Research · Sep 3, 2026
[EFX] Equifax Thesis 2026: Cloud Transformation Completes, Revenue Growth Reaccelerates
Equifax Inc. FY25 revenue $6.07B (+7%); op income $1.10B (+5%); NI $660M (+9%); adjusted EPS $7.65; FCF $1.13B (+39%, above guide). Q4 segment performance — EWS: revenue +9%, EBITDA margins 51.3%, mortgage +10%, Twin active records +11% to 209M; diversified markets +11%. USIS: revenue +12%, EBITDA margins 30.3%, mortgage +33%. International: constant currency revenue +5%, EBITDA margins 31.6%. AI investment + new product innovation: Twin Indicator in mortgage, auto, card markets. Cloud transformation providing competitive advantages + driving operational efficiencies. EWS acquired Vault Verify. Total debt $5.09B (+2%); buyback $928M FY25 (newly active vs $0 FY22-24); dividend $233M (+21%). FY26 guide: total revenue +~10.6% reported / +10% CC; EPS midpoint $8.50 (+11%); EBITDA midpoint $2.122B (+~10%); FCF >$1B; cash conversion ≥100%; Q1 revenue ~$1.612B / EPS $1.68; ex-FICO mortgage royalties revenue mid-single-digit + EBITDA margins +75 bp. Risks: mortgage cycle dependency, FICO royalty dynamics, Twin record competition (TransUnion, Truework, Plaid Income, Argyle), credit bureau competitive landscape (Experian, TransUnion), CFPB regulation, cybersecurity (post-2017 breach), FX, cloud transformation residual.