How Equifax Is Using AI and Mortgage Demand to Drive Its Next Growth

Equifax Expands AI-Driven Efficiency Goals

Equifax doubled its 2026-2028 AI-driven cost and capital savings target to $150 million, making artificial intelligence a broader productivity tool rather than just a product feature.

Management is applying AI and agentic solutions across product development, technology, operations and support functions, including human resources, legal and finance. The goal is to improve speed, accuracy and productivity while supporting margin expansion. Technology and operations represent about 60% of gross labor spending, giving the program a meaningful operating base.

EFX Mortgage Growth Signals Product Adoption

U.S. Information Solutions, or USIS, delivered 17% revenue growth in the second quarter, helped by a 40% increase in mortgage revenues. The gains reflect product adoption as well as a mortgage market that provided enough activity for Equifax’s scoring and data offerings to show leverage.

VantageScore adoption is an important part of that story. By July 2026, about 1,300 mortgage lenders were using the product, and second-quarter VantageScore transactions reached about 2.2 million, nearly triple the first-quarter level. TransUnion TRU also competes in credit data and analytics, making lender adoption a key industry battleground.

Equifax Targets Mexico Through a Major Acquisition

Equifax signed an agreement to acquire Círculo de Crédito for an enterprise value of $750 million. The deal would expand Equifax’s international footprint in Mexico and fit its bolt-on acquisition strategy.

Círculo generated approximately $134 million in trailing revenues through June 30, 2026, up 31%, with an adjusted EBITDA margin of roughly 46%. Management expects the transaction to be accretive to adjusted earnings per share in the first year. Experian plc EXPGY, another global information services company, offers peer context because international data and analytics scale remain central to the sector’s growth narrative.

EFX International Margins Show Operating Leverage

International revenues rose 8% on a reported basis in the second quarter and 4% in local currency. Asia Pacific was the standout, with 17% reported revenue growth and 7% local-currency growth, while Latin America rose 9% on a reported basis and 3% in local currency.

The margin trend was more encouraging than the headline growth rate alone. International operating margin improved to 12.1% from 10.9%, and adjusted EBITDA margin expanded to 27.6% from 26.4%. That 120-basis-point improvement contrasted with margin pressure in Workforce Solutions and USIS, showing better incremental leverage outside the U.S. segments.

Equifax Scores Temper the Emerging Growth Story

The emerging growth story is credible, but it is not yet an all-clear investment signal. AI savings, VantageScore adoption, new-product activity and the Círculo acquisition give Equifax multiple paths to faster revenue growth, but execution risk remains tied to integration, capital demands and margin delivery.

The stock currently carries a Zacks Rank #3 (Hold), which points to a neutral near-term earnings-revision picture. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Growth Score of B supports the expansion thesis, while a VGM Score of C suggests the overall blend of value, growth and momentum is not especially strong.

The Momentum Score of F is the main restraint. Zacks Style Scores are designed to complement the Zacks Rank, and stronger scores generally indicate better alignment with a given investment style. For EFX, the profile favors patient investors who are comfortable waiting for technology initiatives and mortgage adoption to translate into steadier market confirmation.

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