Equifax earnings exceeded analyst expectations for the third quarter of 2026, and shares rose 10% on October 20. Adjusted earnings reached $2.26 per share against a $2.20 estimate, while revenue broadly matched expectations. The earnings beat came alongside a lower full-year outlook as management warned that weaker U.S. mortgage conditions would persist.
Key Takeaways
- Adjusted earnings per share rose 11% year over year, beating consensus by $0.06.
- Revenue increased 10% to $1.693 billion, with growth across all three business units.
- Equifax cut its annual revenue and adjusted earnings guidance because of a weaker mortgage market.
Table of Contents
- Equifax earnings rise faster than revenue
- Growth extends beyond mortgage-related services
- Weaker mortgage market lowers the annual outlook
- Conclusion
Equifax earnings rise faster than revenue
Equifax's third-quarter 2026 results announcement showed net income attributable to the company of $211.7 million for the quarter ended September 30, up 32% from $160.2 million a year earlier. Reported diluted earnings per share increased 39% to $1.79.
Adjusted earnings per share of $2.26 excluded certain items and were distinct from the reported earnings measure. Adjusted EBITDA margin widened to 33.1% from 32.7%, while revenue increased 9% on a local-currency basis.
Operating expenses of approximately $1.34 billion exceeded the $1.30 billion analyst forecast. Even so, the adjusted earnings result topped expectations, while revenue of approximately $1.69 billion met estimates.
| Item | Details |
|---|---|
| Workforce Solutions | Q3 revenue of $693.9 million, up 7% year over year. |
| U.S. Information Solutions | Q3 revenue of $599.1 million, up 13% year over year. |
| International | Q3 revenue of $399.5 million, up 9% reported and 7% in local currency. |
Growth extends beyond mortgage-related services
Equifax's Diversified Markets businesses delivered 8% reported revenue growth, providing a source of expansion beyond mortgages. Workforce Solutions recorded growth in verification services, while financial institutions and automotive customers supported U.S. Information Solutions.
U.S. mortgage revenue increased 15% despite what management described as a weaker market. Performance varied within the company: mortgage revenue was approximately flat at Workforce Solutions but rose 28% at U.S. Information Solutions.
Equifax also returned $158 million to shareholders during the quarter. That included $92 million spent repurchasing 0.5 million shares and $66 million in quarterly dividends.
Weaker mortgage market lowers the annual outlook
Chief Executive Mark W. Begor said the weaker U.S. mortgage conditions seen in the latter half of the third quarter were expected to continue through the remainder of 2026. Equifax maintained its expectation for high-single-digit Diversified Markets revenue growth but reduced its overall annual forecast.
Full-year revenue guidance was lowered to $6.646 billion–$6.676 billion, with a midpoint of $6.661 billion. Adjusted earnings guidance was set at $8.45–$8.55 per share, reducing the midpoint by $0.04 to $8.50.
For the fourth quarter, management projected revenue of $1.605 billion–$1.635 billion and adjusted earnings of $2.07–$2.17 per share. The earnings midpoint of $2.12 was below the $2.16 analyst estimate, although that estimate remained within the guidance range. Management said cost controls and AI-driven operating efficiencies should largely offset the gross-margin impact of lower mortgage revenue.
Conclusion
The third-quarter earnings beat contrasted with a more restrained year-end outlook. The next milestones are fourth-quarter performance against the revised guidance and the expected fourth-quarter closing of Equifax's Círculo de Crédito acquisition.
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