $7.36.

A significant, direct market action driving the stock is the company's own capital return program. Fair Isaac Corporation's board approved a new $1 billion stock repurchase program in June 2025, and they've been executing on it aggressively. In Q4 2025 alone, the company repurchased 358,000 shares for $536 million, setting a new quarterly record for buybacks. This signals management's belief that the stock is undervalued, and the market generally likes that confidence.

• Q4 2025 EPS: $7.74, beating the consensus.
• Insider selling: CEO William J. Lansing sold 6,011 shares for about $9.24 million in November 2025.
• Institutional ownership: 85.75% of shares held by institutions.

Still, you need to watch insider selling. The recent sale by CEO William J. Lansing is a common practice for diversification, but it's a reminder that even top executives are taking some chips off the table after a strong run.

Analyst Perspectives on Key Investors and Future Impact

Wall Street analysts generally maintain a 'Moderate Buy' consensus rating, with an average 12-month price target of $2,118.50. What this estimate hides is the debate around two key factors: the adoption of FICO Score 10T and the new direct licensing model for mortgages. The buy-side is focused on how quickly these innovations translate into higher scores revenue.

The Scores segment is the core driver, with Q4 2025 revenues hitting $311.55 million, a 25% year-over-year increase. This growth is tied directly to the value proposition that institutional investors are buying into: Fair Isaac Corporation's dominance in the credit scoring ecosystem. Analysts are optimistic because of strategic moves like the new FICO mortgage direct license program, which gives lenders pricing optionality and promotes competition.

The key investors-the large institutions-are essentially betting on the successful transition to the FICO Platform and the adoption of new models like FICO 10T, which offers superior predictive performance. The company is also innovating with generative AI, launching the FICO Focused Foundation Model (FFM) for financial services, which management claims can provide a 35% lift in fraud models. That's a powerful narrative for a technology company.

Here is a snapshot of the major institutional holders and their recent Q3 2025 activity:

The massive increase by Capital World Investors, for example, is a strong indicator of a major fund initiating a significant position, which often precedes further analyst upgrades. If you want to dive deeper into the strategic vision that underpins these investment decisions, you should review the company's core values: Mission Statement, Vision, & Core Values of Fair Isaac Corporation (FICO).

Finance: Track the Q4 2025 13F filings for further institutional accumulation or distribution by the end of the year.