Segment Performance
The company's USIS segment delivered 12% revenue growth, driven by strong mortgage outperformance, while diversified or non-mortgage revenue grew 5%. EWS revenue grew 9%, driven by continued penetration and expansion of income-based products. International revenue was 5% in constant currency, with EBITDA margins of 31.6%. The company's government solutions business made progress, with the launch of a new continuous evaluation solution for SNAP, which is expected to drive growth in 2026 and 2027.
Guidance and Outlook
Equifax expects strong double-digit revenue growth in 2026, driven by cloud capabilities and proprietary data. Excluding FICO mortgage royalties, revenue growth is expected to be around 7%. EBITDA dollars are expected to grow by almost 10%, and EBITDA margins are expected to increase by 75 basis points. The company's guidance assumes US GDP growth of 2-3% and a low single-digit decline in the US mortgage market.
Valuation
Using the P/E Ratio of 33.29 and EV/EBITDA of 14.9, we can assess what's priced in for Equifax. The company's high P/E Ratio suggests that investors are pricing in strong earnings growth, while the EV/EBITDA multiple indicates a premium valuation relative to its EBITDA generation. With a ROE of 13.46% and ROIC of 7.69%, Equifax is generating strong returns on equity and invested capital.
Conclusion
Equifax's strong Q4 2025 results and guidance for 2026 demonstrate the company's ability to drive revenue growth and margin expansion. With a solid track record of delivering value to customers and a strong position in the market, Equifax is well-positioned for continued success. As the company continues to invest in AI and cloud capabilities, we can expect to see further innovation and growth.