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Equifax Gears Up to Post Q3 Earnings: What Should Investors Know?

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Key Takeaways

  • Equifax's Q3 revenues are projected to rise 9.6% y/y to $1.7B, with EPS expected to grow 7.8% to $2.20.
  • Workforce Solutions revenues will likely grow 12%, led by verification demand and robust lending activity.
  • AI-led productivity gains, cloud cost savings, and USIS and International margin growth may boost earnings.

Equifax (EFX - Free Report) is scheduled to report third-quarter 2026 results on Oct. 20, before market open.

EFX has an impressive earnings surprise history. It has outperformed the Zacks Consensus Estimate in the four preceding quarters, with an average of 5%.

Equifax, Inc. Price and EPS Surprise

Equifax, Inc. Price and EPS Surprise

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

Equifax’s Q3 Expectations

The Zacks Consensus Estimate for Equifax’s top line is pinned at $1.7 billion, hinting at a 9.6% rise from the year-ago quarter’s actual. For Workforce Solutions, we expect revenues of $727.6 million, suggesting 12% year-over-year growth. Increasing penetration in employment verification, education and incarceration data is expected to have driven Talent Solutions growth.

Additionally, robust Consumer Lending activity fueled by higher volumes and product rollouts across auto, credit card and consumer finance is also anticipated to have boosted revenues. The adjusted EBITDA for Workforce Solutions is anticipated to be $364.4 million. The figure is expected to increase 9.5% from the year-ago quarter’s actual.

We expect the U.S. Information Solutions (“USIS”) segment to generate $572.3 million in revenues, suggesting a 7.9% year-over-year rise. The USIS segment is anticipated to have benefited from strong financial institution and auto lending volumes, business wins and a prudent pricing strategy. Adjusted EBITDA for USIS is expected to advance 7.3% year over year to $200.2 million.

International revenues are anticipated to gain 9.2% from the year-ago quarter’s actual to $398.8 million. Improving business momentum across international markets is anticipated to have supported this segment’s performance. Expansion of AI-backed analytical and decisioning solutions, including Ignite AI Advisor in Canada and Equifax IQ in Latin America, is projected to have improved customer engagement and product adoption. For this segment, adjusted EBITDA is expected to be $121.5 million, implying 6.2% year-over-year growth.

The consensus estimate for earnings per share is pegged at $2.2, implying a 7.8% year-over-year increase. The bottom line is likely to have been improved by AI-driven productivity gains, technology cost savings derived from the completion of cloud technology transformation, and strong margin expansions in the USIS and International segments.

What Our Model Says About EFX

Our proven model does not conclusively predict an earnings beat for Equifax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Equifax has an Earnings ESP of -0.59% and a Zacks Rank of 4 (Sell) at present.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Booz Allen Hamilton (BAH - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter fiscal 2027 revenues is pegged at $2.8 billion, indicating a year-over-year 3.1% dip. For EPS, the consensus estimate is pegged at $1.44, hinting at a 3.4% dip from the year-ago quarter’s actual. It has outperformed the Zacks Consensus Estimate in the three preceding quarters and met once, with an average of 24.2%.

BAH has an Earnings ESP of +5.31% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare second-quarter fiscal 2027 results on Oct. 23.

WEX (WEX - Free Report) : The Zacks Consensus Estimate for third-quarter 2026 revenues is $753 million, indicating 8.9% growth from the year-ago quarter’s actual. For earnings, the consensus estimate is $5.64 per share, suggesting 22.9% growth from the year-ago quarter’s reported number. WEX surpassed the consensus estimate in the past four quarters, with an average beat of 4.3%.

WEX has an Earnings ESP of +3.22% and a Zacks Rank of 2. It is scheduled to declare third-quarter 2026 results on Oct. 28.

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