Equifax Surpasses Q1 Expectations with Strong Revenue Growth and Record EBITDA Margin Expansion
Equifax, a leading global information solutions company, has reported strong first-quarter 2026 results, exceeding expectations across key financial metrics. The company's revenue reached $1.649 billion, marking a 14% increase year-over-year, with organic constant currency growth of 13%. This outperformance was primarily driven by a 38% surge in U.S. mortgage revenue, surpassing the midpoint of Equifax's February guidance.
Mark Begor, Chief Executive Officer, attributed this impressive performance to stronger mortgage activity mid-quarter, despite rates increasing due to the Iran conflict. The company also cited its success with new wins in pre-approval products, driven by the TWN Indicator solution, as a key factor contributing to the revenue growth in USIS mortgage.
Equifax's diversified markets segment, which includes Workforce Solutions, experienced organic constant dollar revenue growth of nearly 6%, consistent with the company's guidance. The strong execution in this area was a significant contributor to the overall performance.
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter reached $477 million, representing a 13% increase year-over-year, with an EBITDA margin excluding FICO of 31.2%. This marks a significant expansion of 80 basis points from last year's EBITDA margins, surpassing both Equifax's target for the year and its long-term framework.
Trevor Burns, Senior Vice President of Investor Relations, emphasized that the strong EBITDA margins were driven by operating leverage, mortgage flow-through, and AI-driven cost productivity. The company reported an EBITDA margin of 29% for the quarter.
Equifax's EPS (Earnings Per Share) also experienced a significant increase, rising to $1.86 per share, a 22% year-over-year growth and exceeding the midpoint of Equifax's February guide by $0.18. The company attributed this performance to strong operating leverage and AI-driven cost productivity.
In addition to its financial achievements, Equifax has continued to focus on shareholder returns. During the quarter, the company returned $327 million to shareholders through a combination of share repurchases and dividend payments. This includes repurchasing 1.3 million shares, or about 1% of shares outstanding, for $260 million.
Mark Begor also highlighted the company's efforts to drive shareholder value through its increasing quarterly dividend. Last month, Equifax increased its quarterly dividend by 12%, setting it at 56 cents per share. This move reflects the company's confidence in its financial performance and commitment to delivering value to shareholders.
With these strong Q1 results, Equifax has demonstrated its ability to execute on its strategic plan and deliver exceptional growth across key business areas. As the company continues to focus on innovation, customer satisfaction, and operational excellence, investors can expect continued momentum in the coming quarters.
