Did Strong Q3 Results and Raised Guidance Just Shift Equifax's (EFX) Investment Narrative?

• Equifax recently reported third-quarter 2025 results, posting US$1.54 billion in revenue and raising its full-year revenue and earnings guidance following strong performances in its U.S. Mortgage and Workforce Solutions segments.
• This update reflects not only better-than-expected financial results but also the positive impact of Equifax’s ongoing cloud transformation and new product offerings, such as expanded mortgage credit score solutions.
• With management’s increased guidance, we’ll explore how expectations for stronger revenue growth could affect Equifax’s future investment outlook.

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Equifax Investment Narrative Recap

To be a shareholder in Equifax, you have to believe in its ability to leverage cloud transformation and innovative data products to win share in core markets while managing costs and competitive threats. The recent Q3 2025 earnings beat and higher guidance reinforce confidence in revenue momentum, which remains the most important near-term catalyst. However, ongoing legal and compliance costs, which management still expects to be elevated, continue to be the main risk for earnings.

Equifax’s third-quarter share buyback, repurchasing 1,237,362 shares for US$300 million, stands out as the most relevant recent announcement. While the buyback reflects confidence in Equifax's financial foundation, it does not meaningfully alter the near-term revenue catalysts or address the underlying risks from rising litigation expenses and competition.

By contrast, investors should not overlook the persistent legal and compliance costs that could pressure margins over the coming quarters if...

Read the full narrative on Equifax (it's free!)

Equifax's outlook anticipates $7.8 billion in revenue and $1.3 billion in earnings by 2028. This projection is based on 9.9% annual revenue growth and a $660 million increase in earnings from the current $639.7 million.

Uncover how Equifax's forecasts yield a $277.70 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community contributors have published five fair value estimates for Equifax, ranging from US$256.57 to US$284.84. With legal costs continuing to weigh on profit growth, opinions in the market vary widely, explore more views to see what others expect next.

Explore 5 other fair value estimates on Equifax - why the stock might be worth as much as 22% more than the current price!

Build Your Own Equifax Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Equifax research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Equifax research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Equifax's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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