Equifax shares rise 11.3% after third-quarter results despite cut to annual guidance
Key Facts
Equifax on October 20, 2026 reported third-quarter adjusted earnings per share of $2.26, in results that combined growth in U.S. mortgage-related businesses with a cut to annual guidance due to weakness in that market. The company reported revenue of $1.693 billion for the quarter, according to its earnings release, which detailed the performance of its verification, U.S. information and international operations. On a GAAP basis, the company posted diluted earnings per share of $1.79, according to its quarterly filing, compared with the adjusted measure in its release. Net income attributable to Equifax totaled $211.7 million for the same period, according to the filing. The results announcement included an update to its current-year outlook, as U.S. mortgage weakness continued to weigh on the company's business forecasts.
Equifax's U.S. mortgage revenue grew 15% from the same quarter a year earlier despite market weakness, according to the company's release. Within U.S. Information Solutions, mortgage revenue rose 28% year on year, outpacing growth in that revenue across the company's combined businesses. Equifax attributed mortgage revenue growth in U.S. Information Solutions primarily to product pricing, according to the explanation in its quarterly filing. The filing said the increase in that revenue was "primarily due to product pricing," describing the growth driver within the business. Meanwhile, reported diversified markets revenue rose 8% from the corresponding period, with growth across business units, according to the release.
Equifax's Workforce Solutions segment recorded third-quarter revenue of $693.9 million, according to the operating details in its earnings release. The segment's Verification Services business accounted for the bulk of its revenue during the period, with a smaller contribution from Employer Services. Verification Services revenue totaled $603.2 million, within the company's reported Workforce Solutions total for the quarter. Employer Services recorded revenue of $90.7 million for the same period, according to the release. Segment revenue was thus split between Verification Services and Employer Services, with the former accounting for a clear majority of the quarterly business results announced by Equifax.
U.S. Information Solutions, which includes the mortgage business benefiting from product pricing, recorded total third-quarter revenue of $599.1 million. The segment's revenue was below that of Workforce Solutions and above that of the International segment, according to Equifax's reported quarterly figures. International revenue totaled $399.5 million for the period, according to the company's release on the performance of its operations outside the U.S. market. The segment's revenue grew 7% in local currencies from the same quarter a year earlier, according to the measure included in the company's results. Equifax's revenue total thus included contributions from Workforce Solutions, U.S. Information Solutions and International, alongside growth in diversified markets revenue across business units.
On operating profitability, the adjusted earnings before interest, taxes, depreciation and amortization margin was 33.1% in the third quarter, according to Equifax's release. In business development, the company said its new product vitality index exceeded 17%, reaching a record level during the period covered by the earnings announcement. The company returned $158 million in cash to shareholders during the quarter through share repurchases and dividends, according to the same release. In the market, the Associated Press reported an 11.3% rise in Equifax shares in its coverage of the earnings announcement session, which also included the cut to annual guidance. The news agency described the stock's rise as "among the market's biggest gains," as the company announced its quarterly earnings and updated its outlook for the rest of the year.
For the current year, Equifax lowered the midpoint of its annual revenue guidance to $6.661 billion, attributing the revision to weakness in the U.S. mortgage market. The outlook update also included a reduction in the midpoint of adjusted earnings per share guidance, according to the earnings release, which set out the company's revised annual estimates. The midpoint of its annual adjusted earnings per share forecast is now $8.50, following a reduction of $0.04 from previous guidance. With that revision, the midpoint of the adjusted earnings forecast remained within the guidance range the company had previously announced, according to the release. On expansion, Equifax expects to close its acquisition of Circulo de Credito in the fourth quarter of 2026, according to the timing in its quarterly filing.