AI Takeaway
Equifax delivered 11% revenue growth to $1.7B in Q2 FY2026, led by U.S. Information Solutions and Workforce Solutions, but operating margin fell 1.7 percentage points and net income declined 4% as royalty, litigation, amortization, interest, and tax costs increased. Source: 10-Q Item 2 MD&A, pp.26-28
Revenue
$1.7B
++10.61% YoY
EPS (Basic)
$1.55
++0.65% YoY
Operating Income
$314.2M
++1.09% YoY
Filed · Source: SEC EDGAR 10-Q filing
Equifax (EFX) reported Q2 FY2026 revenue of $1.7B, up 10.6% year over year. The company posted net income of $183.9M, down 3.9% from a year earlier, with diluted EPS of $1.54.
Consolidated revenue increased $163.1M, or 11%, to $1.7B in Q2 FY2026. U.S. Information Solutions (USIS) revenue rose 17% to $611.6M, primarily driven by mortgage-related pricing and volumes plus diversified-markets growth; Workforce Solutions rose 7% to $705.4M, and International rose 8% to $383.1M.
Source: 10-Q Item 2 MD&A, pp.26, 29-31
Operating income increased only 1% to $314.2M because operating expenses grew 13%, faster than revenue. Operating margin declined to 18.5% from 20.2%, primarily due to higher royalty costs, litigation expense, and amortization of capitalized internal-use software costs.
Source: 10-Q Item 2 MD&A, pp.27-28
Net income attributable to Equifax fell $7.4M, or 4%, to $183.9M. Management attributed the decline principally to litigation expense tied to a legal settlement related to a previously disclosed coding issue, net of expected insurance proceeds, and to higher interest expense.
Source: 10-Q Item 2 MD&A, pp.27-28, 31
International revenue increased 8% to $383.1M, but local-currency revenue growth was 4%; favorable currency movements added $14.9M, or 4%, to International revenue. Asia Pacific reported the strongest growth, with revenue up 17% reported and 7% in local currency.
Source: 10-Q Item 2 MD&A, pp.26, 30-31
During the first six months of 2026, Equifax repurchased $560.0M of shares and paid $133.5M in dividends. It also had $1.4B of commercial paper outstanding at June 30, 2026, with $0.6B available under its revolving credit facility after increasing that facility to $2.0B.
Source: 10-Q Item 2 MD&A, pp.26, 32-34
Current assets were $1.58B compared with current liabilities of $2.63B, resulting in a current ratio of 0.60x. This indicates that the company relies on ongoing operating cash flow and access to financing rather than current assets alone to meet near-term obligations.
Source: 10-Q Balance Sheet (XBRL)
Long-term debt was $4.06B and debt-to-equity was 1.70x at quarter end. Quarterly interest expense increased 13% year over year to $59.8M, showing that financing costs are a meaningful call on earnings and cash flow.
Source: 10-Q Balance Sheet and Income Statement (XBRL)
Revenue grew 10.6% year over year, but operating income grew only 1.1% because selling, general and administrative expense rose 10.0% and operating margin declined to 18.5% from 20.2%. Continued expense growth at or above revenue growth could further pressure profitability.
Source: 10-Q Income Statement (XBRL)
Six-month operating cash flow was $581.7M, while investing cash outflow was $255.4M and share repurchases totaled $560.0M. Free cash flow, calculated as operating cash flow less cash capital expenditures, was approximately $326.3M for the first six months of 2026, below the $560.0M spent on repurchases.
Source: 10-Q Cash Flow Statement (XBRL)
Reported EPS of $2.25 versus the $2.22 analyst consensus — a +1.2% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.7B | $1.54B | +10.61% |
Operating Income | $314.2M | $310.8M | +1.09% |
Net Income | $183.9M | $191.3M | -3.87% |
EPS (Basic) | $1.55 | $1.54 | +0.65% |
EPS (Diluted) | $1.54 | $1.53 | +0.65% |
SG&A Expense | $422.5M | $384.2M | +9.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.98B | $11.92B | +0.54% |
Current Assets | $1.58B | $1.5B | +5.29% |
Total Liabilities | $7.46B | $6.68B | +11.67% |
Current Liabilities | $2.63B | $1.95B | +34.95% |
Stockholders' Equity | $4.38B | $5.1B | -14.17% |
Cash & Equivalents | $170.1M | $189M | -10.00% |
Long-Term Debt | $4.06B | $4.05B | +0.14% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $581.7M | $585M | -0.56% |
Investing Cash FlowYTD | $-255.4M | $-228.6M | -11.72% |
Financing Cash FlowYTD | $-334.9M | $-346.8M | +3.43% |
Share BuybacksYTD | $560M | $127.4M | +339.56% |
D&AYTD | $376.2M | $355.7M | +5.76% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 18.5% | 20.2% | -1.74% |
Net Margin | 10.8% | — | — |
ROE | 4.2% | — | — |
ROA | 1.5% | — | — |
Current Ratio | $0.602 | — | — |
Debt to Equity | $1.704 | — | — |
Expected release date, analyst estimates & what to watch
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.
Equifax (EFX) delivered solid FY2025 results with revenue growing 6.9% to $6.07B and net income rising 9.3% to $660.3M, driven by strong operating cash flow of $1.62B, though elevated SG&A costs and a current ratio below 1.0 warrant monitoring.
Other companies in Research & Consulting Services
Equifax revenue increased 11% to $1.7B in Q2 FY2026. USIS grew 17% to $611.6M, Workforce Solutions rose 7% to $705.4M, and International increased 8% to $383.1M. Source: 10-Q Item 2 MD&A, pp.26, 29-31
Net income attributable to Equifax declined 4% to $183.9M even as revenue increased 11%. Management cited higher litigation expense related to a legal settlement for a previously disclosed coding issue and higher interest expense; its effective tax rate also increased to 27.9% from 26.3%. Source: 10-Q Item 2 MD&A, pp.27-28
The principal positive was broad revenue growth, particularly a 17% increase in USIS revenue driven by mortgage pricing, volumes, and diversified markets. The principal offset was profitability: operating margin fell to 18.5% from 20.2% as royalty, litigation, and software-amortization expenses increased. Source: 10-Q Item 2 MD&A, pp.26-30
The filing provides reported diluted EPS of $1.54, up from $1.53 in the prior-year quarter, but it does not provide analyst consensus estimates. Therefore, whether Equifax beat or missed earnings estimates cannot be determined from this 10-Q alone. Source: 10-Q Item 2 MD&A, p.28
Equifax generated $581.7M of operating cash flow during the first six months of 2026 and reported $0.6B of remaining revolver availability at June 30, 2026. However, its current ratio was 0.60x, debt-to-equity was 1.70x, and it had $1.4B of commercial paper outstanding, indicating reliance on operating cash flow and financing capacity for liquidity. Source: 10-Q Item 2 MD&A, pp.32-34; 10-Q Balance Sheet (XBRL)