Equifax Q3 Earnings & Revenues Surpass Estimates, Increase Y/Y

Equifax Inc. EFX has reported impressive third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 7.2% on a year-over-year basis.

Equifax shares have declined 16.2% in a year compared with the 31.4% fall of the industry and the 17.4% rise of the Zacks S&P 500 composite.

Segmental Information on EFX

Revenues in the Workforce Solutions segment totaled $649.4 million, increasing 5% from the year-ago quarter and surpassing our estimate of $641.7 million. Within the segment, Verification Services’ revenues were $553.6 million, up 5% from the year-ago quarter. Employer Services’ revenues of $95.8 million rose 1% on a year-over-year basis.

The USIS segment’s revenues were $530.2 million, rising 11% from the year-ago quarter and beating our estimated $509.6 million. Within the segment, Online Information Solutions’ revenues were $467.5 million, up 12% year over year. Financial Marketing Services’ revenues were $62.7 million, increasing 9% from the year-ago quarter.

Revenues in the International division amounted to $365.5 million, up 6% and 7% year over year on a reported and local-currency basis, respectively. The metric missed our projection of $368.6 million.

Latin America’s revenues of $102.1 million hiked 6% from the year-ago quarter on a reported basis and 9% on a local-currency basis. Revenues from Europe amounted to $102.3 million, up 8% year over year on a reported and 4% on a local-currency basis. Revenues from the Asia Pacific were $90.1 million, increasing 2% from the year-ago quarter on a reported basis and 4% on a local-currency basis. Canada’s revenues of $70.8 million rose 9% from the year-ago quarter on a reported basis and 11% on a local-currency basis.

Equifax’s Operating Results

Adjusted EBITDA in the third quarter of 2025 amounted to $504.8 million, implying a 7% increase on a year-over-year basis. The adjusted EBITDA margin was 32.7%, flat with the year-ago quarter.

Workforce Solutions’ adjusted EBITDA margin was 51.2% compared with 51.6% in the year-ago quarter. The adjusted EBITDA margin for the USIS division was 35.2% compared with 33.9% in the third quarter of 2024. The adjusted EBITDA margin for the international segment was 31.3% in comparison with 27.7% in the year-ago quarter.

EFX’s Balance Sheet & Cash Flow

Equifax exited the third quarter with cash and cash equivalents of $189 million compared with $195.2 million at the end of the second quarter of 2025. The company has a long-term debt of $4.1 billion compared with $4.3 billion in the preceding quarter.

Cash generated from operating activities amounted to $559.9 million, whereas capital expenditure totaled $122 million. The company distributed $61.5 million as dividends in the quarter.

Equifax’s Q4 & 2025 Outlook

For the fourth quarter of 2025, the company expects revenues to $1.506-$1.536 billion. The mid-point ($1.521 billion) of the guided range is marginally higher than the Zacks Consensus Estimate of $1.52 billion. EFX anticipates an adjusted EPS of $1.98-$2.08. The guided range is higher than the Zacks Consensus Estimate for earnings of $1.93 per share.

For 2025, Equifax has raised its revenue guidance to $6.03-$6.06 billion from the preceding quarter’s view of $5.97-$6.04 billion. The guided range is higher than the Zacks Consensus Estimate of $6.02 billion. The company hiked its adjusted EPS to $7.55-$7.65 from the preceding quarter’s view of $7.33-$7.63. The Zacks Consensus Estimate for earnings is set at $7.55 per share.

Equifax carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Ranked (Strong Buy) stocks here.

Earnings Snapshot

Paychex, Inc. PAYX reported impressive first-quarter fiscal 2026 results.

PAYX’s fiscal first-quarter earnings of $1.22 per share beat the Zacks Consensus Estimate by a slight margin and increased 5.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by a slight margin and gained 16.8% from the year-ago quarter.

FactSet FDS reported mixed results for the fourth-quarter fiscal 2025.

FDS’s earnings per share of $4.05 missed the consensus mark by 2.4% but increased 8.3% from the year-ago quarter. Revenues of $596.9 million beat the Zacks Consensus Estimate by a slight margin and 6.2% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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