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EFX Stock Rallies 13% in 6 Months: Here's What You Should Know
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Key Takeaways
The EFX stock gained 13% in six months, led by diversified growth despite weak mortgage market conditions.
EFX raised its AI-driven savings target to $150M and lifted its 2026 margin expansion outlook.
EFX secured more than $550M in annual government contract value, supporting Workforce Solutions growth.
Equifax (EFX - Free Report) shares have registered impressive growth over the past six months. It has gained 12.9% compared with the industry’s 14.1% return and the Zacks S&P 500 Composite's marginal decline.
6-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
Solid Top-Line Growth Across Segments
Equifax steered past the worrisome mortgage market conditions, remaining persistent in its revenue momentum. In the third quarter of 2026, revenues gained 10% year over year, after an 11% growth in the preceding quarter. Robust demand across Workforce Solutions, U.S. Information Solutions (“USIS”) and International operations supported Diversified Markets' 8% year-over-year revenue growth.
Workforce Solutions revenues moved up 7% year over year, accompanied by a 13% jump in USIS revenues. Investor confidence is expected to have escalated on the back of diversified growth, highlighting EFX’s ability to expand its business beyond mortgage-related offerings.
AI-Backed Productivity Gains & Margin Expansion
EFX’s multi-year net cost-savings objective moved up to $150 million in July 2026 from the previous $75 million, highlighting AI utilization as a prominent means to drive profitability. During the third quarter of 2026, the adjusted EBITDA margin (excluding FICO mortgage royalty revenues) expanded 130 basis points (bps) year over year, backed by operational prowess, prudent cost management and AI-supported efficiency gains.
Compounding on these improvements, management hiked the 2026 margin expansion outlook to 100 bps from the preceding 75 bps. It exhibits the company’s ability to enhance profitability despite mortgage market weakness. The company enjoys additional cost-saving opportunities from AI deployment across technology development, operations, administrative functions and customer service.
Contract Wins Support Workforce Solutions Growth
Equifax’s Government business has gained momentum via new state contracts and renewals. During the first nine months of 2026, the company signed government agreements with annual contract value surpassing $550 million, including nearly $150 million in new business and $400 million in renewals. These agreements are expected to contribute meaningfully to Workforce Solutions revenues in 2027.
In the third quarter of 2026, Talent Solutions gained more than 20% year over year, with Consumer Lending registering a record high-double-digit rally. New products, customer penetration, expanding employment verification records and solid consumer lending solutions demand support for business growth. These developments solidify EFX’s growth prospects outside the cyclical mortgage market.
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Image: Bigstock
EFX Stock Rallies 13% in 6 Months: Here's What You Should Know
Key Takeaways
Equifax (EFX - Free Report) shares have registered impressive growth over the past six months. It has gained 12.9% compared with the industry’s 14.1% return and the Zacks S&P 500 Composite's marginal decline.
6-Month Share Price Performance
Let us delve deeper into the factors that have contributed to the company’s outperformance.
Solid Top-Line Growth Across Segments
Equifax steered past the worrisome mortgage market conditions, remaining persistent in its revenue momentum. In the third quarter of 2026, revenues gained 10% year over year, after an 11% growth in the preceding quarter. Robust demand across Workforce Solutions, U.S. Information Solutions (“USIS”) and International operations supported Diversified Markets' 8% year-over-year revenue growth.
Workforce Solutions revenues moved up 7% year over year, accompanied by a 13% jump in USIS revenues. Investor confidence is expected to have escalated on the back of diversified growth, highlighting EFX’s ability to expand its business beyond mortgage-related offerings.
AI-Backed Productivity Gains & Margin Expansion
EFX’s multi-year net cost-savings objective moved up to $150 million in July 2026 from the previous $75 million, highlighting AI utilization as a prominent means to drive profitability. During the third quarter of 2026, the adjusted EBITDA margin (excluding FICO mortgage royalty revenues) expanded 130 basis points (bps) year over year, backed by operational prowess, prudent cost management and AI-supported efficiency gains.
Compounding on these improvements, management hiked the 2026 margin expansion outlook to 100 bps from the preceding 75 bps. It exhibits the company’s ability to enhance profitability despite mortgage market weakness. The company enjoys additional cost-saving opportunities from AI deployment across technology development, operations, administrative functions and customer service.
Contract Wins Support Workforce Solutions Growth
Equifax’s Government business has gained momentum via new state contracts and renewals. During the first nine months of 2026, the company signed government agreements with annual contract value surpassing $550 million, including nearly $150 million in new business and $400 million in renewals. These agreements are expected to contribute meaningfully to Workforce Solutions revenues in 2027.
In the third quarter of 2026, Talent Solutions gained more than 20% year over year, with Consumer Lending registering a record high-double-digit rally. New products, customer penetration, expanding employment verification records and solid consumer lending solutions demand support for business growth. These developments solidify EFX’s growth prospects outside the cyclical mortgage market.
Zacks Rank & Stocks to Consider
EFX currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are The Geo Group (GEO - Free Report) and Adecco (AHEXY - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Geo Group has a long-term earnings growth expectation of 14%. GEO delivered a trailing four-quarter earnings surprise of 24.1%, on average.
Adecco has a long-term earnings growth expectation of 7.4%. AHEXY delivered a trailing four-quarter earnings surprise of 15.3%, on average.