Why Is Equifax (EFX) Up 8.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Equifax (EFX). Shares have added about 8.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Equifax due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Equifax, Inc. before we dive into how investors and analysts have reacted as of late.

Equifax Beats on Q4 Earnings

Equifax 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.

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. EPS is expected to be $1.63-$1.73.

For 2026, revenues are expected to be $6.66-$6.78 billion. Management provided an EPS outlook of $8.3-$8.7.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -5.31% due to these changes.

VGM Scores

Currently, Equifax has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Equifax has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Equifax belongs to the Zacks Consulting Services industry. Another stock from the same industry, Gartner (IT), has gained 12.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Gartner reported revenues of $1.75 billion in the last reported quarter, representing a year-over-year change of +2.2%. EPS of $3.94 for the same period compares with $5.45 a year ago.

For the current quarter, Gartner is expected to post earnings of $2.99 per share, indicating a change of +0.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Gartner. Also, the stock has a VGM Score of C.

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