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Equifax Q4 Earnings Beat Estimates, Revenues Jump 9% Y/Y

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Key Takeaways

  • EFX posted EPS of $2.09 and revenues of $1.6B, beating estimates, with total revenues up 9.2% y/y.
  • Revenues from Workforce Solutions, USIS and International rose 9%, 12% and 7% y/y, respectively.
  • Adjusted EBITDA moved higher, but margins dipped and the Q1 EPS view came in below consensus estimates.

Equifax Inc. (EFX - Free Report) has reported impressive fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

EFX posted $2.09 in EPS, beating the Zacks Consensus Estimate by 2.5%. This marked a 1.4% dip from the fourth quarter of 2025. The company recorded $1.6 billion in its top line, surpassing the consensus estimate by 1.3%. Revenues spiked 9.2% from the year-ago quarter’s actual.

Equifax shares have lost 34.7% in a year compared with the 41.6% decline of the industry and the 18.5% rally of the Zacks S&P 500 composite.

Equifax, Inc. Price, Consensus and EPS Surprise

 

Equifax, Inc. Price, Consensus and EPS Surprise

Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote

EFX’s Solid Segmental Growth Beats Expectations

The workforce solutions segment saw 9% year-over-year growth in revenues. The figure stands at $652.2 million, outpacing our estimate of $628 million. Within this segment, verification services registered $557 million in revenues, up 10% from the year-ago quarter and employer Services revenues moved up 2% to $95.2 million.

The USIS segment witnessed $526.9 million in revenues. The metric gained 12% year over year and surpassed our projection of $513.8 million. Within this segment, Online Information Solutions generated $447.9 million, increasing 13% year over year. Financial Marketing Services revenues moved up 2% to $79 million.

International revenues witnessed a 7% year-over-year rise on a reported basis and 5% in local currency basis to $371.5 million. We estimated EFX to record $367.1 million in international revenues, which the company successfully surpassed in the fourth quarter of 2025.

Revenues from Europe gained 9% year over year on a reported basis and 4% on a local-currency basis to $108.7 million. The company logged $107.5 million in revenues in Latin America, which grew 8% year over year on a reported basis and 6% on a local-currency basis.

The Asia Pacific and Canada reported $87.2 million and 68.1 million in revenues, respectively. Asia Pacific revenues moved up 4% year over year on a reported and local-currency basis. Canada delivered 5% year-over-year growth in revenues on a reported basis and 4% in local-currency basis.

Slight Uptick in EFX’s Adjusted EBITDA, Margins Erode

The company recorded $508.2 million in adjusted EBITDA, delivering marginal year-over-year growth. Its margin tanked 260 basis points (bps).

Workforce Solution’s adjusted EBITDA margin was 51.3%, down 60 bps from the year-ago quarter. On the USIS front, the adjusted EBITDA margin was 36.3%, which declined 200 bps year over year. The international segment delivered 31.6% in adjusted EBITDA, losing 110 bps from the fourth quarter of 2024.

EFX’s Resilient Cash Position, Debt Stable

Equifax exited the fourth quarter with cash and cash equivalents of $180.8 million compared with $189 million at the end of the third quarter of 2025. The company has a long-term debt of $4.1 billion that remained flat with the preceding quarter.

Cash generated from operating activities amounted to $470.8 million, whereas capital expenditure totaled $130 million. The company distributed $60.8 million as dividends in the quarter.

Equifax’s Q1 & 2026 Outlook

Management expects $1.597-$1.627 billion in revenues for the first quarter of 2025. The provided guided range stands below the Zacks Consensus Estimate of $1.57 billion. EPS is expected to be $1.63-$1.73. This outlook is lower than the consensus estimate of $1.78.

For 2026, revenues are expected to be $6.66-$6.78 billion. This guidance is positioned higher than the consensus mark of $6.6 billion. Management provided an EPS outlook of $8.3-$8.7. The mid-point ($8.5) of the outlook is lower than the Zacks Consensus Estimate of $8.66.

Equifax 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

Gartner, Inc. (IT - Free Report) reported fourth-quarter 2025 results.

The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.

Automatic Data Processing, Inc. (ADP - Free Report) posted impressive second-quarter fiscal 2026 results.

ADP’s earnings per share of $2.62 beat the consensus estimate by 1.6% and increased 11.5% from the year-ago quarter. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but grew 6.1% on a year-over-year basis.


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