Fair Isaac Corporation underperformed as investors shifted to defensive, large-cap stocks due to AI valuation concerns and geopolitical risks.
Fair Isaac Corporation (FICO) fell in Q1 2026 as the US equity market retreated in late February. Investors rotated toward stable, large-cap firms, favoring value equities over growth amid concerns over artificial intelligence valuations and Middle Eastern conflicts.
The Fidelity Growth Strategies Fund, which holds FICO, returned -3.21% for the quarter, outperforming the Russell Midcap Growth Index’s -6.35% decline. The fund’s outperformance was driven by stock selection, particularly in industrials, though growth stocks broadly lagged.
FICO, a provider of analytic and decision-making technologies, saw its one-month return decline as defensive strategies dominated. The fund continues to prioritize companies with strong competitive positions and growth potential.