On July 31, Fair Isaac declined 5.01% in regular trading, trading at $1,083.1/share, with turnover of $98.44 million. The sell-off continued from the prior session as markets digested the company's fiscal Q3 earnings report.

Fair Isaac reported adjusted EPS of $12.18, up 42.12% year-over-year and beating the consensus estimate of $11.73. However, revenue of $674 million came in below the Street's expectation of $679 million. More critically, the company raised its full-year revenue guidance to $2.53 billion, still short of the $2.56 billion consensus, while full-year adjusted EPS guidance of $42.43 also trailed the expected $43.18.

Having delivered consecutive quarters of significant beats, market expectations had been elevated to extreme levels. The stock had rallied over 5% ahead of earnings, amplifying downside risk. The modest revenue miss combined with below-consensus guidance triggered a sharp reversal in sentiment, with selling pressure extending into a second consecutive session. BMO Capital lowered its price target to $1,550 from $1,700 while maintaining an Outperform rating.

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