April 21 - Equifax posted a sharp increase in first-quarter profit as stronger loan demand lifted the firm's U.S. mortgage operations, yet the company said it would maintain its full-year revenue outlook in light of ongoing macroeconomic uncertainty.
The credit reporting firm said revenue for the quarter rose 14% to $1.65 billion. Net income attributable rose 29% to $171.5 million for the three months ended March 31. On a per-share basis, quarterly profit was $1.42 versus $1.06 a year earlier. Shares traded modestly higher in premarket activity, up 0.5% after the results were released.
Equifax attributed the quarter's revenue outperformance primarily to a surge in its U.S. mortgage business. "The revenue outperformance was principally driven by very strong U.S. Mortgage revenue growth of 38% principally in January and February before rates increased from the Iran conflict," the company said.
After a prolonged slowdown tied to elevated interest rates, the company said loan demand has lifted, supported by a still-strong labor market and a relatively steady economic backdrop. The pick-up in lending activity increased demand for credit scores and risk analytics, services that lenders use to assess borrower creditworthiness.
CEO Mark Begor noted the firm would hold its revenue forecast despite the robust quarterly results. He pointed to a reduction in U.S. mortgage activity following higher rates since the Iran conflict began and also cited the uncertain direction of U.S. inflation and interest rates as well as broader global macroeconomic uncertainty.
The company highlighted the way disruption in the Middle East has clouded the interest-rate outlook. A jump in oil and gas prices, the firm said, risks pushing inflation higher and could complicate the Federal Reserve's plans to lower benchmark lending rates.
Equifax reiterated its full-year 2026 guidance midpoint for local-currency revenue growth of about 10%.
Credit scores and related analytics play a central role across the financial system by informing decisions on mortgages, credit cards, auto loans and personal loans. They influence interest-rate pricing, credit limits and loan approvals, making trends in lending activity a key driver of demand for firms that supply this data and analytics.
Data snapshot
- Quarterly revenue: $1.65 billion, up 14%
- Net income attributable: $171.5 million, up 29%
- Quarterly EPS: $1.42 versus $1.06 a year earlier
- U.S. Mortgage revenue growth: 38% (driven principally by January and February)
- Full-year 2026 guidance midpoint for local-currency revenue growth: about 10%