TLDR
- Equifax delivered Q1 adjusted earnings of $1.86 per share, surpassing analyst expectations of $1.69
- Quarterly revenue reached $1.65 billion, representing 14% year-over-year growth and exceeding guidance by $37 million
- USIS mortgage revenue exploded 60% higher, fueled by robust January and February performance
- Rising interest rates triggered by Iran war tensions cooled mortgage demand and constrained forward-looking projections
- Company maintained full-year targets: 10%–12% revenue expansion and adjusted EPS between $8.34–$8.74
Equifax delivered an impressive opening quarter for 2026, exceeding analyst projections for both profit and sales. However, the celebration was muted — escalating tensions in Iran drove borrowing costs upward and capped what might have been a more optimistic annual outlook.
The credit reporting giant announced first-quarter adjusted earnings of $1.86 per share, climbing from $1.53 in the prior-year period and topping the Street’s $1.69 consensus. Revenue totaled $1.65 billion, marking a 14% year-over-year climb and landing $37 million above the company’s own February guidance midpoint.
Shares of EFX traded essentially unchanged in premarket action at $198.45. The stock has shed approximately 8.5% since the start of the year entering Tuesday’s trading session.
The star performer was the U.S. information solutions division (USIS), which posted 21% revenue growth. Within that segment, mortgage-related revenue skyrocketed 60%, driven primarily by vigorous demand in the year’s first two months — before interest rates began their ascent.
Workforce Solutions delivered respectable results with 10% revenue growth. Verification Services expanded 14%, powered by double-digit gains across government and consumer lending verticals.
International operations generated 11% revenue growth on a reported basis, though local currency growth came in at a more modest 4%. Canadian operations shined with 8% local currency expansion.
Iran Conflict Hits Mortgage Pipeline
The Iran war shifted market dynamics midway through the quarter. As borrowing costs climbed, domestic mortgage volumes decelerated, influencing the company’s outlook for the balance of 2026.
Chief Executive Mark Begor noted the robust Q1 performance was “principally driven by very strong U.S. Mortgage revenue growth of 38%, principally in January and February before rates increased from the Iran conflict.”
Notwithstanding the first-quarter outperformance, Equifax preserved its full-year constant currency revenue growth forecast at approximately 10%, pointing to the interest rate landscape and broader economic uncertainties.
The company did increase its full-year reported revenue projection by $25 million and lifted adjusted EPS guidance by $0.04 per share — though both adjustments stemmed from beneficial currency translation effects rather than improved business fundamentals.
Price War With FICO Continues
Equifax remains engaged in a six-month pricing battle with Fair Isaac (FICO), joined by competing credit bureaus Experian and TransUnion. The four companies face mounting pressure from government officials and legislators to reduce housing costs, with credit scoring fees drawing particular scrutiny.
Second-quarter guidance anticipates reported revenue between $1.68 billion and $1.71 billion, with adjusted earnings projected at $2.15 to $2.25 per share.
Net profit for the first quarter totaled $171.5 million, advancing 29% from $133.1 million in the corresponding 2025 period. Diluted earnings per share reached $1.42, up 34% year-over-year.
Equifax distributed $327 million to shareholders during the quarter through $260 million in stock repurchases and $67 million in dividend payments.
The company’s new product Vitality Index registered 17% in Q1, significantly exceeding its long-term objective of 10%.
