Equifax Inc. Q1 FY2026 earnings call

Mark Vigor discussed that Equifax had very strong first quarter results with revenue outperformance in U.S. mortgage, driven by new products and twin indicator solutions. The team is executing well against EFX 2028 strategic priorities, leveraging EFX.AI-based solutions and cloud-native infrastructure. John Gamble provided details on 2026 and Q2 2026 guidance, including revenue and EPS expectations, and discussed various business segments' performance and initiatives.

Equifax delivered strong first quarter results with reported revenue of $1.649 billion, up 14% from prior year. On an organic constant currency basis, revenue growth was 13%. Ex-FICO, revenue growth was about 10%. Workforce solutions revenue was up over 10%, Verifier revenue was up a strong 14% with diversified markets revenue growth of 14%. USIS revenue was up a very strong 21% and 8% excluding FICO driven by significant mortgage outperformance. International revenue was up 4% in constant currency. First quarter EBITDA of $477 million was up 13%, with workforce solutions EBITDA margins of 52.3% being very strong, USIS EBITDA margins ex FICO were 37.9% and international EBITDA margins were 25%.

Equifax is maintaining its 2026 guidance despite uncertainty from the Iran conflict. Reported revenue midpoint was increased by $25 million due to FX. Diversified markets revenue is expected to be up high single digits, U.S. mortgage revenue over 20%. EWS is expected to have revenue growth of high single digits and EBITDA margins flat. USIS and international business unit guidance remains unchanged. Q2 2026 total Equifax revenue is expected to be between $1.680 and $1.710 billion, EPS 215 to 225 per share.

Risks include economic uncertainty from the Iran conflict impacting mortgage and other transactional activity, timing issues in government contract closures and activations, competition in verification services, and potential impacts of AI on manual verification processes.

Includes exchanges from analysts on topics such as government revenue timing, UCIS diversified markets performance, EWS mortgage outperformance, VantageScore adoption, AI impact, and mortgage hard vs. soft inquiries. For example, Jeff Mueller asked about government revenue timing and UCIS diversified markets performance, and the response discussed government pipeline strength and Q2 comp issues; Andrew Steinerman inquired about EWS mortgage revenue outperformance, with the response highlighting strong first quarter performance and expectations; Tony Kaplan asked about CMS competition and VantageScore reception, with responses on product differentiation and VantageScore adoption progress.