Equifax (EFX) Down 7.7% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Equifax (EFX). Shares have lost about 7.7% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Equifax due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Equifax, Inc. before we dive into how investors and analysts have reacted as of late.Equifax Beats on Q1 EarningsEquifax has reported impressive first-quarter 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.EFX has posted $1.86 in earnings per share (EPS), beating the Zacks Consensus Estimate by 10.1%. This marked a 21.6% jump from the first quarter of 2025. The company recorded $1.6 billion in its top line, surpassing the consensus estimate by 2.3%. Revenues increased 14.4% from the year-ago quarter.EFX’s Solid Segmental Growth Beats ExpectationsThe workforce solutions segment saw 10% year-over-year revenue growth. The figure stands at $683.1 million, outpacing our estimate of $680 million. Within this segment, verification services registered $571.4 million in revenues, up 14% from the year-ago quarter, and employer services revenues dipped 4% to $111.7 million.The USIS segment witnessed $605.6 million in revenues. The metric increased 21% year over year and surpassed our projection of $574.9 million. Within this segment, Online Information Solutions generated $553.7 million, up 24% year over year. Financial Marketing Services' revenues were flat at $51.9 million.International revenues witnessed an 11% year-over-year rise on a reported basis and 4% in local currency basis to $360.2 million. We estimated EFX to record $346.3 million in international revenues, which the company successfully surpassed in the first quarter of 2026.Revenues from Europe gained 9% year over year on a reported basis and 1% on a local-currency basis to $94 million. The company logged $102.7 million in revenues in Latin America, which grew 9% year over year on a reported basis and 4% on a local-currency basis.The Asia Pacific and Canada reported $92.6 million and $70.9 million in revenues, respectively. Asia Pacific revenues moved up 16% year over year on a reported basis and 6% on a local-currency basis. Canada delivered 12% year-over-year growth in revenues on a reported basis and 8% on a local-currency basis.Uptick in EFX’s Adjusted EBITDA, Margins DipThe company recorded $477.4 million in adjusted EBITDA, delivering 12.8% year over year growth. Its margin tanked 30 basis points (bps).Workforce Solution’s adjusted EBITDA margin was 52.3%, up 220 bps from the year-ago quarter. On the USIS front, the adjusted EBITDA margin was 30.3%, which declined 420 bps year over year. The international segment delivered 25% in adjusted EBITDA, gaining 90 bps from the first quarter of 2025.EFX’s Resilient Cash Position, Debt StableEquifax exited the first quarter with cash and cash equivalents of $183.4 million compared with $180.8 million at the end of the fourth quarter of 2025. The company has a long-term debt of $4.1 billion, which was flat with the preceding quarter.Cash generated from operating activities amounted to $241.9 million, whereas capital expenditure totaled $120.4 million. The company distributed $67.1 million as dividends in the quarter.Equifax’s Q2 & 2026 OutlookManagement expects $1.68-$1.71 billion in revenues for the second quarter of 2025. EPS is expected to be $2.15-$2.25.For 2026, revenues are anticipated to be at $6.69-$6.81 million, higher than the preceding quarter’s view of $6.66-$6.78 billion. Management raised the EPS outlook by a slight margin to $8.34-$8.74 per share from the preceding quarter’s view of $8.3-$8.7 per share.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.VGM ScoresCurrently, Equifax has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Equifax has a Zacks Rank #3 (Hold). 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