Equifax Inc.

Equifax reported second-quarter revenue of $1.7 billion, up 11% on a reported basis and 10% in constant currency, and EPS of $2.25, up 13%. EBITDA was $552 million, with reported EBITDA margin of 32.5% and EBITDA margin excluding FICO of almost 35%, up 120 basis points year over year. Management said revenue was $5 million above the April guidance midpoint, and ex-FICO mortgage royalties revenue was up about 7%. For 3Q 2026, revenue is guided to $1.68 billion-$1.71 billion, EPS to $2.15-$2.25, EBITDA to $547 million-$564 million, and EBITDA margin to about 32.8% at the midpoint. For full-year 2026, reported guidance is unchanged from April, while constant-currency guidance was raised; excluding FICO mortgage royalties, revenue growth is expected to be 7.2%-8.4% and EBITDA margins are expected to expand by 75 basis points. Management still expects over $1 billion of free cash flow in 2026, cash conversion of at least 100%, and about $1.5 billion of capital available for M&A and shareholder returns while keeping leverage under 3x EBITDA.

Mark Begor framed the quarter as evidence that Equifax’s cloud, proprietary data, and AI strategy are driving both growth and efficiency. He emphasized strong execution in diversified markets, a better-than-expected government pipeline, and early momentum from new AI-enabled products such as Ignite AI Advisor and Equifax IQ. His tone was upbeat and confident, especially around the company’s ability to convert AI adoption into margin expansion and to set up 2027 growth.

John Gamble focused on the framework around guidance, saying full-year 2026 reported guidance is unchanged from April, but constant-currency guidance was raised because of the Q2 revenue beat and FX moved against results. He reiterated full-year expectations for over $1 billion of free cash flow, at least 100% cash conversion, and about $1.5 billion of capital capacity in 2026 while keeping leverage under 3x EBITDA. He also confirmed 3Q guidance of $1.68 billion-$1.71 billion revenue, $2.15-$2.25 EPS, and $547 million-$564 million EBITDA, and noted second-half buybacks would continue but at a slower pace than the $560 million and 3.1 million shares repurchased in the first half.

Analysts focused on government contract conversion, whether the recent about $300 million of signings included churn, and how quickly the pipeline would show up in revenue; management said the $100 million of new business is additive and mainly benefits 2027, while the $200 million is renewals, and second-half growth should resume as some deals close and more flow through next year. Questions on VantageScore centered on whether the 1,200 lenders pulling free scores are merely testing; management said they are testing systems and workflows, and Equifax expects adoption to keep rising as more lenders are approved. On mortgage, analysts pressed on weaker growth and the economics of FICO’s success-fee approach; management said higher rates and tougher comps reduced growth, and it sees little traction for the higher consumer fee concept.