Equifax Shares Drop 8% Despite Q2 Beat

• UBS maintains a "Buy" rating for Equifax (NYSE:EFX) with a price target of $278, despite the company's cautious outlook for the full year 2025.
• Strong Q2 performance driven by US mortgage activity and product innovation, with a notable shift towards cloud-based solutions.
• Guidance for Equifax Workforce Solutions (EWS) revised downward due to macroeconomic uncertainties, advising a hold on EFX shares in the near term.

Equifax (NYSE:EFX), a global data, analytics, and technology company known for its credit reporting services, received a "Buy" rating from UBS on July 23, 2025, with a "hold" action and a price target of $278. At that time, EFX was trading at $243.32, as reported by StreetInsider.

Equifax's strong second-quarter results for 2025 highlight its growth, especially in US mortgage activity and product innovation. This growth is largely due to its transition to cloud-based solutions. Despite these positive results, the company has kept its full-year 2025 guidance unchanged, reflecting a cautious outlook.

The company's management has revised the guidance for Equifax Workforce Solutions (EWS) downward. This revision is due to ongoing macroeconomic uncertainties and potential challenges in the latter half of the year. As a result, the recommendation remains to hold Equifax shares, given the limited visibility in near-term performance.

Currently, EFX is priced at $244.45, showing a price change of $6.04, which is an increase of approximately 2.53%. The stock has fluctuated between $240.01 and $244.67 today. Over the past year, EFX has seen a high of $309.63 and a low of $199.98.

Equifax's market capitalization is approximately $30.36 billion, with a trading volume of 658,481 shares. Despite the promising long-term strategies in cloud and data, the recommendation to hold EFX shares remains due to the uncertainties in the near-term performance.

• The consensus price target for Equifax Inc. (NYSE: EFX) has been adjusted from $319.11 to $285, with Jefferies analyst Hamzah Mazari setting a higher target of $320.
• Equifax reported a 7% revenue increase to $1.53 billion, surpassing guidance by $27 million.
• The company has a positive Earnings ESP, indicating potential to exceed expectations, and has returned approximately $190 million in cash to shareholders.

Equifax Inc. (NYSE: EFX) is a global leader in data, analytics, and technology, offering a wide range of information solutions and human resources business process automation outsourcing services. The company operates through three main segments: Workforce Solutions, U.S. Information Solutions (USIS), and International. These segments provide services such as employment and income verification, credit information and scoring, fraud detection, and identity verification, catering to a diverse clientele across various industries and regions.

The consensus price target for Equifax has seen a decline over the past year, dropping from $319.11 to $285. This shift suggests a more cautious outlook from analysts. However, analyst Hamzah Mazari from Jefferies has set a higher price target of $320, indicating confidence in Equifax's performance. This optimism is supported by Equifax's recent financial results, which showed a 7% revenue increase to $1.53 billion, surpassing guidance by $27 million.

Equifax's earnings reports play a crucial role in shaping analysts' price targets. The company is experiencing positive momentum as it approaches the earnings season, with favorable revisions in its earnings estimates. According to Zacks, Equifax has a positive Earnings ESP (Earnings Surprise Prediction), suggesting the potential to exceed expectations. This aligns with the confidence expressed by Jefferies' analyst, who maintains a $320 price target.

Market conditions and strategic initiatives also impact analysts' perceptions of Equifax's stock. Despite challenges in the U.S. hiring and mortgage markets, Equifax has managed to return approximately $190 million in cash to shareholders. The company's strong performance in its USIS, international operations, and Workforce Solutions segments is anticipated to drive growth in its upcoming earnings report, further supporting the positive outlook from analysts.

Regulatory developments are another factor influencing Equifax's stock target prices. A recent survey by Kompliant and Equifax highlights the importance of advanced compliance technology in the financial sector. With 55% of financial firms adopting intelligent solutions for risk management, Equifax is at the forefront of transforming compliance into a strategic business advantage. This strategic direction is reflected in the $320 price target set by Jefferies' analyst, underscoring confidence in Equifax's role in the evolving compliance landscape.

UBS reaffirmed its Buy rating and $315 price target on Equifax (NYSE:EFX), highlighting the company’s strong growth framework and significant long-term earnings potential, particularly if the mortgage market rebounds more meaningfully.

Equifax recently reaffirmed its long-term revenue growth target of 8–12%, countering expectations that it might scale that back to a more modest 7–10% range. UBS sees this as a positive signal, underpinned by the company's ongoing cloud transformation, which is expected to accelerate product development and enhance integration across its U.S. Information Solutions (USIS) and Employer Services (EWS) segments—together comprising nearly 80% of revenue.

The firm also sees sizable international expansion opportunities within a total addressable market exceeding $50 billion. While the outlook for the U.S. mortgage market remains cautious—with only modest 2–3% annual growth assumed through 2030—the base case doesn't factor in a full recovery. Should mortgage activity rebound more significantly, UBS estimates a potential 27% boost to 2030 EPS, increasing it to around $19 versus its current projection of $15.

UBS maintains that Equifax is well-positioned to deliver on its capital allocation plans, targeting $1.35 billion in 2025 and over $3 billion by 2030. Overall, the firm sees a compelling long-term investment case backed by strong execution, scalable infrastructure, and optional upside from cyclical recovery.

Equifax (NYSE:EFX) delivered a stronger-than-expected start to 2025, with first-quarter results beating analyst forecasts, thanks to solid revenue gains across key business segments. The company also boosted its shareholder returns with a dividend increase and a fresh stock repurchase program.

Adjusted earnings came in at $1.53 per share on $1.44 billion in revenue, outpacing expectations of $1.50 and $1.40 billion, respectively. Total revenue grew 4% year-over-year, or 5% on a local currency basis, coming in $37 million above the midpoint of company guidance.

The quarter’s growth was led by a 7% jump in U.S. mortgage-related revenue within the Information Solutions unit, which helped lift segment revenue to $499.9 million. Workforce Solutions generated $618.6 million in revenue, up 3%, as Verification Services grew 5%. International sales inched up 1% on a reported basis and rose 7% in local currency to $323.5 million.

Despite ongoing macro uncertainty, Equifax reaffirmed its full-year guidance, projecting 6% local currency revenue growth and adjusted earnings of $7.45 per share.

Equifax (NYSE:EFX) delivered a stronger-than-expected start to 2025, with first-quarter results beating analyst forecasts, thanks to solid revenue gains across key business segments. The company also boosted its shareholder returns with a dividend increase and a fresh stock repurchase program.

Adjusted earnings came in at $1.53 per share on $1.44 billion in revenue, outpacing expectations of $1.50 and $1.40 billion, respectively. Total revenue grew 4% year-over-year, or 5% on a local currency basis, coming in $37 million above the midpoint of company guidance.

The quarter’s growth was led by a 7% jump in U.S. mortgage-related revenue within the Information Solutions unit, which helped lift segment revenue to $499.9 million. Workforce Solutions generated $618.6 million in revenue, up 3%, as Verification Services grew 5%. International sales inched up 1% on a reported basis and rose 7% in local currency to $323.5 million.

Despite ongoing macro uncertainty, Equifax reaffirmed its full-year guidance, projecting 6% local currency revenue growth and adjusted earnings of $7.45 per share.

Equifax Inc. (NYSE:EFX) is a leading global data, analytics, and technology company, known for its comprehensive credit reporting services and data analytics capabilities. The company competes with major credit reporting agencies like Experian and TransUnion, operating across various segments including Workforce Solutions, US Information Solutions, and International.

On February 6, 2025, Equifax reported an EPS of $2.12, which was in line with the estimated EPS of $2.12. This performance marks a positive trend, with the company having reported an EPS of $1.81 in the same quarter of the previous year, indicating a growth in earnings. However, Equifax's actual revenue of approximately $1.42 billion fell short of the estimated $1.44 billion, according to Zacks Investment Research.

The company's strong performance in the fourth quarter of 2024 was driven by robust growth across its various segments, despite missing revenue targets. The price-to-earnings (P/E) ratio of 55.08 and the price-to-sales ratio of 5.55 suggest high market expectations for future earnings growth and reflect investor confidence in its revenue-generating capabilities.

Further financial metrics such as the enterprise value to sales ratio of 6.44 and the enterprise value to operating cash flow ratio of 27.23 provide insights into Equifax's valuation relative to its revenue and cash flow generation. The earnings yield of 1.82% offers a perspective on the return on investment for shareholders. Additionally, Equifax's debt-to-equity ratio of 1.11 indicates a moderate level of debt compared to its equity, while the current ratio of 0.88 suggests potential challenges in covering short-term liabilities with short-term assets.