Equifax earnings increased sharply in the third quarter of 2026, but the data and credit-reporting company lowered its full-year outlook as the U.S. mortgage market weakened. In results announced October 20 for the quarter ended September 30, revenue rose 10% to $1.693 billion and net income attributable to Equifax climbed 32% to $211.7 million.
Key Takeaways
- Diluted earnings per share rose 39% to $1.79; adjusted EPS increased 11% to $2.26.
- All three business segments grew, led by a 13% revenue increase at U.S. Information Solutions.
- Equifax reduced its 2026 revenue outlook while maintaining its growth guidance for markets outside U.S. mortgages.
Table of Contents
- Equifax earnings grow faster than revenue
- Business growth masks differing mortgage trends
- Lower annual guidance reflects mortgage weakness
- Shareholder returns and acquisition plans continue
- Conclusion
Equifax earnings grow faster than revenue
Equifax’s third-quarter results announcement showed net income increasing from $160.2 million a year earlier. Diluted earnings per share rose from $1.29 to $1.79, while revenue growth was 9% when measured using prior-year exchange rates.
Adjusted EPS reached $2.26, up 11% year over year. That non-GAAP measure excludes items including acquisition-related amortization and certain legal, regulatory and restructuring costs. Adjusted EBITDA margin increased to 33.1% from 32.7%.
The results show stronger profitability alongside sales growth, but the outlook points to a slower finish to the year. Management expects the mortgage-market weakness seen late in the third quarter to continue through the remainder of 2026.
| Item | Details |
|---|---|
| Latin America | Q3 2026 revenue: $114.1 million; reported growth: 12%; local-currency growth: 8%. |
| Europe | Q3 2026 revenue: $105.5 million; reported growth: 3%; local-currency growth: 4%. |
| Asia Pacific | Q3 2026 revenue: $107.7 million; reported growth: 20%; local-currency growth: 12%. |
| Canada | Q3 2026 revenue: $72.2 million; reported growth: 2%; local-currency growth: 4%. |
Business growth masks differing mortgage trends
Workforce Solutions revenue increased 7% to $693.9 million. Verification Services grew 9%, while Employer Services declined 5%. Within the segment’s markets outside mortgages, Talent Solutions revenue rose more than 20%.
U.S. Information Solutions revenue increased 13% to $599.1 million. Its mortgage revenue grew 28%, contrasting with roughly flat mortgage revenue at Workforce Solutions. Across Equifax, U.S. mortgage revenue increased 15% despite what management described as a weaker market.
International revenue rose 9% to $399.5 million, or 7% in local currency. Asia Pacific delivered the fastest reported regional growth, while Canada and Europe recorded more modest increases.
Revenue outside U.S. mortgages, which Equifax calls Diversified Markets, grew 8% on a reported basis. That breadth helped support the quarter even as mortgage conditions deteriorated.
Lower annual guidance reflects mortgage weakness
Chief Executive Officer Mark W. Begor said mortgage interest rates increased substantially in the latter half of the quarter. Equifax consequently lowered its full-year revenue guidance midpoint to $6.661 billion, with a range of $6.646 billion to $6.676 billion.
The company also reduced its full-year adjusted EPS midpoint by $0.04 to $8.50, within a new range of $8.45 to $8.55. Begor said cost management, including AI-driven operating efficiencies, should largely offset the gross-margin effect of lower mortgage revenue.
Equifax maintained its expectation for high-single-digit revenue growth in Diversified Markets. For the fourth quarter, it forecast revenue of $1.605 billion to $1.635 billion and adjusted EPS of $2.07 to $2.17. These are management forecasts, not reported results.
Shareholder returns and acquisition plans continue
Equifax returned $158 million to shareholders during the quarter. It repurchased 0.5 million shares for $92 million and paid $66 million in quarterly dividends.
The company also said it expected its acquisition of Círculo de Crédito to close in the fourth quarter of 2026. The transaction remained pending at the time of the announcement.
Conclusion
The next reporting period will test Equifax’s ability to preserve profitability as mortgage demand weakens. Its fourth-quarter guidance and the expected closing of the Círculo de Crédito acquisition provide the next concrete milestones.
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