AI Takeaway
Equifax (EFX) delivered strong Q1 FY2026 results with revenue of $1.65B (+14.3% YoY) and net income of $171.5M (+28.9% YoY), driven by operating leverage and EPS growth of 34%, though liquidity remains tight with a current ratio below 1.
Revenue
$1.65B
++14.35% YoY
EPS (Basic)
$1.43
++33.64% YoY
Operating Income
$287.7M
++22.01% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
EFX generated $1.65B in revenue in Q1 FY2026, up 14.3% from $1.44B in the prior-year period, reflecting broad-based demand for its data and analytics solutions. This growth rate significantly outpaces the prior year's base, suggesting continued momentum in core business segments.
Source: Source: 10-Q Income Statement
Operating income grew 22.0% YoY to $287.7M, outpacing revenue growth of 14.3%, which expanded the operating margin from 16.4% to 17.4%. This indicates EFX is achieving meaningful operating leverage as revenue scales faster than costs.
Source: Source: 10-Q Income Statement
SG&A expenses increased 9.6% YoY to $411.0M, growing at a slower pace than revenue (+14.3%), which contributed to the margin improvement. Disciplined cost management appears to be a key driver of profitability gains.
Source: Source: 10-Q Income Statement
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Upgrade to unlockEFX's current ratio stands at only 0.61, meaning current liabilities of $2.45B significantly exceed current assets of $1.49B. Current liabilities surged 41.6% YoY, which could create near-term cash flow pressure if operating conditions deteriorate. This is a notable concern for short-term financial flexibility.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $1.86 versus the $1.72 analyst consensus — a +8.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.65B | $1.44B | +14.35% |
Operating Income | $287.7M | $235.8M | +22.01% |
Net Income | $171.5M | $133.1M | +28.85% |
EPS (Basic) | $1.43 | $1.07 | +33.64% |
EPS (Diluted) | $1.42 | $1.06 | +33.96% |
SG&A Expense | $411M | $374.9M | +9.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.94B | $11.85B | +0.74% |
Current Assets | $1.49B | $1.48B | +0.75% |
Total Liabilities | $7.26B | $6.74B | +7.67% |
Current Liabilities | $2.45B | $1.73B | +41.59% |
Stockholders' Equity | $4.54B | $4.98B | -8.84% |
Cash & Equivalents | $183.4M | $195.2M | -6.05% |
Long-Term Debt | $4.06B | $4.32B | -6.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $241.9M | $223.9M | +8.04% |
Investing Cash Flow | $-120.4M | $-107.2M | -12.31% |
Financing Cash Flow | $-117.7M | $-95.8M | -22.86% |
Share Buybacks | $260M | $0 | — |
D&A | $184.8M | $176.4M | +4.76% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.4% | 16.4% | +1.10% |
Net Margin | 10.4% | — | — |
ROE | 3.8% | — | — |
ROA | 1.4% | — | — |
Current Ratio | $0.607 | — | — |
Debt to Equity | $1.599 | — | — |
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Equifax delivered a strong Q1 FY2026, with revenue of $1.65B (+14.3% YoY), net income of $171.5M (+28.9% YoY), and diluted EPS of $1.42 (+34.0% YoY). Operating margin also expanded to 17.4% from 16.4% in the prior year, reflecting improved cost efficiency.
EFX's 14.3% revenue growth to $1.65B in Q1 FY2026 was supported by broad demand for its data and analytics services, with SG&A growing at a slower 9.6% pace, suggesting disciplined cost management amplified the revenue gains. The company also benefited from operating leverage as fixed costs were spread over a larger revenue base.
The most pressing near-term risk is EFX's tight liquidity, with a current ratio of just 0.61 and current liabilities of $2.45B far exceeding current assets of $1.49B. Additionally, the debt-to-equity ratio of 1.60 and declining cash reserves of $183.4M highlight elevated financial leverage that could become a concern if revenue growth slows.
Yes, EFX repurchased $260M in shares during Q1 FY2026, compared to zero buybacks in the same period last year. This contributed to the 34.0% jump in diluted EPS by reducing the share count, though it also contributed to the 8.8% decline in stockholders' equity.
EFX's profitability metrics are improving, with net income up 28.9% and operating margins expanding, but its balance sheet shows some stress: the current ratio is a low 0.61, cash stands at only $183.4M, and total liabilities grew 7.7% YoY to $7.26B. Long-term debt of $4.06B remains significant, though it declined 6.2% YoY.