Equifax Faces Challenges as Market Expectations Diverge
Financial Year Performance and Analyst Perspectives
Atlanta, Georgia-based Equifax Inc. (EFX) is a global leader in data, analytics, and technology focused on financial technology. The company provides vital information solutions and HR outsourcing services to various clients, including businesses, governments, and consumers. With a market capitalization of $29.5 billion, Equifax operates through segments such as Workforce Solutions, U.S. Information Solutions (USIS), and International.
However, Equifax has struggled in the stock market recently. EFX stock has decreased by 7.4% over the last year, and it is down 6.6% year-to-date. In contrast, the S&P 500 Index ($SPX) has risen by 20.7% over the past year and gained 2.2% in 2025.
When compared to the Fidelity Disruptive Finance ETF’s (FDFF) impressive 25.4% gain over the past year and a 1.2% increase in 2025, Equifax’s performance appears even less favorable.
Despite beating analysts’ expectations for its bottom line, Equifax’s stock fell by 8.4% following the release of mixed quarterly results on February 6. The company reported an impressive 17.1% year-over-year increase in adjusted earnings per share (EPS) to $2.12, surpassing consensus estimates by 95 basis points. Even amid softening US hiring and mortgage markets, Equifax achieved a 7% year-over-year growth in operating revenues to $1.4 billion, despite missing revenue expectations. For fiscal 2025, the company anticipates a modest revenue growth of 4.7% year-over-year to $5.95 billion. Additionally, with an expected decline of about 12% in US mortgage hard credit inquiries this year, Equifax projects its adjusted EPS will rise by only 2.2% year-over-year to $7.45, leading to concerns among investors.
Nonetheless, analysts foresee a more optimistic outlook for Equifax, estimating an adjusted earnings increase of approximately 4% year-over-year to $7.58 per share. A positive trend exists, as the company has consistently surpassed bottom-line expectations for four consecutive quarters.
The consensus rating for EFX stock among 21 analysts is a “Strong Buy,” comprised of 14 “Strong Buy,” two “Moderate Buy,” and five “Hold” ratings. Although slightly less bullish than in the previous month—when 15 analysts rated it as a “Strong Buy”—the outlook remains generally positive.
On February 7, Oppenheimer analyst Owen Lau maintained an “Outperform” rating on EFX but reduced the price target to $279. Currently, EFX has a mean price target of $291.11, indicating a 22.3% potential increase from current price levels. Furthermore, the highest street target of $325 suggests an impressive 36.5% upside.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
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