TLDR
- Equifax delivered Q1 adjusted earnings of $1.86 per share, surpassing analyst expectations of $1.69
- Quarterly revenue reached $1.65 billion, reflecting 14% annual growth and exceeding guidance by $37 million
- USIS mortgage revenue skyrocketed 60%, fueled by robust early-quarter demand in January and February
- Geopolitical tensions involving Iran triggered mid-quarter rate increases, cooling mortgage demand and constraining annual projections
- Full-year targets remain unchanged: 10%–12% revenue expansion and adjusted EPS between $8.34–$8.74
Equifax delivered an impressive first-quarter performance that exceeded analyst expectations across key metrics. However, geopolitical developments involving Iran created headwinds that limited management’s willingness to raise full-year projections.
The credit reporting giant announced first-quarter adjusted earnings of $1.86 per share, representing growth from $1.53 in the prior-year period and beating the Street’s $1.69 forecast. Quarterly revenue climbed to $1.65 billion, marking a 14% year-over-year increase and landing $37 million above the company’s February guidance midpoint.
Shares of EFX traded unchanged in early premarket activity at $198.45. The stock has declined approximately 8.5% since the beginning of the year entering Tuesday’s session.
The star of the quarter was the USIS division, where revenue climbed 21%. Within that segment, mortgage-related revenue exploded by 60%, powered predominantly by vigorous demand during the first two months of the quarter—before interest rates began their ascent.
The Workforce Solutions segment delivered steady results with 10% revenue growth. Verification Services expanded 14%, supported by double-digit increases across government and consumer lending verticals.
International operations contributed 11% reported revenue growth, though local currency growth was more subdued at 4%. Canada emerged as a regional highlight with 8% local currency expansion.
Iran Conflict Hits Mortgage Pipeline
The Iran war fundamentally altered market dynamics midway through the quarter. Rising interest rates triggered a slowdown in U.S. mortgage originations, influencing management’s cautious stance on the remainder of 2026.
CEO Mark Begor attributed the impressive Q1 performance to “very strong U.S. Mortgage revenue growth of 38%, principally in January and February before rates increased from the Iran conflict.”
Despite the quarter’s outperformance, Equifax maintained its full-year constant currency revenue growth target at approximately 10%, pointing to elevated rate conditions and broader economic uncertainty.
The company did modestly adjust its reported revenue guidance upward by $25 million and increased its adjusted EPS forecast by $0.04 per share—both revisions stemming exclusively from favorable currency exchange movements rather than underlying business improvements.
Price War With FICO Continues
Equifax remains embroiled in a six-month pricing dispute with Fair Isaac (FICO), joined by competing credit bureaus Experian and TransUnion. Regulatory authorities and congressional leaders are pressing all parties to reduce costs that impact housing affordability, particularly credit scoring fees.
Second-quarter guidance anticipates reported revenue between $1.68 billion and $1.71 billion, with adjusted earnings projected at $2.15 to $2.25 per share.
First-quarter net income totaled $171.5 million, advancing 29% from $133.1 million in the comparable 2025 period. Diluted earnings per share reached $1.42, representing 34% year-over-year growth.
The company distributed $327 million to shareholders during the quarter, allocating $260 million toward share repurchases and $67 million in dividend payments.
Equifax’s innovative product Vitality Index achieved 17% in the first quarter, significantly exceeding the company’s long-term 10% target threshold.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
