Credit reporting giant Equifax (NYSE: EFX) announced better-than-expected revenue in Q4 CY2025, with sales up 9.2% year on year to $1.55 billion. Guidance for next quarter’s revenue was optimistic at $1.61 billion at the midpoint, 2.5% above analysts’ estimates. Its non-GAAP profit of $2.09 per share was 1.8% above analysts’ consensus estimates.

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"Equifax delivered strong fourth quarter revenue of $1.551 billion, up 9% on both a reported and local currency basis, that was $30 million above the midpoint of our October guidance. This was led by strong 20% U.S. Mortgage revenue growth, strong Workforce Solutions Government revenue growth, and continued momentum in New Product Innovation with a Vitality Index of 17% despite headwinds from the U.S. Mortgage and Hiring markets. Workforce Solutions delivered 9% revenue growth, driven by Verification Services revenue growth of 10% led by Diversified Markets revenue growth of 11% from strong low double digit growth in Government and mid double digit growth in Consumer Lending businesses. USIS delivered strong revenue growth of 12%, well above their 6 to 8% Long Term Financial Framework. USIS revenue growth was led by very strong 33% Mortgage revenue growth and Diversified Markets revenue growth of 5%. International delivered 5% local currency revenue growth led by Latin America. We were pleased with the strong Equifax results in a challenging market environment and momentum into 2026 from our fourth quarter results," said Mark W. Begor, Equifax Chief Executive Officer.

Company Overview

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE: EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $6.07 billion in revenue over the past 12 months, Equifax is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.

As you can see below, Equifax grew its sales at a solid 8% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Equifax’s annualized revenue growth of 7.4% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.

We can better understand the company’s revenue dynamics by analyzing its most important segments, Workforce Solutions and U.S. Information Solutions, which are 42.1% and 34% of revenue. Over the last two years, Equifax’s Workforce Solutions revenue (HR services) averaged 5.6% year-on-year growth while its U.S. Information Solutions revenue (credit services) averaged 9.9% growth.

This quarter, Equifax reported year-on-year revenue growth of 9.2%, and its $1.55 billion of revenue exceeded Wall Street’s estimates by 1.4%. Company management is currently guiding for a 11.8% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 8.6% over the next 12 months, similar to its two-year rate. This projection is commendable and indicates its newer products and services will catalyze better top-line performance.

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Operating Margin

Equifax has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average operating margin of 19.5%.

Analyzing the trend in its profitability, Equifax’s operating margin decreased by 5.1 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, Equifax generated an operating margin profit margin of 18.3%, down 2 percentage points year on year. This reduction is quite minuscule and indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Equifax’s EPS grew at a weak 2.2% compounded annual growth rate over the last five years, lower than its 8% annualized revenue growth. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.

We can take a deeper look into Equifax’s earnings to better understand the drivers of its performance. As we mentioned earlier, Equifax’s operating margin declined by 5.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Equifax, its two-year annual EPS growth of 6.8% was higher than its five-year trend. Accelerating earnings growth is almost always an encouraging data point.

In Q4, Equifax reported adjusted EPS of $2.09, down from $2.12 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 1.8%. Over the next 12 months, Wall Street expects Equifax’s full-year EPS of $7.66 to grow 12.5%.

Key Takeaways from Equifax’s Q4 Results

It was great to see Equifax’s revenue guidance for next quarter top analysts’ expectations. We were also glad its full-year revenue guidance exceeded Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed and its full-year EPS guidance fell short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock traded up 1.3% to $177.29 immediately after reporting.

Big picture, is Equifax a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).