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Here's Why Investors Should Hold EFX Stock in Their Portfolios Now
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Key Takeaways
Equifax's Workforce Solutions revenues rose 7% in Q2, while state-government deals totaled about $300 million.
EFX launched 54 AI-enabled products in H1, while expected run-rate savings doubled to $150 million.
Equifax's international revenues rose 8%, led by 17% growth in Asia-Pacific and gains across other regions.
Equifax’s (EFX - Free Report) growth is driven by steady Workforce Solutions demand and a sizable pipeline of state-government contracts. Artificial intelligence (AI)-enabled product innovation and expanded internal automation are strengthening revenue opportunities while supporting productivity and margin gains. International operations also improve visibility into sustained top-line expansion.
The company’s third-quarter 2026 earnings are expected to increase 8.3% year over year. Its 2026 and 2027 earnings are projected to rise 11.8% and 17.7%, respectively. Revenues are anticipated to grow 10.9% in 2026 and 9.6% in 2027.
Factors That Bode Well for EFX’s Success
Workforce Solutions’ Performance Drives Top-Line Growth: Equifax continues to benefit from sustained demand and customer wins in Workforce Solutions. Segment revenues increased 7% year over year to $705.4 million in the second quarter of 2026. Verification Services revenues rose 7% to $607.6 million, supported by high-double-digit growth in Talent Solutions and Consumer Lending. Mortgage revenues advanced 8%, while Employer Services revenues increased 3% to $97.8 million. Equifax signed about $300 million, principally with state-government agreements, including roughly $100 million of new business and $200 million of renewals, supporting future growth.
AI-driven Growth & Productivity: EFX is expanding AI across products and internal operations to improve growth and efficiency. Its Vitality Index reached 16% in the second quarter of 2026, above the 15% full-year goal and 10% long-term framework. The company launched 54 AI-enabled products in the first half, supported by proprietary data that generates more than 90% of revenues across more than 100 global data exchanges. Management doubled its expected AI-driven run-rate savings for 2026-2028 to $150 million from $75 million.
Global Performance Supports Visibility: Equifax’s International revenues increased 8% year over year on a reported basis and 4% in local currency to $383.1 million. Asia Pacific led the growth, with revenues rising 17% to $99.7 million, or 7% on a local currency basis, supported by online business-to-business and commercial offerings. Latin America revenues increased 9% to $109 million, while Canada and Europe grew 6% and 2%, respectively. The broad-based regional gains support a more diversified revenue base and improve visibility into continued international growth.
Watch Out for These Risks to EFX Stock
Elevated Rates Affect Mortgage Market: Higher interest rates continue to weigh on U.S. mortgage activity. Mortgage rates increased to about 6.6% during the second quarter of 2026, while management noted further market weakening as long-term rates moved higher. The company expects 2026 mortgage originations to decline by low single digits. Persistently elevated rates could constrain transaction volumes and temper mortgage-related growth despite recent share gains and new product adoption.
Execution & Adoption Risks: Several growth initiatives depend on timely customer implementation and regulatory approvals. New government contracts may take time to reach full revenue contribution, while broader VantageScore adoption depends partly on additional Federal Housing Finance Agency lender approvals. The recent Círculo acquisition also remains subject to customary closing conditions and regulatory clearance.
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Here's Why Investors Should Hold EFX Stock in Their Portfolios Now
Key Takeaways
Equifax’s (EFX - Free Report) growth is driven by steady Workforce Solutions demand and a sizable pipeline of state-government contracts. Artificial intelligence (AI)-enabled product innovation and expanded internal automation are strengthening revenue opportunities while supporting productivity and margin gains. International operations also improve visibility into sustained top-line expansion.
The company’s third-quarter 2026 earnings are expected to increase 8.3% year over year. Its 2026 and 2027 earnings are projected to rise 11.8% and 17.7%, respectively. Revenues are anticipated to grow 10.9% in 2026 and 9.6% in 2027.
Factors That Bode Well for EFX’s Success
Workforce Solutions’ Performance Drives Top-Line Growth: Equifax continues to benefit from sustained demand and customer wins in Workforce Solutions. Segment revenues increased 7% year over year to $705.4 million in the second quarter of 2026. Verification Services revenues rose 7% to $607.6 million, supported by high-double-digit growth in Talent Solutions and Consumer Lending. Mortgage revenues advanced 8%, while Employer Services revenues increased 3% to $97.8 million. Equifax signed about $300 million, principally with state-government agreements, including roughly $100 million of new business and $200 million of renewals, supporting future growth.
Equifax, Inc. Revenue (TTM)
Equifax, Inc. revenue-ttm | Equifax, Inc. Quote
AI-driven Growth & Productivity: EFX is expanding AI across products and internal operations to improve growth and efficiency. Its Vitality Index reached 16% in the second quarter of 2026, above the 15% full-year goal and 10% long-term framework. The company launched 54 AI-enabled products in the first half, supported by proprietary data that generates more than 90% of revenues across more than 100 global data exchanges. Management doubled its expected AI-driven run-rate savings for 2026-2028 to $150 million from $75 million.
Global Performance Supports Visibility: Equifax’s International revenues increased 8% year over year on a reported basis and 4% in local currency to $383.1 million. Asia Pacific led the growth, with revenues rising 17% to $99.7 million, or 7% on a local currency basis, supported by online business-to-business and commercial offerings. Latin America revenues increased 9% to $109 million, while Canada and Europe grew 6% and 2%, respectively. The broad-based regional gains support a more diversified revenue base and improve visibility into continued international growth.
Watch Out for These Risks to EFX Stock
Elevated Rates Affect Mortgage Market: Higher interest rates continue to weigh on U.S. mortgage activity. Mortgage rates increased to about 6.6% during the second quarter of 2026, while management noted further market weakening as long-term rates moved higher. The company expects 2026 mortgage originations to decline by low single digits. Persistently elevated rates could constrain transaction volumes and temper mortgage-related growth despite recent share gains and new product adoption.
Execution & Adoption Risks: Several growth initiatives depend on timely customer implementation and regulatory approvals. New government contracts may take time to reach full revenue contribution, while broader VantageScore adoption depends partly on additional Federal Housing Finance Agency lender approvals. The recent Círculo acquisition also remains subject to customary closing conditions and regulatory clearance.
EFX’s Zacks Rank & Stocks to Consider
Equifax currently carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Business Services sector are TrueBlue, Inc. (TBI - Free Report) and Trane Technologies plc (TT - Free Report) .
TrueBlue carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 14%.
TBI beat earnings estimates in three of the last four reported quarters and missed once, with an average earnings surprise of 22.4%.
Trane Technologies also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 13.7%.
TT delivered a trailing four-quarter earnings surprise of 2.1%, on average.