Equifax reported a Q2 beat with 11% revenue growth and 13% EPS growth, driven by strong diversified markets and AI-driven margin expansion. Management raised constant currency full-year guidance slightly, highlighted $300M in government contract wins (benefiting 2027), doubled AI cost savings target to $150M, and announced the acquisition of Mexico's Circulo de Credito. VantageScore adoption accelerated in mortgage, while FICO's new pricing model gained no traction. Q2 revenue $1.7B (+11% reported, +10% constant currency); EPS $2.25 (+13%) above guidance.
Equifax reported a Q2 beat with 11% revenue growth and 13% EPS growth, driven by strong diversified markets and AI-driven margin expansion. Management raised constant currency full-year guidance slightly, highlighted $300M in government contract wins (benefiting 2027), doubled AI cost savings target to $150M, and announced the acquisition of Mexico's Circulo de Credito. VantageScore adoption accelerated in mortgage, while FICO's new pricing model gained no traction. Q2 revenue $1.7B (+11% reported, +10% constant currency); EPS $2.25 (+13%) above guidance.
Management said they accelerated AI deployment, doubling the AI for EFX productivity goal from $75 million to $150 million from 2026 to 2028, and launched 54 new products with AI capabilities embedded in the product architecture in the first half, driving a 16% new product…
Management's tone was confident, driven by strong Q2 results with 10% revenue growth, 120 bps EBITDA margin expansion, and a doubling of AI productivity savings expectations, reflecting broad-based momentum and execution against strategic priorities.
Full-year reported guidance unchanged; constant currency raised by Q2 beat. Q3 guidance: revenue $1.68-1.71B, EPS $2.15-2.25.
$300M in government contract signings. Management's tone was confident, driven by strong Q2 results with 10% revenue growth, 120 bps EBITDA margin expansion, and a doubling of AI productivity savings expectations, reflecting broad-based momentum and execution against strategic…
Management said they accelerated AI deployment, doubling the AI for EFX productivity goal from $75 million to $150 million from 2026 to 2028, and launched 54 new products with AI capabilities embedded in the product architecture in the first half, driving a 16% new product vitality index.
$300M in government contract signings. Management's tone was confident, driven by strong Q2 results with 10% revenue growth, 120 bps EBITDA margin expansion, and a doubling of AI productivity savings expectations, reflecting broad-based momentum and execution against strategic priorities.
Management's tone was confident, driven by strong Q2 results with 10% revenue growth, 120 bps EBITDA margin expansion, and a doubling of AI productivity savings expectations, reflecting broad-based momentum and execution against strategic priorities.
“Our second quarter Vantage Score volume is up almost 3x compared to the first quarter... about 100 mortgage lenders ... who have moved to exclusively utilizing VantageScore at our $1 price point.”
“We now expect run rate spending savings from these AI for EFX efforts to be about $150 million from 2026 to 2028, which is double the $75 million of savings we discussed with you in February.”
“signing principally state government contracts that bring the total in the last four months to about $300 million, with about $100 million of the new business that will principally benefit 2027 and $200 million of contract renewals.”
“We don't hear or see any traction on that. The idea of charging that consumer $66 for a credit score... just doesn't make a lot of sense”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q3 | $2.15–$2.25 | $2.20 | MAINTAINED |
| Revenue | FY2026 Q3 | $1.68B–$1.71B | $1.695B | MAINTAINED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q1 | EPS | FY2026 Q2 | $2.15–$2.25 | $2.25 | Met / beat |
| FY2026 Q1 | Revenue | FY2026 Q2 | $1.68B–$1.71B | $1.7001B | Met / beat |
| FY2025 Q3 | EPS | FY2025 Q4 | $1.98–$2.08 | $2.09 | Met / beat |
| FY2025 Q3 | Op margin | FY2025 Q4 | 33%–33.3% | 18.33% | Missed |
Equifax sells bureau data to Experian and TransUnion; weakness there may indicate shifting demand from peers.
“The only place we saw some weakness is in our sales where we actually sell to our two competitors, our D2C business”
Hey, Kyle. Hey, good morning, guys. Thank you for taking the questions. I want to start off on the consumer lending business. Seems like that was a notable area of strength you guys called out and good to see the momentum there. I want to see how much of that is either strength with the banks. I know some of the card issuers and stuff have gotten a little more into that versus like are you guys gaining some share in fintech or is it a little bit of both? Just wanted to get more color there.
And with USIS online, I mean, we saw very good performance. The good news is right across the portfolio, right? Very good performance in auto, strong performance online in NFI. Actually, nice performance in telco as well. Good growth there. And we're seeing increasing and improving growth in insurance. The only place we saw some weakness is in our sales where we actually sell to our two competitors, our D2C business. But other than that, we had very strong performance across the board in USIS online.
Equifax dismisses FICO's success fee model, signaling that VantageScore pricing undercuts FICO and that the mortgage industry will likely continue to shift.
“The idea of charging that consumer $66 for a credit score, which is what FICO is proposing with their closed loan pricing, versus a dollar with a Vantage score ... just doesn't make a lot of sense”
VantageScore mortgage volumes surged 3x QoQ to 2.2M transactions, with 100 mortgage lenders now using VantageScore exclusively at $1/score, signaling accelerating adoption despite FICO's retaining dominant share.
FICO's proposed success fee model (charging $66 at loan close) is gaining no traction, with Equifax stating it makes no sense from a regulatory or consumer perspective, reinforcing the $1 VantageScore price as a durable competitive threat.