Equifax’s Strong Earnings Fail to Lift Its Struggling Stock Performance
Equifax, a major player in credit reporting and risk management, has faced a turbulent year in the stock market. Despite strong financial results, its shares have fallen sharply over the past 12 months. The company continues to expand its services, even as new competition emerges in the industry.
In its latest financial update, Equifax reported a 7% rise in third-quarter revenue for fiscal 2025, reaching $1.54 billion. Adjusted earnings per share (EPS) also climbed by 10%, hitting $2.04. Analysts now project the company’s diluted EPS to grow by 4.4% year-over-year to $7.61 for the full fiscal year.
The company has not stood still in its operations. Recently, it acquired Vault Verify, a human resources services provider, to strengthen its data offerings. Yet, challenges remain. Fair Isaac Corporation, known for its FICO scores, plans to bypass credit bureaus like Equifax by selling its scores directly to mortgage lenders and resellers.
On Wall Street, opinions on Equifax remain mixed. Out of 25 analysts covering the stock in the last three months, the consensus rating is a 'Moderate Buy.' The average price target sits at $265.48, though estimates vary widely—from Stifel’s $253 to Needham’s $295. Despite this, the stock has struggled, dropping 15.8% over the past year and 26.5% in just six months.
Equifax holds a market capitalisation of $25.03 billion and remains a key provider of credit reporting and fraud detection across multiple countries. However, its recent stock performance lags behind both the S&P 500 and the industrial sector. The company’s next steps will likely hinge on navigating competition and sustaining growth in a shifting market.
