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Equifax Inc.
S&P 500
$23.7B
Market Cap
40.8
P/E
1.39
PEG
8.4%
ROCE
13.8%
ROE
1.07
D/E
18.0%
OPM
-26.7%
% from 52W High
33
α RS
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About

Equifax Inc. operates as a data, analytics, and technology company.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.700B
+11% YoY
Adjusted EBITDA
$552M
+10.5% YoY
Adjusted EPS
$2.25
+13% YoY
Net Income
$183.9M
-4% YoY
What Went Right
  • Revenue and adjusted EPS beat guidance: revenue was $1.700B, $5M above the April midpoint, and EPS was $0.05 above.
  • Ex-FICO EBITDA margin expanded 120 bps YoY to roughly 35%, helped by AI-driven productivity and operating leverage.
  • EWS Government signed ~$300M of annual contract value in the last four months, including $100M of new business principally benefiting 2027.
What to Watch
  • US mortgage market weakened as 30-year rates rose to ~6.6%; full-year mortgage originations are expected down low single digits, partly offset by share gains.
  • EWS Government revenue declined ~4% in Q2 due to a tough prior-year comp and some contract revenue slipping past quarter-end; growth is expected to return in H2.
  • Weakening FX offset the Q2 revenue beat in full-year reported guidance, and international growth was softer than expected due to Canada and UK market headwinds.
Management Guidance
  • Q3 2026 revenue guided at $1.68-$1.71B, up ~10% YoY at the midpoint; constant-currency growth ~9.5%; ex-FICO growth ~7%.
  • Q3 2026 adjusted EPS guided at $2.15-$2.25, up ~8% at the midpoint; EBITDA guided at $547M-$564M, up ~10%, with reported EBITDA margin ~32.8%.
  • Full-year 2026 reported guidance is unchanged from April, while constant-currency guidance was raised; ex-FICO revenue growth expected at 7.2%-8.4%, ex-FICO EBITDA margin expansion ~75 bps, and free cash flow above $1B.
Investor Lens
The thesis is stronger after this call: diversified markets outperformed, ex-FICO EBITDA margins expanded 120 bps, government bookings of ~$300M ACV set up 2027, and the AI cost-savings target was doubled to $150M. The Círculo de Crédito acquisition adds a high-growth Mexican credit bureau at an attractive 9.4x EBITDA multiple and fits within the existing capital allocation framework. Mortgage softness and FX headwinds are the main offsets, but management held full-year reported guidance and raised constant-currency guidance. Overall, the earnings quality and forward setup reinforce confidence in Equifax's margin expansion and multi-year growth algorithm.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG STRONG Q2: Revenue +11%, EBITDA +10.5%, EPS +13%
Revenue
Revenue came in at $1.700B, up 11% reported and 10% constant currency, $5M above the April midpoint. Ex-FICO mortgage royalty revenue was up ~7%; Workforce Solutions grew 7%, USIS grew 17%, and International grew 4% in local currency.
Profitability
GAAP net income attributable to Equifax was $183.9M, down 4% YoY reflecting a $40M legal settlement charge. Adjusted EPS was $2.25, up 13% and $0.05 above guidance; adjusted EBITDA was $552M, up 10.5% YoY.
Margins
Reported adjusted EBITDA margin was 32.5%, flat YoY; ex-FICO EBITDA margin was ~35%, up 120 bps YoY. USIS ex-FICO EBITDA margin expanded 140 bps to 40.5%, Workforce Solutions held at 52.1%, and International EBITDA margin was 27.6%, up 120 bps.
Balance Sheet
Equifax returned $366M to shareholders in Q2: $300M of share repurchases and $66M of dividends, with $1.6B returned over the last 12 months, roughly 100% of operating cash flow. Management reaffirmed over $1B of 2026 free cash flow and over $1.5B of capital available while keeping leverage below 3x EBITDA.
Key Risks
Management flagged a weaker US mortgage market from higher rates, EWS Government revenue down ~4% on a tough comp with some closings slipping, and lower-than-expected International growth in Canada and the UK. The Q2 beat was partly offset by weaker FX in the full-year reported guidance.
Outlook
Q3 revenue is guided at $1.68-$1.71B with adjusted EPS of $2.15-$2.25, and full-year reported guidance is unchanged while constant-currency guidance was raised. Management expects FY2026 ex-FICO revenue growth of 7.2%-8.4%, ex-FICO EBITDA margin expansion of ~75 bps, and over $1B of free cash flow.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-21
Q2 2026 saw double-digit revenue and EPS growth, margin expansion from AI-driven productivity, and strong government contract wins. The Círculo de Crédito acquisition and robust new product launches position the company for continued growth, with guidance reaffirmed for 2026.
Q1 2026 Q1 2026 2026-04-21
Q1 2026 delivered 14% revenue growth and strong margin expansion, led by mortgage and innovation in AI-driven products. Guidance for 2026 remains unchanged due to macro uncertainty, but robust cash flow and capital returns are expected.
Q4 2025 Q4 2025 2026-02-04
2025 results exceeded guidance with 7% revenue growth, strong Q4 momentum, and robust free cash flow. 2026 guidance projects 10% reported revenue growth (7% ex-FICO), double-digit EPS growth, and continued high margins, driven by AI innovation and government vertical expansion.
Q3 2025 Q3 2025 2025-10-21
Q3 revenue grew 7% year-over-year, driven by strong USIS mortgage and EWS government growth, with adjusted EPS and free cash flow exceeding guidance. Full-year outlook was raised, and new VantageScore pricing is expected to drive future profit and market share gains.
Q2 2025 Q2 2025 2025-07-22
Record Q2 revenue and strong EPS beat were driven by robust growth in EWS and USIS, despite ongoing mortgage and hiring market headwinds. Guidance for 2025 was raised for FX, but macro uncertainty and elevated litigation costs led to a balanced outlook for the second half.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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