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TransUnion Stock Gains 6% Post Reporting Q3 Earnings & Revenue Beat

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Key Takeaways

  • TransUnion's Q3 earnings and revenues topped estimates, fueling a 5.8% stock rise.
  • TRU raised its 2025 revenue outlook to $4.524-$4.544 billion and EPS to $4.19-$4.25.
  • The U.S. and International segments drove 7.8% revenue growth, with strong gains in Financial Services.

TransUnion (TRU - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

The better-than-expected results and raised guidance impressed the market as the stock gained 5.8% since the release of results on Oct. 23, 2025.

For 2025, TransUnion hiked its revenue guidance to $4.524-$4.544 billion from the preceding quarter’s view of $4.432-$4.472 billion. The mid-point ($4.534 billion) of the guided range is slightly higher than the Zacks Consensus Estimate for revenues of $4.53 billion.

TRU raised its adjusted EPS guidance to $4.19-$4.25 from the preceding quarter’s view of $4.03-$4.14. The guided range is higher than the Zacks Consensus Estimate for earnings of $4.17.

TRU’s quarterly adjusted earnings (adjusting 61 cents from non-recurring items) of $1.10 per share surpassed the consensus mark by 5.8% and increased by the same margin year over year. Total revenues of $1.2 billion outpaced the consensus mark by 3.1% and increased 7.8% from the year-ago quarter.

The TRU stock has gained 3.6% in the past six months, outperforming the 9.5% decline of the industry it belongs to, while underperforming 24.2% growth of the Zacks S&P 500 Composite.

TransUnion Price, Consensus and EPS Surprise

 

TransUnion Price, Consensus and EPS Surprise

TransUnion price-consensus-eps-surprise-chart | TransUnion Quote

TransUnion’s Revenues by Segments

The U.S. Markets segment’s revenues of $912.8 million increased 7.6% year over year and surpassed our estimate of $897.7 million. Within the segment, Financial Services’ revenues of $438 million grew 19.3% from the year-ago quarter. Emerging Vertical revenues were $330 million, which increased 7.5% on a year-over-year basis. Consumer Interactive revenues were $144.8 million, which declined 16.6% from the third quarter of 2024.

The International segment’s revenues increased 7.7% year over year to $260.1 million, and beat our projection of $235.3 million. Revenues from Canada were $43.4 million, which grew 10% year over year on a reported basis and 11% on a constant-currency basis. The metric beat our estimate of $35.6 million.

Revenues from India gained marginally on a reported basis and 4.6% on a constant-currency basis to $68.5 million and surpassed our forecast of $68.1 million. Revenues from the Asia-Pacific were $23.7 million, down 7.6% from the year-ago quarter on a reported basis and 7.5% on a constant-currency basis, missing our estimate of $26.8 million.

Revenues from Latin America rose marginally on a reported basis and remained flat on a constant-currency basis to $33.7 million and outpaced our projection of $29.5 million. Revenues from Africa increased 13.7% on a reported basis and 11.9% on a constant-currency basis to $19.4 million, beating our estimate of $18.5 million. Revenues from the U.K. were $71.4 million, up 23.5% year over year on a reported basis and 18.9% on a constant-currency basis, surpassing our estimation of $56.7 million.

TRU’s Operating Performance

Adjusted EBITDA was $425 million, marking year-over-year growth of 8% on both reported and a constant-currency basis. The reported figure beat our estimate of $402.5 million. The adjusted EBITDA margin was 36.3%, flat with the year-ago figure.

Balance Sheet & Cash Flow of TRU

TransUnion had $749.9 million in cash and cash equivalents at the end of the quarter compared with $687.5 million at the end of the second quarter of 2025. The long-term debt was $5 billion, flat with the previous quarter.

Cash generated from operating activities in the quarter was $324.3 million. Capital expenditure was $83.9 million.

TransUnion’s Q4 & 2025 Outlook

For the fourth quarter of 2025, TransUnion expects revenues of $1.119-$1.139 billion. The mid-point ($1.129 billion) of the guided range is slightly lower than the Zacks Consensus Estimate for revenues of $1.13 billion. TRU expects adjusted earnings per share (EPS) between 97 cents and $1.02. The mid-point (99.5 cents) of the guided range is slightly lower than the Zacks Consensus Estimate for earnings of $1.00 per share. The guidance for the adjusted EBITDA is kept at $393-$407 million.

For 2025, the adjusted EBITDA outlook is hiked to $1.622-$1.637 billion from the preceding quarter’s view of $1.58-$1.615 billion.

TRU has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Paychex, Inc. (PAYX - Free Report) reported impressive first-quarter fiscal 2026 results.

PAYX’s fiscal first-quarter earnings of $1.22 per share beat the Zacks Consensus Estimate by a slight margin and increased 5.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by a slight margin and gained 16.8% from the year-ago quarter.

FactSet (FDS - Free Report) reported mixed results for the fourth-quarter fiscal 2025.

FDS’s earnings per share of $4.05 missed the consensus mark by 2.4% but increased 8.3% from the year-ago quarter. Revenues of $596.9 million beat the Zacks Consensus Estimate by a slight margin and 6.2% from the year-ago quarter.


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