Equifax combines a proprietary payroll-data moat, 11% Q2 growth, and 100%+ free-cash-flow conversion with a compelling five-year base-case target of $309.12.
Overview
Equifax is a global data, analytics, and technology company and one of the three major U.S. consumer reporting agencies, serving more than 1.2 billion consumers and 100 million businesses. Workforce Solutions contributes approximately 42%–45% of revenue and carries the strongest growth and margin profile, USIS contributes 35%–38%, and International approximately 20%. **The Work Number’s 211 million active records, proprietary employer feeds, and Equifax Cloud create a high-switching-cost data moat.** Q2 2026 revenue rose 11% reported to $1,700.1 million, Adjusted EPS rose 13% to $2.25, and Adjusted EBITDA increased 10.5% to $552 million at a 32.5% margin. FY2026 guidance was reaffirmed at $6.710–$6.780 billion of revenue and $8.39–$8.69 of Adjusted EPS, with more than $1.0 billion of free cash flow expected. Shares near $160 trade at 18.66x forward P/E and approximately 5.8% FCF yield. **Near-term catalysts are the $150 million AI savings target, government verification growth, VantageScore 4.0 adoption, and mortgage recovery; the base case values the shares at $309.12 in 2031.**