Fair Isaac Corporation (FICO) Fell on AI Disruption Concerns

2 hours ago 3

Soumya Eswaran

Tue, May 12, 2026 astatine 7:42 AM CDT 3 min read

Jensen Investment Management, an plus absorption institution based successful the US, released its first-quarter 2025 capitalist missive for the “Jensen Quality Mid Cap Fund”. A transcript of the missive is disposable to download here. The Jensen Quality Mid Cap Fund aims for semipermanent growth. The Fund returned -2.53% successful Q1 2026, lagging the 0.60% instrumentality for the MSCI US Mid Cap 450 Index. Mid-cap stocks were level successful the 4th owed to inflation, war, precocious vigor prices, and cautious user spending. Rapid AI concern maturation impacted the Index, boosting immoderate stocks but hurting others, particularly bundle and concern services stocks facing AI disruption concerns. Energy stocks surged aft the Iran War, challenging performance. The fund's process focuses connected high-quality companies with a 15%+ ROE for 10 years, indicating sustained advantages. Quarterly show benefited from underweights successful the Financials and Communications Services and higher vulnerability to the Industrials sector, portion underweight vulnerability successful the Energy and Utilities sectors and overweight successful Consumer Discretionary wounded performance. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, Jensen Quality Mid Cap Fund highlighted stocks similar Fair Isaac Corporation (NYSE:FICO). Fair Isaac Corporation (NYSE:FICO) is simply a exertion institution that develops analytic, software, and integer decision-making technologies and services. The one-month instrumentality of Fair Isaac Corporation (NYSE:FICO) was 8.41%, and its shares mislaid 48.88% of their worth implicit the past 52 weeks. On May 11, 2026, Fair Isaac Corporation (NYSE:FICO) banal closed astatine $1,092.00 per share, with a marketplace capitalization of $25.32 billion.

Jensen Quality Mid Cap Fund stated the pursuing regarding Fair Isaac Corporation (NYSE:FICO) successful its Q1 2026 capitalist letter:

"Other notable detractors from quarterly show included Fair Isaac Corporation (NYSE:FICO) and Equifax, Inc. (EFX). Fair Isaac Corporation is the proprietor and licensor of the ubiquitous FICO recognition people utilized successful lending decisions, and Equifax is simply a supplier of credit, income, and employment information to lenders, societal services agencies, and hiring personnel. We judge some stocks underperformed chiefly owed to capitalist concerns astir imaginable AI disruption. FICO’s banal was besides apt impacted by the Federal Housing Finance Agency’s caller determination to let VantageScore, a competing recognition score, to beryllium utilized successful underwriting mortgages sold to Fannie Mae and Freddie Mac. We judge capitalist concerns related to scoring models are owed to the technological costs associated with transitioning to a caller model, arsenic good arsenic the comfortableness they person developed with the FICO score’s quality to foretell defaults implicit decades and crossed assorted recognition cycles."

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