Washington, D. C. 20549


                                    FORM 8-K

                 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

       DATE OF REPORT (date of earliest event reported): DECEMBER 16, 1997

                             Commission File Number

             (Exact name of registrant as specified in its charter)

           DELAWARE                                              94-1499887
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

              120 North Redwood Drive, San Rafael, California 94903
               (Address of principal executive offices)     (Zip Code)

       Registrant's telephone number, including area code: (415) 472-2211

ITEM 5. Other Events

     On December 16, 1997,  the  Registrant  issued the press  release  attached
hereto as Exhibit 99.1 and incorporated herein by reference.

ITEM 7. Financial Statements and Exhibits

             (c)  Exhibits

                  99.1  Press Release of the Registrant dated December 16, 1997.


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                           FAIR, ISAAC AND COMPANY, INCORPORATED

DATE:   December 16, 1997

                                            By:    /s/ PETER L. MCCORKELL
                                                       Peter L. McCorkell
                                                Senior Vice President, Secretary
                                                      and General Counsel


                                  Exhibit Index

                    To Fair, Isaac and Company, Incorporated
                   Report on Form 8-K dated December 16, 1997

Exhibit No.       Exhibit                                          Numbered Page
- -----------       -------                                          -------------
99.1              Press Release dated December 16, 1997.                 4




Fair, Isaac and Company, Inc.
120 North Redwood Drive
San Rafael, CA 94903-1996
415 472 2211 phone
415 492 9381 fax

                                                              [Fair, Isaac Logo]

NEWS FROM FAIR, ISAAC                                           NYSE SYMBOL: FIC
FOR IMMEDIATE RELEASE                                Contact: Peter L. McCorkell
                                                                  (415) 472-2211

              Fair, Isaac Expects Higher Revenue But Flat Earnings

December 16, 1997

San Rafael,  Calif.--Fair,  Isaac and Company,  Inc. (NYSE: FIC) today announced
that, while it expects healthy revenue growth in the quarter ending December 31,
1997, compared with the same period a year ago, the company anticipates that its
operating margin will be lower than in the December 1996 quarter.  President and
CEO Larry E. Rosenberger said he believes the percentage  growth in revenues for
the quarter,  over the same period a year ago, will be in the "mid-twenties" but
that the company's  operating expenses are growing even faster. As a result, the
company  expects  that  operating  income and earnings per share for the current
quarter will be approximately even with the same quarter a year ago.

Rosenberger  noted,  "A number of factors are putting  pressure on our operating
margin  right now.  Our  internal  forecast  had called for even higher  revenue
growth  early in the  1998  fiscal  year,  so we  authorized  hiring  and  other
expenditures  accordingly.  However,  the  continuing  wave of bank  mergers has
resulted in the  cancellation of some orders and has delayed other projects.  In
addition,  the internal systems staffs of many of our clients are preoccupied by
`Year  2000'  issues and are thus unable to provide  the  assistance  we need to
complete--and  sometimes to start--our work.  Finally,  we remain constrained by
staffing shortages in certain areas.

"On the expense side, some units are still finding it necessary to use expensive
contract  labor to meet  current  demand  from our  clients  while  keeping  the
development  of new  products on schedule.  While we have made some  progress in
recent months in recruiting  additional  permanent  staff, it takes some time to
get newly hired employees to the point where they are fully productive.  We have
also chosen to expend  resources in pursuing new product and market  development
opportunities  which we believe have great future  potential--but  which are not
yet producing revenue."

                                   -- more --

Mr.  Rosenberger  concluded  by  saying,  "Fundamentally,  the  demand for Fair,
Isaac's  products and services  remains  strong.  The current  margin squeeze is
mostly a case of 'growing pains', and we believe it will be temporary.  Where we
can cut costs without sacrificing  long-term growth and profitability we will do
so, but we are  determined  to manage the  company for the long haul rather than
just quarter-to-quarter results."

Since 1956,  Fair,  Isaac has helped  businesses  maximize the value of data for
strategic decision making.  The company pioneered the commercial  development of
empirically  derived  predictive  models for the credit industry and popularized
their use in lending decisions.  Today, Fair, Isaac and its subsidiaries provide
data-driven  decision control  solutions to a variety of industries,  worldwide,
including  financial  services,  direct  marketing,  personal  lines  insurance,
retail,  health care,  and  telecommunications.  Primary  areas of focus include
customer and  operational  data management and modeling,  information  analysis,
strategy design, and software.  Headquartered in San Rafael,  California,  Fair,
Isaac employs over 1,200 people and has offices throughout the United States and
Europe as well as in Canada,  Mexico,  South Africa,  and Japan.  For the fiscal
year ended September 30, 1997, the Company  reported net income of $20.7 million
($1.46 per share) on revenues of $199.0 million.

This press release contains certain forward-looking  statements regarding events
and trends that may affect the Company's  future  results.  Such  statements are
subject to risks and uncertainties that could cause the Company's actual results
to  differ  materially.  Such  factors  include,  but are not  limited  to,  the
Company's   ability  to  recruit  and  maintain  key  technical  and  managerial
personnel,  the  maintenance  of its  existing  relationships  with key alliance
partners,  its  ability to continue to develop  new and  enhanced  products  and
services,  competition,  market  demand  and  other  factors  described  in  the
Company's annual and quarterly  reports to stockholders and its annual report on
Form 10-K and other reports filed with the Securities and Exchange Commission.