Equifax shares fall after weaker outlook overshadows second-quarter earnings beat (EFX)

Strong quarterly results fail to reassure investors

Equifax Inc. (NYSE:EFX) reported second-quarter results that topped earnings expectations, but the company’s weaker-than-expected guidance for the remainder of 2026 weighed on investor sentiment, sending the shares down 6.93% in pre-market trading.

The data and analytics provider posted adjusted earnings per share of $2.25, exceeding the consensus forecast of $2.20. Revenue totaled $1.7 billion, matching analyst estimates and rising 11% from the same period a year earlier.

Guidance comes in below market expectations

Despite the solid quarterly performance, investors focused on management’s cautious outlook.

For the third quarter, Equifax forecast revenue of between $1.68 billion and $1.71 billion, with the midpoint of $1.695 billion below the analyst consensus estimate of $1.71 billion.

The company also projected adjusted third-quarter earnings per share of $2.15 to $2.25. The midpoint of $2.20 fell short of Wall Street’s expectation of $2.27.

Equifax’s full-year outlook also disappointed the market. The company expects 2026 revenue of $6.71 billion to $6.78 billion, well below the analyst consensus of $7.39 billion. The midpoint of the guidance range, $6.745 billion, represents a significant gap from market expectations.

Adjusted earnings per share for the full year are now projected at $8.39 to $8.69, with the midpoint of $8.54 also trailing the consensus estimate of $8.60.

Core businesses continue to deliver growth

“Equifax delivered a strong second quarter performance executing on our EFX2028 Strategic Priorities with reported revenue of $1.700 billion, up 11% on a reported basis, with 10% local currency revenue growth,” said Mark W. Begor, Chief Executive Officer.

Within the company’s operating segments, Workforce Solutions increased revenue 7% to $705.4 million, while U.S. Information Solutions posted 17% growth to $611.6 million.

International revenue rose 8% on a reported basis to $383.1 million, or 4% in local currency, while U.S. Mortgage revenue advanced 25% year over year.

Acquisition and AI initiatives remain key priorities

Equifax also announced a definitive agreement to acquire Mexican credit bureau Círculo de Crédito for $750 million, with the transaction expected to close during the fourth quarter.

The company said it has doubled its AI-driven cost savings target to $150 million for the 2026-2028 period.

During the quarter, Equifax returned $366 million to shareholders through a combination of share repurchases and dividend payments.

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