Equifax Q2 Results Show Revenue Growth, Raised 2025 Guidance, and Share Buyback

Equifax reported Q2 sales of $1.54bn and net income of $191m, raising its full-year 2025 earnings guidance. The company also executed a share buyback and increased dividends, contributing to a 5.94% stock price rise over the quarter. Analysts forecast 9.2% annual revenue growth and 20.6% earnings growth. The share price is below the consensus price target of $289.83, suggesting potential appreciation if the company executes its plans successfully.

Equifax (EFX) has reported robust Q2 2025 financial results, with revenue reaching $1.54 billion and net income of $191 million. The company's performance exceeded expectations, with revenue up 8% in constant currency and 7% reported, surpassing the midpoint of April guidance by $27 million [1].

Key highlights of the quarter include strong growth in various segments. Workforce Solutions revenue grew by 8%, driven by Verification Services' 10% growth from government and consumer lending. USIS revenue climbed 9%, with mortgage revenue surging 20%. International operations saw a 6% increase in local currency, led by Latin America's 11% growth [1].

Equifax also delivered approximately $190 million to shareholders, including $127 million in share repurchases under its new $3 billion program. The company maintained its full-year 2025 constant dollar guidance while increasing reported revenue guidance by $35 million and adjusted EPS by $0.03 [1].

For FY2025, Equifax expects to generate over $900 million in free cash flow with a cash conversion ratio exceeding 95%, maintaining revenue growth guidance of 6% in local currency. Despite strong H1 performance, management is maintaining its full-year local currency revenue growth guidance of 6% midpoint, citing economic and interest rate uncertainties [1].

The company's recent actions, such as the share buyback and dividend increase, have contributed to a 5.94% stock price rise over the quarter. Analysts forecast potential revenue growth of 9.2% annually and earnings growth of 20.6% per year, reflecting optimism surrounding Equifax's strategic initiatives [2].

The current share price of $259.64 remains below the consensus price target of $289.83, suggesting room for appreciation if the company executes its plans successfully [2].

References:
[1] https://www.stocktitan.net/news/EFX/equifax-delivers-above-guidance-second-quarter-results-returns-3p2r4bf62xzp.html
[2] https://simplywall.st/stocks/us/commercial-services/nyse-efx/equifax/news/equifax-efx-reports-q2-growth-and-raises-2025-revenue-guidan