third quarter of 2026
Filed Oct 20, 2026Equifax Delivers Strong 10% Revenue Growth in Third Quarter 2026 Driven by 8% Diversified Markets Revenue Growth Despite Challenging U.S. Mortgage Market; Returns $158 Million Cash to Shareholders
Third-quarter revenue increased 10%, net income attributable to Equifax increased 32%, and adjusted EPS increased 11%, led by broad segment growth and higher margins. The company reduced full-year revenue guidance at the midpoint because it expects the weaker U.S. mortgage market to persist through the remainder of 2026, while maintaining adjusted EPS guidance within its previous range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenue, three months ended September 30, 2026GAAP | $1.69B | – | 10% |
| Local currency operating revenue growth, three months ended September 30, 2026non-GAAP | 9% | – | 9% |
| Organic local currency operating revenue growth, three months ended September 30, 2026non-GAAP | 9% | – | 9% |
| Cost of services, three months ended September 30, 2026GAAP | $752.4M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $390.4M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $194.4M | – | 6% |
| Total operating expenses, three months ended September 30, 2026GAAP | $1.34B | – | – |
| Operating income, three months ended September 30, 2026GAAP | $355.3M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$62.3M | – | – |
| Consolidated net income, three months ended September 30, 2026GAAP | $213.4M | – | – |
| Net income attributable to Equifax, three months ended September 30, 2026GAAP | $211.7M | – | 32% |
| Diluted EPS attributable to Equifax, three months ended September 30, 2026GAAP | $1.79 per share | – | 39% |
| Basic EPS attributable to Equifax, three months ended September 30, 2026GAAP | $1.80 | – | – |
| Adjusted net income attributable to Equifax, three months ended September 30, 2026non-GAAP | $267.4M | – | 6% |
| Adjusted diluted EPS attributable to Equifax, three months ended September 30, 2026non-GAAP | $2.26 | – | 11% |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $560.2M | – | 11% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 33.1% | – | – |
| Cash provided by operating activities, nine months ended September 30, 2026GAAP | $1.14B | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | −$378.9M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $192.9M | – | – |
| Short-term debt and current maturities of long-term debt, September 30, 2026GAAP | $157.7M | – | – |
| Long-term debt, September 30, 2026GAAP | $5.05B | – | – |
| Dividends per common share, three months ended September 30, 2026GAAP | $0.56 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Workforce SolutionsDiversified Markets growth of 9% was 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. | $693.9M | – | 7% |
| Verification ServicesDiversified Markets revenue growth. | $603.2M | – | 9% |
| Employer ServicesNo driver quantified in the release. | $90.7M | – | (5)% |
| U.S. Information SolutionsDiversified Markets revenue growth of 6% was led by Financial Institutions and Auto; U.S. Mortgage revenue was up 28%. | $599.1M | – | 13% |
| Online Information SolutionsNo driver quantified in the release. | $529.7M | – | 13% |
| Financial Marketing ServicesNo driver quantified in the release. | $69.4M | – | 11% |
| InternationalLow double-digit revenue growth in Australia and high single-digit growth in Latin America. | $399.5M | – | 9% reported; 7% local currency |
| Latin AmericaHigh single-digit growth in Latin America. | $114.1M | – | 12% reported; 8% local currency |
| EuropeNo driver quantified in the release. | $105.5M | – | 3% reported; 4% local currency |
| Asia PacificLow double-digit revenue growth in Australia. | $107.7M | – | 20% reported; 12% local currency |
| CanadaNo driver quantified in the release. | $72.2M | – | 2% reported; 4% local currency |
Q4 2026 and FY 2026 outlook
- RevenueQ4 2026: $1.605 billion to $1.635 billion; FY 2026: $6.646 billion to $6.676 billion
- NoteReported Revenue Growth: Q4 2026 3.5% to 5.4%; FY 2026 9.4% to 9.9%
- NoteLocal Currency Growth: Q4 2026 3.1% to 5.0%; FY 2026 8.5% to 9.0%
- NoteOrganic Local Currency Growth: Q4 2026 3.0% to 4.9%; FY 2026 8.4% to 8.9%
- NoteAdjusted Earnings Per Share: Q4 2026 $2.07 per share to $2.17 per share; FY 2026 $8.45 per share to $8.55 per share
- NoteDiversified Markets revenue guidance for revenue growth of high single-digit percent.
Capital returns
- Returned $158 million in cash to shareholders through share repurchases and quarterly dividend.
- Repurchased 0.5 million shares for $92 million in the third quarter of 2026.
- Paid $66 million in quarterly dividends in the third quarter of 2026.
- Treasury stock purchases were $(652.0) million for the nine months ended September 30, 2026, compared to $(427.4) million for the nine months ended September 30, 2025.
- Dividends paid to Equifax shareholders were $(199.4) million for the nine months ended September 30, 2026, compared to $(172.0) million for the nine months ended September 30, 2025.
What drove it
- Diversified Markets revenue increased 8% on a reported basis and 7.5% on a local currency basis.
- U.S. Mortgage revenue increased 15% despite the weaker mortgage market.
- New Product Innovation delivered a record over 17% new product Vitality Index, above the company's 10% long-term goal.
- Management cited EFX Cloud, EFX.AI and proprietary data as supporting new product innovation.
- The company expects the Círculo de Crédito acquisition to close in the fourth quarter.
- The company cited AI-driven operating cost efficiencies and optimizations as supporting operating-margin performance.
Concerns
- Management expects the much weaker U.S. mortgage market seen in the latter half of the third quarter to continue through the remainder of 2026.
- Workforce Solutions Mortgage revenue was about flat from the weak mortgage market.
- Employer Services revenue declined 5%.
- International adjusted EBITDA margin was 30.9%, compared to 31.3% in the third quarter of 2025.
- Full-year 2026 revenue guidance was reduced at the midpoint to $6.661 billion, reflecting reduced U.S. Mortgage related revenue.
What to watch
- U.S. mortgage-market conditions through the remainder of 2026 and their effect on U.S. Mortgage related revenue.
- Whether Diversified Markets can deliver its maintained guidance for high single-digit percent revenue growth.
- Q4 reported revenue guidance of $1.605 billion to $1.635 billion and adjusted EPS guidance of $2.07 per share to $2.17 per share.
- Completion of the Círculo de Crédito acquisition, which management expects in the fourth quarter.
- Progress toward the $150 million AI productivity goal and management's expected gross-margin recovery from lower Mortgage revenue.
Balance sheet and cash flow
- Cash and cash equivalents were $192.9 million at September 30, 2026, compared to $180.8 million at December 31, 2025.
- Short-term debt and current maturities of long-term debt were $157.7 million at September 30, 2026, compared to $1,038.0 million at December 31, 2025.
- Long-term debt was $5,049.0 million at September 30, 2026, compared to $4,055.3 million at December 31, 2025.
- Cash provided by operating activities was $1,142.1 million for the nine months ended September 30, 2026, compared to $1,144.9 million for the nine months ended September 30, 2025.
- Capital expenditures were $(378.9) million for the nine months ended September 30, 2026, compared to $(351.4) million for the nine months ended September 30, 2025.
- Proceeds from issuance of long-term debt were $998.1 million for the nine months ended September 30, 2026; payments on long-term debt were $(276.4) million.
Analysis
Equifax reported third-quarter operating revenue of $1,692.5 million, up 10%, with 9% local currency and 9% organic local currency growth. Net income attributable to Equifax increased 32% to $211.7 million, while diluted EPS increased 39% to $1.79 per share. Adjusted net income rose 6% to $267.4 million and adjusted diluted EPS increased 11% to $2.26. The difference between GAAP and adjusted earnings growth reflects, among other items, $43.9 million of prior-year realignment of resources and other costs that did not recur in the third quarter of 2026.
Growth was broad across the operating segments. Workforce Solutions revenue increased 7% to $693.9 million, led by 9% growth in Verification Services, while Employer Services declined 5%. U.S. Information Solutions increased 13% to $599.1 million, and International rose 9% reported and 7% in local currency to $399.5 million. Asia Pacific delivered 20% reported growth, Latin America grew 12% reported, and management identified Financial Institutions, Auto, Australia and Latin America as contributors.
Profitability improved across Workforce Solutions and USIS. Workforce Solutions operating margin was 44.1%, compared to 43.8%, and its adjusted EBITDA margin was 51.4%, compared to 51.2%. USIS operating margin was 24.3%, compared to 23.2%, while adjusted EBITDA margin was 35.4%, compared to 35.2%. Consolidated adjusted EBITDA margin increased to 33.1% from 32.7%. International operating margin was flat at 15.8%, while adjusted EBITDA margin declined to 30.9% from 31.3%.
Capital deployment included $158 million returned to shareholders in the quarter, comprising repurchases of 0.5 million shares for $92 million and $66 million in quarterly dividends. For the nine months ended September 30, 2026, cash provided by operating activities was $1,142.1 million and capital expenditures were $(378.9) million. Cash and cash equivalents were $192.9 million, short-term debt and current maturities were $157.7 million, and long-term debt was $5,049.0 million at September 30, 2026.
The outlook incorporates a weaker mortgage backdrop. Equifax maintained its Diversified Markets revenue-growth guidance of high single-digit percent, but reduced full-year revenue guidance at the midpoint to $6.661 billion because it expects the much weaker U.S. mortgage market from the latter half of the third quarter to persist through year end. FY 2026 adjusted EPS guidance is $8.45 per share to $8.55 per share, with a midpoint of $8.50 per share. Management expects cost and expense management, including AI-driven operating cost efficiencies and optimizations, to principally recover the gross-margin impact from lower Mortgage revenue.
Management, verbatim
“Equifax delivered a strong third quarter performance executing on our EFX2028 Strategic Priorities with reported revenue of $1.693 billion, up 10% on a reported basis, with 9% local currency revenue growth.”
Mark W. Begor, Equifax Chief Executive Officer
“As a result, we are reducing our full year 2026 revenue guidance at the midpoint to $6.661 billion, reflecting this reduction in our U.S. Mortgage related revenue.”
Mark W. Begor, Equifax Chief Executive Officer
“Despite the impact of the significantly weakened U.S. mortgage market on the second half of 2026 revenue, we expect to deliver 2026 Adjusted EPS Guidance of $8.50 per share, a reduction of only $0.04 per share at the midpoint and well within our previous Guidance range.”
Mark W. Begor, Equifax Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, comparison of actual results with prior guidance is unavailable.
- GAAP gross margin and prior-year GAAP gross margin were not reported.
- Quarterly operating cash flow, quarterly capital expenditures and quarterly free cash flow were not reported.
- Free cash flow, cash conversion and their prior-year comparisons were defined but no reported values were provided.
- Gross-margin guidance, operating-expense guidance and tax-rate guidance were not reported.
- A CFO commentary was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.