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Equifax Beats Q3 Profit Estimates But Cuts Full-Year Revenue Guidance Below Expectations
Read this in the Market Flux appEquifax Inc. $EFX
$176.45+11.35%as of publication
- 5D Change
- +18.36%
- Market Cap
- $18.63B
Equifax reported third-quarter 2026 results on October 20 that topped earnings and margin estimates but fell short on forward guidance, sending the stock lower in morning trading before recovering to outperform peers by the close. Revenue came in at $1.69 billion, up 10% year over year and in line with analyst expectations. Adjusted EPS of $2.26 beat the $2.20 consensus by 6 cents and rose 11% from the prior year. Adjusted EBITDA reached $560.2 million, up 11% and ahead of the $555 million estimate, with the adjusted EBITDA margin expanding to 33.1% versus the 32.8% forecast.
The guidance cut was the dominant concern for investors. Equifax lowered its full-year 2026 revenue outlook to $6.65 billion to $6.68 billion, below the $6.73 billion analyst consensus. Fourth-quarter revenue guidance of $1.61 billion to $1.64 billion also trailed the $1.69 billion estimate, and Q4 adjusted EPS guidance of $2.07 to $2.17 came in under the $2.19 consensus. Full-year adjusted EPS guidance of $8.45 to $8.55 was roughly in line with the $8.50 estimate.
Across segments, U.S. Information Solutions was the strongest performer with 13% revenue growth to $599.1 million, driven by Online Information Solutions at $529.7 million, also up 13%, and Financial Marketing Services up 11% to $69.4 million. Workforce Solutions grew 7% to $693.9 million, with Verification Services rising 9% to $603.2 million, though Employer Services declined 5% to $90.7 million. International revenue increased 9% to $399.5 million. U.S. mortgage revenue grew 15% year over year. Within Workforce Solutions, Talent Solutions posted over 20% growth and Consumer Lending delivered high double-digit gains.
Segment adjusted EBITDA margins were 51.4% for Workforce Solutions, 35.4% for U.S. Information Solutions, and 30.9% for International. GAAP net income rose 32% to $211.7 million and GAAP EPS of $1.79 climbed 39% year over year. The company repurchased 0.5 million shares for $92 million during the quarter. Equifax also said it expects to close its acquisition of Círculo de Crédito, a Mexican credit bureau, in the fourth quarter.
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Sources
- NasdaqEquifax Q3 26 Earnings Conference Call At 8:30 AM ET
- WallstengineEQUIFAX $EFX Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $1.69B (Est. $1.69B) 🟡; +10% YoY 🔹 Adj. EPS: $2.26 (Est. $2.20) 🟢; +11% YoY 🔹 Adj. EBITDA: $560.2M (Est. $555M) 🟢; +11% YoY 🔹 Adj. EBITDA Margin: 33.1% (Est. 32.8%) 🟢 Cuts FY26 Guide: 🔹 Revenue: $6.65B-$6.68B (Est. $6.73B) 🔴 🔹 Adj. EPS: $8.45-$8.55 (Est. $8.50) 🟡 Q4 Guide: 🔹 Revenue: $1.61B-$1.64B (Est. $1.69B) 🔴 🔹 Adj. EPS: $2.07-$2.17 (Est. $2.19) 🔴 Segment Revenue: 🔹 Workforce Solutions: $693.9M; +7% YoY 🔹 Verification Services: $603.2M; +9% YoY 🔹 Employer Services: $90.7M; -5% YoY 🔹 U.S. Information Solutions: $599.1M; +13% YoY 🔹 Online Information Solutions: $529.7M; +13% YoY 🔹 Financial Marketing Services: $69.4M; +11% YoY 🔹 International: $399.5M; +9% YoY Segment Adj. EBITDA Margin: 🔹 Workforce Solutions: 51.4% 🔹 USIS: 35.4% 🔹 International: 30.9% Announcements: 🔹 Círculo de Crédito acquisition expected to close in Q4 Other Q3 Metrics: 🔹 GAAP EPS: $1.79; +39% YoY 🔹 GAAP Net Income: $211.7M; +32% YoY 🔹 Local Currency Revenue: +9% YoY 🔹 U.S. Mortgage Revenue: +15% YoY 🔹 Vitality Index: 17%+ 🔹 Adj. Net Income: $267.4M (Est. $259M) 🟢 Key Updates: 🔹 Acquisition-related costs: $8.9M 🔹 Share repurchases: 0.5M shares for $92M Comments: 🔸 “Workforce Solutions delivered 7% revenue growth, with Diversified Markets growth of 9% led by strong over 20% growth in Talent Solutions, strong high double-digit growth in Consumer Lending and accelerating sequential mid single-digit growth in Government.”
- MarketsdayEquifax $EFX Q3’26 Earnings Highlights – October 20, 2026 🔹 Revenue reached $1.69 billion, in line with estimates and up 10% YoY. 🔹 Adjusted EPS came in at $2.26, beating estimates of $2.20 and rising 11% YoY. 🔹 Adjusted EBITDA increased 11% YoY to $560.2 million, exceeding estimates of $555 million. Adjusted EBITDA margin reached 33.1%, above the 32.8% estimate. 🔹 Equifax lowered its FY26 revenue guidance to $6.65–$6.68 billion, below analyst expectations of $6.73 billion. 🔹 FY26 adjusted EPS guidance is $8.45–$8.55, compared with estimates of $8.50. 🔹 Q4 revenue guidance of $1.61–$1.64 billion fell short of estimates of $1.69 billion. Adjusted EPS guidance of $2.07–$2.17 also came in below expectations of $2.19. 🔹 Workforce Solutions revenue rose 7% YoY to $693.9 million, while Verification Services generated $603.2 million, up 9%. 🔹 Employer Services revenue declined 5% YoY to $90.7 million. 🔹 U.S. Information Solutions revenue increased 13% YoY to $599.1 million. Online Information Solutions also grew 13% to $529.7 million, while Financial Marketing Services rose 11% to $69.4 million. 🔹 International revenue grew 9% YoY to $399.5 million. 🔹 Adjusted EBITDA margins were 51.4% for Workforce Solutions, 35.4% for U.S. Information Solutions, and 30.9% for International. 🔹 Equifax expects its acquisition of Círculo de Crédito to close in Q4, potentially strengthening its presence in Mexico’s credit information market. 🔹 Overall, Equifax delivered an earnings beat with improving margins, but weaker-than-expected Q4 and full-year revenue guidance remains a key concern. \#Equifax #EFX #EarningsSeason #Q3Earnings #CreditData #FinancialServices #EarningsOutlook #USStocks
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- InvestingEquifax Inc (EFX) (Q3 2026) Earnings Call Highlights: Diversified Growth and Margin Expansion ...