EFX · Q2 2026 Earnings

Cautious

Equifax

Reported July 21, 2026

30-second summary

Equifax delivered Q2 revenue of $1.7001B (+11% YoY) and adjusted EPS of $2.25 — revenue landed at the guide midpoint (not above the high end as Q1's watch list contemplated), EPS printed at the high end and beat the $2.20 consensus by 2.3%, and USIS accelerated to +17% with USIS Mortgage +40%. Management also signed a definitive agreement to acquire Círculo de Crédito, the fastest growing credit bureau in Mexico, for a $750M enterprise value (expected to close Q4 2026). The real signal is in the FY guide: management narrowed FY2026 revenue to $6.710–6.780B (high end cut $25M) and adjusted EPS to $8.39–8.69 (high end cut $0.05), holding the midpoint. After Q1's explicit "we would have raised absent Iran uncertainty," a Q2 print of +11% that produces a high-end trim rather than the implied operational catch-up is the tell — the conservatism is now baked in as a structural haircut, not a temporary reserve.

Headline numbers

EPS

Q2 FY2026

$2.25

+2.3% vs est.

Revenue

Q2 FY2026

$1.70B

+11.0% YoY

+0.0% vs est.

Operating margin

Q2 FY2026

18.5%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.70B	$1.54B	+10.6%	$1.65B	+3.1%
EPS	$2.25	$2.00	+12.5%	$1.86	+21.0%
Operating margin	18.5%	20.2%	-170bps	17.5%	+100bps

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$1.680 billion - $1.710 billion	$1.7001 billion	in-line	Met
Reported Revenue Growth	Q2 FY2026	9.3% to 11.3%	11%	+0.7pts above the high end	Beat
Adjusted EPS	Q2 FY2026	$2.15 - $2.25	$2.25	at the high end of guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q3 FY2026	$1.680 billion - $1.710 billion	+9.1% to +11.0%
Reported Revenue Growth	Q3 FY2026	8.7% to 10.7%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Adjusted EPS	FY 2026	$8.34 - $8.74	$8.39 - $8.69	-$0.05 (midpoint unchanged at $8.54, but range narrowed with top end cut by $0.05)	Lowered
Reported Revenue Growth	FY 2026	10.0% to 12.0%	10.5% to 11.6%	-0.4pts (range narrowed and high end cut from 12.0% to 11.6%)	Lowered
Local Currency Growth	FY 2026	9.1% to 11.1%	9.8% to 10.9%	-0.2pts (range narrowed; high end cut from 11.1% to 10.9%, low end improved from 9.1% to 9.8%)	Lowered
Organic Local Currency Growth	FY 2026	9.0% to 11.0%	9.7% to 10.8%	-0.2pts (range narrowed; high end cut from 11.0% to 10.8%, low end improved from 9.0% to 9.7%)	Lowered
Revenue	FY 2026	$6.685 billion - $6.805 billion	$6.710 billion - $6.780 billion	-$0.025B (range narrowed and high end cut from $6.805B to $6.780B; low end improved from $6.685B to $6.710B)	Lowered

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Workforce Solutions	$0.705B	$0.662B	+6.6%
U.S. Information Solutions (USIS)	$0.612B	—	+17.0%
International	$0.383B	$0.353B	+8.4%
Verification Services	$0.608B	$0.567B	+7.1%
Online Information Solutions	$0.545B	$0.458B	+19.1%
U.S. Mortgage Revenue Growth	25%	14%	—
USIS Mortgage Revenue Growth	40%	20%	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Latin America	$0.109B	$0.1B	+9.4%
Europe	$0.101B	$0.099B	+1.9%
Asia Pacific	$0.1B	$0.085B	+16.9%
New Product Vitality Index	16%	14%	—
Workforce Solutions Operating Margin	44.9%	—	—
USIS Operating Margin	22.5%	—	—
International Operating Margin	12.1%	—	—
Adjusted EBITDA Margin	32.5%	32.5%	—
Local Currency Revenue Growth	10%	—	—

Management tone

Cloud penance → mortgage caution → execution proof → holding the macro line → structural conservatism with M&A optionality

Management's Q1 language — "absent Iran uncertainty, we would have raised our full year guidance" — set an implicit test for Q2: if uncertainty eased, the constant-currency FY midpoint should move up; if it persisted, the guide should hold. What happened instead is a third path: management narrowed the range on both ends, trimming the high end while raising the low end and holding the midpoint. That is a different posture than either "conditions eased, we're raising" or "conditions worsened, we're cutting" — it is a deliberate compression that removes the upside scenario from the FY frame. The read: the operational catch-up that Q1's language telegraphed is now being absorbed as base-case rather than flowed to the top of the range.

The AI framing has stepped up from Q1's "AI-first operating model" positioning to a specific dollar commitment: doubling the AI-driven cost reduction goal to $150M cumulative from 2026 through 2028 (from $75M earlier this year). "Equifax is fundamentally a different company on how we go to market from Technology to Data & Analytics, EFX.AI capabilities, product focus, and AI-driven Operations." What's notable is that this doubling did not lift the FY EPS high end — it went into offsetting other pressures. The AI cost story is now a real number, but it's being consumed by whatever is dragging on the guide, not creating headline upside.

The capital allocation posture firmed decisively with a named deal: Equifax signed a definitive agreement to acquire Círculo de Crédito, the fastest growing credit bureau in Mexico, for a $750M enterprise value, expected to close in Q4 2026. Management framed it as fitting "perfectly in our balanced capital allocation framework, with our focus on highly accretive bolt-on acquisitions." This is a meaningful International-segment expansion that should reshape the Latin America line in FY2027 modeling. The tone shift over the arc — cloud completion → mortgage de-risk → offensive growth → macro caution → structural conservatism with M&A optionality — has moved from confident expansion to defensive execution with balance-sheet levers now being pulled.

Workforce Solutions deceleration to +7% is the tonal risk management does not appear to have addressed head-on in the press release framing. After Q1's +10%, the drop to +7% is exactly the "flat sequential government would test whether non-government EWS can carry the segment" concern from Q1's watch list — and the answer is: non-government EWS did not fully carry it, even with high double-digit growth in Talent Solutions and Consumer Lending inside Verification Services.

Answers to last quarter's watch list

Whether Q2 FY2026 revenue lands above the $1.710B high end — Landed at $1.7001B, the midpoint of the guide, not above the high end. Q1 beat the high end by $22M; Q2 did not. This is a meaningful downshift in the beat pattern and is consistent with the FY high-end cut.

Resolved negatively

U.S. mortgage revenue growth trajectory — sustain 25%+ or step down toward FY average — U.S. mortgage revenue grew +25% consolidated in Q2 (USIS Mortgage +40%, Workforce Solutions Mortgage +8%), down from Q1's higher run rate. This lands right at the 25% floor of the watch condition and remains above the FY "over 20%" guide, but the deceleration is unambiguous and the H2 step-down management flagged in Q1 is now visible.

Continue monitoring

The first named VantageScore production customer or signed conversion contract — No named customer disclosed in the press release, and the FY guide still assumes 100% FICO scores. The FHFA activation gate remains unresolved.

Continue monitoring

Adjusted EBITDA margin trajectory toward the +75bps ex-FICO FY expansion target — Q2 adjusted EBITDA margin printed 32.5%, flat YoY, and rebuilt sequentially from Q1's 29.0% — the required build for the FY expansion path. Half-year math still requires H2 to sustain 33%+ to hit the FY framework. Status: Resolved positively (for now)

Workforce Solutions sustaining +10% or higher with Verification Services at prior-quarter rates — Workforce Solutions decelerated to +7% and Verification Services came in at +7%. The tough government comp management flagged in Q1 materialized, and non-government EWS did not fully offset despite high double-digit growth in Talent Solutions and Consumer Lending.

Resolved negatively

USIS Diversified Markets reaccelerating from +3% toward mid-single-digit guide and 6–8% LT band — Diversified Markets accelerated over 300bps sequentially to +6%, landing in the mid-single-digit target and the low end of the 6–8% LT band.

Resolved positively

International margin compression at 9.5% — persist below 10%? — International margin recovered to 12.1% in Q2 from Q1's 9.5%, well above the 10% threshold and consistent with the seasonal margin build.

Resolved positively

Whether FY constant-currency revenue and EPS guidance moves up at Q2 — No. The constant-currency FY midpoints held flat: local-currency growth midpoint unchanged, organic local-currency midpoint unchanged, and the FY EPS midpoint unchanged at $8.54. The high end was cut on every line. This is the most important answer on the list: after two operational-beat quarters, the constant-currency FY frame has not moved up.

Resolved negatively

What to watch into next quarter

Whether Q3 FY2026 revenue lands above the $1.710B high end — the guide implies +9.1% to +11.0% YoY vs Q3 FY2025's $1.54B base; a mid-range or below-midpoint print would confirm the growth rate is decelerating toward the FY guide floor and validate the high-end cuts. An above-high-end print would be the first evidence in two quarters that the constant-currency FY midpoint has upside.

Workforce Solutions reaccelerating from +7% — the Q2 deceleration is the single most negative segment signal in this print. Watch whether Q3 EWS returns to the +9–10% band as the government comp normalizes, and whether the ~$300M in H1 government contract wins begin to flow (management said these principally benefit 2027 and beyond).

U.S. mortgage revenue growth relative to the "over 20%" FY guide — Q2 at +25% is decelerating; if Q3 prints below +20%, the FY mortgage guide is at risk and the USIS +17% carry story compresses.

The FY2026 constant-currency midpoint at Q3 — after two consecutive quarters of holding the midpoint flat despite operational beats, a Q3 raise would be the first genuine upward revision of the year; another flat hold would confirm structural conservatism.

USIS Diversified Markets sustaining the +6% reacceleration — Q2 was the first proof point that the non-mortgage USIS line has turned; watch whether Q3 holds mid-single digits or steps back toward the Q1 +3% level.

The AI-driven cost savings pace — $150M cumulative 2026–2028 implies roughly $50M annualized; watch for Q3 disclosure of realized savings vs plan, since the doubled goal did not lift the FY EPS high end and needs to prove out.

Círculo de Crédito closing and integration — Q4 2026 close means the deal starts contributing in FY2027; watch the 8-K and 10-Q for accretion timing, financing structure, and any updates to the International segment framework.

Sources

Equifax Q2 2026 press release / 8-K exhibit, filed July 21, 2026 — https://www.sec.gov/Archives/edgar/data/33185/000003318526000024/exhibit99120260630.htm
Equifax Q1 2026 press release / 8-K exhibit, filed April 21, 2026 — https://www.sec.gov/Archives/edgar/data/33185/000003318526000016/exhibit99120260331.htm
Equifax Q4 2025 press release / 8-K exhibit, filed February 4, 2026 — https://www.sec.gov/Archives/edgar/data/33185/000003318526000004/a2025q48-kexhibit991.htm

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