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TRU Q1 Earnings Beat Estimates on Strong U.S. Financial Services
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Key Takeaways
TransUnion posted Q1 adjusted EPS of $1.18, up 12.4% y/y and beating the consensus estimate of $1.11.
TRU's revenues rose 13.7% y/y to $1.25B, led by U.S. Markets at $975.1M and Financial Services at $500.5M.
TRU ups its 2026 view and expects the Mexico buyout to aid, while retaining the 8-9% organic growth view.
TransUnion (TRU - Free Report) delivered adjusted earnings of $1.18 per share in the first quarter of 2026, growing 12.4% year over year and beating the Zacks Consensus Estimate of $1.11 by 6.3%.
Quarterly revenues were $1.25 billion, rising 13.7% from the year-ago period and topping the consensus mark of $1.21 billion by 3.1%. Organic constant-currency revenue growth was 10.7%, reflecting continued momentum across the key U.S. verticals.
TransUnion’s U.S. Markets segment generated $975.1 million in revenues in the quarter, driven by Financial Services at $500.5 million. Emerging Verticals produced $334.7 million, while Consumer Interactive contributed $139.9 million.
Management characterized the operating backdrop as relatively stable through mid-April, with customer demand and volume trends tracking at or ahead of expectations. The company highlighted commercial momentum in credit marketing and fraud solutions, alongside ongoing traction in non-credit offerings.
TransUnion Shows Breadth Across International Regions
TRU’s International segment posted $274 million in revenues, with results varying by geography. The U.K. delivered $72.2 million, while Latin America contributed $53.9 million and Canada produced $43.3 million. Africa revenues were $20.9 million.
Offsetting those areas of strength, India revenues were $61.6 million and the Asia Pacific revenues were $22.1 million. Management noted that performance across India, Latin America and the Asia Pacific is expected to improve as 2026 progresses, supported by gradual recoveries and better comps in certain markets.
TRU’s Profitability Reflects Stronger EBITDA, Margin Down
TransUnion reported consolidated adjusted EBITDA of $437.9 million, up 10.3% year over year. The adjusted EBITDA margin was 35.2%, down from 36.2% in the prior-year quarter.
On a GAAP basis, net income attributable to TransUnion increased to $397.1 million from $148.1 million a year ago, benefiting from a $225.5-million gain on the acquisition of an affiliate. Operating expenses rose year over year, with the cost of services at $519.5 million and selling, general and administrative expenses at $329.1 million.
TransUnion Highlighted AI & Mortgage-Related Tailwinds
TRU emphasized that AI is driving growth in two ways: higher data use among certain customers and faster product innovation. Management pointed to new AI-enabled offerings built on OneTru, including an analytics workflow that uses Google’s Gemini models to streamline advanced credit modeling and support more frequent model development.
In mortgage, management cited a late-February rate dip that briefly lifted refi-driven activity, contributing to stronger-than-expected mortgage performance. For the quarter, mortgage revenues increased 50%, and management also discussed early assessment and prequalification activity as areas supporting data use.
TRU’s Balance Sheet Shifts With Mexico Acquisition
TransUnion ended the quarter with $733 million in cash and cash equivalents, and $5.6 billion in debt, with the leverage ratio rising modestly to 2.8X following the Trans Union de Mexico transaction. The company said that it funded the roughly $660-million purchase primarily with $520 million drawn from its revolving credit facility plus cash on hand.
Cash provided by operating activities was $84.2 million in the quarter versus $52.5 million a year ago. Capital expenditure was $65.2 million, representing about 5% of revenues. The company also repurchased $12.1 million in common stock during the quarter and has stated that it expects to increase repurchases over the remainder of 2026 under its authorization.
TransUnion’s Outlook Raised With Acquisition Contribution
For the second quarter of 2026, TRU guided revenues of $1.271-$1.283 billion and adjusted diluted earnings per share of $1.13-$1.15. Adjusted EBITDA is expected to be $439-$445 million, implying a margin of 34.5-34.7%.
For 2026, the company guided revenues of $5.10-$5.135 billion and adjusted diluted earnings per share of $4.68-$4.75. Adjusted EBITDA is projected at $1.796-$1.816 billion, with a margin of 35.2-35.4%. Management said the higher end of the guidance incorporates the addition of Trans Union de Mexico, while maintaining its organic constant-currency growth outlook of 8-9%, balancing the first-quarter outperformance against macro uncertainty.
IQVIA Holdings Inc. (IQV - Free Report) posted first-quarter 2026 adjusted earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.83 by 2.5%. Revenues came in at $4.15 billion, topping the consensus mark of $4.08 billion by 1.6%.
Results improved year over year, with adjusted diluted earnings per share up 7.4% and revenues rising 8.4%.
Verisk Analytics, Inc. (VRSK - Free Report) reported first-quarter 2026 diluted adjusted earnings per share of $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4%. The figure increased 5.2% from the year-ago quarter.
Revenues came in at $782.6 million, topping the consensus mark of $775.9 million by 0.9% and rising 3.9% year over year.
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TRU Q1 Earnings Beat Estimates on Strong U.S. Financial Services
Key Takeaways
TransUnion (TRU - Free Report) delivered adjusted earnings of $1.18 per share in the first quarter of 2026, growing 12.4% year over year and beating the Zacks Consensus Estimate of $1.11 by 6.3%.
Quarterly revenues were $1.25 billion, rising 13.7% from the year-ago period and topping the consensus mark of $1.21 billion by 3.1%. Organic constant-currency revenue growth was 10.7%, reflecting continued momentum across the key U.S. verticals.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
TRU’s U.S. Markets Lead Revenue Mix
TransUnion’s U.S. Markets segment generated $975.1 million in revenues in the quarter, driven by Financial Services at $500.5 million. Emerging Verticals produced $334.7 million, while Consumer Interactive contributed $139.9 million.
Management characterized the operating backdrop as relatively stable through mid-April, with customer demand and volume trends tracking at or ahead of expectations. The company highlighted commercial momentum in credit marketing and fraud solutions, alongside ongoing traction in non-credit offerings.
TransUnion Shows Breadth Across International Regions
TRU’s International segment posted $274 million in revenues, with results varying by geography. The U.K. delivered $72.2 million, while Latin America contributed $53.9 million and Canada produced $43.3 million. Africa revenues were $20.9 million.
Offsetting those areas of strength, India revenues were $61.6 million and the Asia Pacific revenues were $22.1 million. Management noted that performance across India, Latin America and the Asia Pacific is expected to improve as 2026 progresses, supported by gradual recoveries and better comps in certain markets.
TRU’s Profitability Reflects Stronger EBITDA, Margin Down
TransUnion reported consolidated adjusted EBITDA of $437.9 million, up 10.3% year over year. The adjusted EBITDA margin was 35.2%, down from 36.2% in the prior-year quarter.
On a GAAP basis, net income attributable to TransUnion increased to $397.1 million from $148.1 million a year ago, benefiting from a $225.5-million gain on the acquisition of an affiliate. Operating expenses rose year over year, with the cost of services at $519.5 million and selling, general and administrative expenses at $329.1 million.
TransUnion Highlighted AI & Mortgage-Related Tailwinds
TRU emphasized that AI is driving growth in two ways: higher data use among certain customers and faster product innovation. Management pointed to new AI-enabled offerings built on OneTru, including an analytics workflow that uses Google’s Gemini models to streamline advanced credit modeling and support more frequent model development.
In mortgage, management cited a late-February rate dip that briefly lifted refi-driven activity, contributing to stronger-than-expected mortgage performance. For the quarter, mortgage revenues increased 50%, and management also discussed early assessment and prequalification activity as areas supporting data use.
TRU’s Balance Sheet Shifts With Mexico Acquisition
TransUnion ended the quarter with $733 million in cash and cash equivalents, and $5.6 billion in debt, with the leverage ratio rising modestly to 2.8X following the Trans Union de Mexico transaction. The company said that it funded the roughly $660-million purchase primarily with $520 million drawn from its revolving credit facility plus cash on hand.
Cash provided by operating activities was $84.2 million in the quarter versus $52.5 million a year ago. Capital expenditure was $65.2 million, representing about 5% of revenues. The company also repurchased $12.1 million in common stock during the quarter and has stated that it expects to increase repurchases over the remainder of 2026 under its authorization.
TransUnion’s Outlook Raised With Acquisition Contribution
For the second quarter of 2026, TRU guided revenues of $1.271-$1.283 billion and adjusted diluted earnings per share of $1.13-$1.15. Adjusted EBITDA is expected to be $439-$445 million, implying a margin of 34.5-34.7%.
For 2026, the company guided revenues of $5.10-$5.135 billion and adjusted diluted earnings per share of $4.68-$4.75. Adjusted EBITDA is projected at $1.796-$1.816 billion, with a margin of 35.2-35.4%. Management said the higher end of the guidance incorporates the addition of Trans Union de Mexico, while maintaining its organic constant-currency growth outlook of 8-9%, balancing the first-quarter outperformance against macro uncertainty.
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
IQVIA Holdings Inc. (IQV - Free Report) posted first-quarter 2026 adjusted earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.83 by 2.5%. Revenues came in at $4.15 billion, topping the consensus mark of $4.08 billion by 1.6%.
Results improved year over year, with adjusted diluted earnings per share up 7.4% and revenues rising 8.4%.
Verisk Analytics, Inc. (VRSK - Free Report) reported first-quarter 2026 diluted adjusted earnings per share of $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4%. The figure increased 5.2% from the year-ago quarter.
Revenues came in at $782.6 million, topping the consensus mark of $775.9 million by 0.9% and rising 3.9% year over year.