Equifax (EFX) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 11% year-over-year to $1.7B, exceeding guidance by $5M, with strong new product innovation and a 16% Vitality Index.

• Adjusted EPS rose 13% to $2.25, $0.05 above guidance; adjusted EBITDA up 10.5% to $552M, with margin expansion driven by AI-enabled productivity.

• Signed agreement to acquire Círculo de Crédito, Mexico’s fastest-growing credit bureau, for $750M, expected to close in Q4 2026 and be accretive in year one.

• Returned $366M to shareholders in Q2 via buybacks and dividends; cash conversion remains above 100%.

• Doubled AI-driven cost reduction target to $150M for 2026-2028.

Financial highlights

• Adjusted EBITDA margin (ex-FICO) up 120 bps YoY to nearly 35%; reported margin 32.5% (flat YoY); EWS segment margin 52%.

• Free cash flow expected to exceed $1B in 2026; $1.6B returned to shareholders over last 12 months.

• Net income attributable to shareholders was $183.9M for Q2 2026, down 4% YoY; diluted EPS $1.54, up 1% YoY.

• $40M net legal settlement charge recorded in Q2.

• Dividends per share increased to $0.56 from $0.50 YoY.

Outlook and guidance

• FY 2026 revenue guidance: $6.71B–$6.78B; adjusted EPS: $8.39–$8.69; adjusted EBITDA: $2.10B–$2.16B.

• Q3 2026 revenue expected at $1.68–$1.71B (+10% YoY); EPS $2.15–$2.25 (+8% YoY); EBITDA $547M–$564M.

• 2026 revenue growth (ex-FICO): 7.2%-8.4%; EBITDA margin expansion ex-FICO: +75 bps.

• U.S. mortgage revenue expected up ~20% in Q3; diversified markets up mid-single digits.

• Guidance assumes continued FICO score sales for all mortgage transactions; VantageScore adoption to be updated as clarity emerges.