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    Equifax (EFX) Is Up 9.7% After Leveraging Up To Fund Buybacks And Guide Double-Digit Growth – Has The Bull Case Changed?

    Simply Wall St·07/30/2026 06:13:32
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    • In late July 2026, Equifax Inc. reported second-quarter results showing higher sales of US$1,700.1 million but lower net income of US$183.9 million year-on-year, issued third-quarter 2026 guidance calling for revenue of US$1.68 billion to US$1.71 billion and EPS of US$2.15 to US$2.25, completed two fixed-income offerings totaling about US$998 million in senior unsecured callable notes, and disclosed completion of a US$1,487.36 million share repurchase program covering 7,113,801 shares.
    • An interesting angle for investors is how Equifax is simultaneously funding its operations with new debt and shrinking its equity base through sizeable buybacks, while signaling confidence via guided double‑digit revenue growth versus the prior-year quarter.
    • We will now examine how Equifax’s increased leverage through its new fixed-rate notes could influence the company’s longer-term investment narrative.

    Find 49 companies with promising cash flow potential yet trading below their fair value.

    Equifax Investment Narrative Recap

    To own Equifax, you need to believe that its data, analytics and verification platforms will keep attracting customers despite competitive, legal and macro headwinds. The latest quarter showed solid revenue but softer profit, while new debt and buybacks did not materially change the near term picture: the key catalyst is still adoption of newer data products, and the biggest risk remains pressure on margins from litigation and regulatory costs.

    The most relevant update here is Equifax’s guidance for third quarter 2026, which points to high single digit to low double digit year on year growth in both revenue and EPS. That outlook provides context for the fresh bond issuance and completed US$1,487.36 million buyback, as investors weigh potential earnings growth against higher leverage and already tight margins.

    Yet behind these growth ambitions, investors should also be aware of how rising legal and compliance costs could...

    Read the full narrative on Equifax (it's free!)

    Equifax's narrative projects $8.4 billion revenue and $1.3 billion earnings by 2029. This requires 9.3% yearly revenue growth and an earnings increase of about $600 million from $691.3 million today.

    Uncover how Equifax's forecasts yield a $217.67 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    EFX 1-Year Stock Price Chart
    EFX 1-Year Stock Price Chart

    Two fair value estimates from the Simply Wall St Community span roughly US$217.67 to US$347.52 per share, underscoring how far opinions can diverge. When you compare that spread with concerns about Equifax’s higher debt load and margin pressure, it becomes even more important to review several viewpoints before forming your own view.

    Explore 2 other fair value estimates on Equifax - why the stock might be worth as much as 86% more than the current price!

    Form Your Own Verdict

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.