Equifax Q4 Earnings Beat Estimates, Revenues Jump 9% Y/Y

Equifax Inc. EFX has reported impressive fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

EFX posted $2.09 in EPS, beating the Zacks Consensus Estimate by 2.5%. This marked a 1.4% dip from the fourth quarter of 2025. The company recorded $1.6 billion in its top line, surpassing the consensus estimate by 1.3%. Revenues spiked 9.2% from the year-ago quarter’s actual.

Equifax shares have lost 34.7% in a year compared with the 41.6% decline of the industry and the 18.5% rally of the Zacks S&P 500 composite.

EFX’s Solid Segmental Growth Beats Expectations

The workforce solutions segment saw 9% year-over-year growth in revenues. The figure stands at $652.2 million, outpacing our estimate of $628 million. Within this segment, verification services registered $557 million in revenues, up 10% from the year-ago quarter and employer Services revenues moved up 2% to $95.2 million.

The USIS segment witnessed $526.9 million in revenues. The metric gained 12% year over year and surpassed our projection of $513.8 million. Within this segment, Online Information Solutions generated $447.9 million, increasing 13% year over year. Financial Marketing Services revenues moved up 2% to $79 million.

International revenues witnessed a 7% year-over-year rise on a reported basis and 5% in local currency basis to $371.5 million. We estimated EFX to record $367.1 million in international revenues, which the company successfully surpassed in the fourth quarter of 2025.

Revenues from Europe gained 9% year over year on a reported basis and 4% on a local-currency basis to $108.7 million. The company logged $107.5 million in revenues in Latin America, which grew 8% year over year on a reported basis and 6% on a local-currency basis.

The Asia Pacific and Canada reported $87.2 million and 68.1 million in revenues, respectively. Asia Pacific revenues moved up 4% year over year on a reported and local-currency basis. Canada delivered 5% year-over-year growth in revenues on a reported basis and 4% in local-currency basis.

Slight Uptick in EFX’s Adjusted EBITDA, Margins Erode

The company recorded $508.2 million in adjusted EBITDA, delivering marginal year-over-year growth. Its margin tanked 260 basis points (bps).

Workforce Solution’s adjusted EBITDA margin was 51.3%, down 60 bps from the year-ago quarter. On the USIS front, the adjusted EBITDA margin was 36.3%, which declined 200 bps year over year. The international segment delivered 31.6% in adjusted EBITDA, losing 110 bps from the fourth quarter of 2024.

EFX’s Resilient Cash Position, Debt Stable

Equifax exited the fourth quarter with cash and cash equivalents of $180.8 million compared with $189 million at the end of the third quarter of 2025. The company has a long-term debt of $4.1 billion that remained flat with the preceding quarter.

Cash generated from operating activities amounted to $470.8 million, whereas capital expenditure totaled $130 million. The company distributed $60.8 million as dividends in the quarter.

Equifax’s Q1 & 2026 Outlook

Management expects $1.597-$1.627 billion in revenues for the first quarter of 2025. The provided guided range stands below the Zacks Consensus Estimate of $1.57 billion. EPS is expected to be $1.63-$1.73. This outlook is lower than the consensus estimate of $1.78.

For 2026, revenues are expected to be $6.66-$6.78 billion. This guidance is positioned higher than the consensus mark of $6.6 billion. Management provided an EPS outlook of $8.3-$8.7. The mid-point ($8.5) of the outlook is lower than the Zacks Consensus Estimate of $8.66.

Equifax carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Gartner, Inc. IT reported fourth-quarter 2025 results.

The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.

Automatic Data Processing, Inc. ADP posted impressive second-quarter fiscal 2026 results.

ADP’s earnings per share of $2.62 beat the consensus estimate by 1.6% and increased 11.5% from the year-ago quarter. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but grew 6.1% on a year-over-year basis.

Free Report: Profiting from the 2nd Wave of AI Explosion

The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.

Investors who bought shares like Nvidia at the right time have had a shot at huge gains.

But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.

Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research