Equifax Delivers Solid Q3 Results Amidst Challenging Mortgage Market
Equifax, a leading provider of data, analytics, and technology solutions, has reported solid results for the third quarter of 2026, despite facing a challenging mortgage market. In a conference call on October 20, 2026, Trevor Burns, Senior Vice President, Investor Relations, outlined the company's performance.
The company delivered strong diversified markets revenue growth of over 8%, exceeding its mid-single-digit guidance. This growth was driven by improved performance in EWS government, which grew mid-single digits in the quarter. EBITDA margins were up a very strong 130 basis points, excluding FICO, versus last year, due to operating leverage, AI productivity, and good cost management.
Equifax's earnings per share (EPS) grew 11%, reaching $2.26 per share, which was above the high end of its guidance, even with the negative mortgage market impact. The company's revenue of $1.693 billion was up 10% on a reported basis and 9% in constant currency, slightly below the midpoint of its July guidance due to the $20 million of mortgage market impact.
Mark Begor, Chief Executive Officer, highlighted the company's strong performance despite the challenging mortgage market. He noted that U.S. mortgage revenue was up 15% in the quarter and up 1% ex FICO, both below expectations from the higher rate environment in September.
John Gamble, Chief Financial Officer, provided context on the impact of the significant weakening in the U.S. mortgage market on the fourth quarter and in 2027. He noted that the company expects strong free cash flow over $1 billion in 2026 and cash conversion over 100%. With its financial capacity of over $1.5 billion, Equifax can execute the Círculo de Crédito acquisition in the fourth quarter and continue to repurchase shares while maintaining a strong balance sheet.
During the conference call, Mark Begor emphasized the company's focus on delivering long-term value for its shareholders. He highlighted the importance of executing on the company's strategy and leveraging its financial capacity to drive growth and returns.
The company returned $158 million of cash to shareholders in the quarter and about $850 million year-to-date. Share repurchases moderated in the quarter at $92 million, with the Círculo de Crédito deal expected to close in the fourth quarter, bringing year-to-date repurchases to about $650 million on 3.6 million shares or 3% of shares outstanding.
Overall, Equifax's Q3 results demonstrate its ability to deliver solid performance despite a challenging mortgage market. The company's focus on execution and long-term value creation positions it well for continued growth and success in the years ahead.
