Equifax’s EFX third-quarter 2026 earnings and revenues beat the Zacks Consensus Estimate.
EFX’s adjusted earnings were $2.26 per share, up 10.8% year over year. The figure topped the Zacks Consensus Estimate of $2.19 by 3.2%. Revenues increased 9.6% year over year to $1.69 billion, beating the consensus estimate by a slight margin.
Growth in U.S. Information Solutions (“USIS”), verification services and international operations supported the results despite mortgage market weakness. Diversified Markets revenues advanced 8%, while the new-product Vitality Index exceeded 17%.
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
EFX's Workforce Solutions Revenues Rise 7%
Workforce Solutions revenues increased 7% year over year to $693.9 million. Verification Services revenues advanced 9% to $603.2 million, supported by diversified market demand. Employer Services revenues declined 5% to $90.7 million.
Diversified Markets revenues grew 9%, led by a 13% increase in Verification Services. Talent Solutions revenues climbed more than 20%, while Consumer Lending recorded high-double-digit growth. Government revenues advanced in the mid-single digits. However, Workforce Solutions mortgage revenues remained flat amid weaker market conditions.
The segment's operating margin expanded to 44.1% from 43.8% a year earlier. Adjusted EBITDA margin improved to 51.4% from 51.2%, reflecting modest profitability gains.
Equifax's USIS Growth Benefits From Mortgage Strength
USIS revenues increased 13% year over year to $599.1 million. Online Information Solutions revenues rose 13% to $529.7 million, while Financial Marketing Services revenues climbed 11% to $69.4 million.
USIS mortgage revenues jumped 28% despite challenging market conditions. Diversified Markets revenues advanced 6%, supported by Financial Institutions and Auto. Total U.S. mortgage revenues increased 15%, highlighting growth despite a weaker market environment.
The segment's operating margin improved to 24.3% from 23.2% in the year-ago quarter. Adjusted EBITDA margin increased to 35.4% from 35.2%, indicating improved operating profitability alongside revenue expansion.
EFX's International Business Records Broad-Based Growth
International revenues rose 9% on a reported basis and 7% in local currency to $399.5 million. Asia Pacific delivered the strongest reported growth, with revenues increasing 20% to $107.7 million. Local-currency growth was 12%, supported by double-digit growth in Australia.
Latin America revenues increased 12% on a reported basis and 8% in local currency to $114.1 million. Europe revenues advanced 3% to $105.5 million, with local-currency growth of 4%. Canada revenues grew 2% to $72.2 million, representing 4% growth in local currency.
The segment's operating margin remained unchanged at 15.8%. However, adjusted EBITDA margin contracted to 30.9% from 31.3%, indicating that revenue growth did not translate into higher adjusted profitability margins.
Equifax's Profitability Improves as Expenses Rise
Adjusted EBITDA increased 11% year over year to $560.2 million. Adjusted EBITDA margin expanded to 33.1% from 32.7%, reflecting improved consolidated profitability.
Operating income climbed to $355.3 million from $264.3 million. Total operating expenses jumped to $1.34 billion from $1.28 billion. The cost of services rose to $752.4 million from $663.2 million, while selling, general and administrative expenses declined to $390.4 million from $434.1 million.
Net income attributable to Equifax increased 32% to $211.7 million. GAAP earnings improved to $1.79 per share from $1.29, benefiting from higher profitability and a lower share count.
EFX Advances AI Strategy & Shareholder Returns
Equifax continued deploying EFX.AI across product development and internal operations to support innovation and productivity improvements. Management reiterated its $150-million AI productivity goal, emphasizing operating efficiencies and cost optimization.
The company returned $158 million to shareholders during the quarter, comprising $92 million in repurchases of 0.5 million shares and $66 million in dividends. Cash and cash equivalents totaled $192.9 million at September-end compared with $180.8 million at 2025-end.
Cash provided by operating activities totaled $1.14 billion during the first nine months of 2026, while capital expenditures amounted to $378.9 million. Equifax also expects its acquisition of Mexico-based Círculo de Crédito to close in the fourth quarter.
Equifax Cuts 2026 Revenue Outlook on Mortgage Weakness
For the fourth quarter of 2026, management expects revenues between $1.605 billion and $1.635 billion, indicating growth of 3.5-5.4%. The Zacks Consensus Estimate is pinned at $1.69 billion.
Adjusted earnings are projected between $2.07 and $2.17 per share. The Zacks Consensus Estimate is pinned at $2.19 billion.
Equifax lowered its full-year revenue guidance midpoint to $6.661 billion, with revenues now projected between $6.646 billion and $6.676 billion. The Zacks Consensus Estimate is pinned at $6.73 billion. The revised outlook implies growth of 9.4-9.9%, reflecting weaker U.S. mortgage demand.
Adjusted earnings are expected to be $8.45 to $8.55 per share, with the midpoint down 4 cents to $8.50. The Zacks Consensus Estimate meets the midpoint of the guided range.
Management maintained its high-single-digit Diversified Markets revenue growth outlook and expects AI-driven efficiencies and expense management to help offset mortgage-related pressures.
EFX carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
ABM ABM reported better-than-expected third-quarter fiscal 2026 results.
ABM posted adjusted earnings of $1.04 per share, which increased 27% year over year and surpassed the Zacks Consensus Estimate of $1.01 by 3%.
Revenues rose 4.2% to $2.32 billion and beat the consensus mark of $2.30 billion by 0.7%.
Fiserv FISV posted second-quarter 2026 adjusted earnings of $1.84 per share, missing the Zacks Consensus Estimate of $1.89 by 2.6%. Adjusted earnings declined 26% from the year-ago quarter as profitability contracted sharply.
GAAP revenues of $5.29 billion topped the consensus mark of $5.05 billion by 4.8% but decreased 4% year over year.
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This article originally published on Zacks Investment Research (zacks.com).