Q4 Financial Results Overview: Equifax (NYSE:EFX) and Other Companies in the Data & Business Process Services Sector

Q4 Review: Data & Business Process Services Sector Performance

As the latest earnings season wraps up, it's an ideal moment to reflect on which companies excelled and which lagged in the data and business process services industry. Let’s begin our overview with Equifax (NYSE:EFX).

Industry Overview

Growing dependence on data analytics across sectors and the pursuit of cost savings through outsourcing are fueling opportunities for companies in this field. As digital transformation accelerates in areas like payroll, HR, and credit risk assessment, leading data and business process service providers may see rising demand. However, the industry also faces challenges, including stricter regulations around data privacy and security—such as GDPR and evolving U.S. laws—which could restrict data usage and monetization. Additionally, the increasing threat of cyberattacks poses significant risks for firms managing sensitive information, heightening the potential for reputational damage if breaches occur.

Q4 Sector Results

Among the nine data and business process services companies we monitor, Q4 results were generally positive. Collectively, these firms surpassed revenue expectations by 2.1%, and their forecasts for the next quarter were in line with analyst projections.

Despite some outperformers, the sector as a whole experienced a downturn, with average share prices falling 2.7% since the latest earnings announcements.

Spotlight: Equifax (NYSE:EFX)

Equifax, a global leader in data analytics, maintains financial records for over 800 million individuals worldwide, with a history dating back to 1899. The company supplies credit and business information to lenders, employers, and other organizations.

In Q4, Equifax posted revenue of $1.55 billion, marking a 9.2% increase year-over-year and exceeding analyst estimates by 1.4%. While revenue guidance for the upcoming quarter was above expectations, the company fell short on projected EPS for the next period, resulting in mixed overall results.

Mark W. Begor, CEO of Equifax, highlighted robust performance in several segments, including 20% growth in U.S. Mortgage revenue and 9% growth in Workforce Solutions. The company also saw notable gains in Verification Services and USIS, with international growth led by Latin America. Despite market challenges, Equifax remains optimistic about its momentum heading into 2026.

Since releasing its results, Equifax shares have climbed 12.3% and are currently trading at $196.59.

Top Performer: Broadridge (NYSE:BR)

Broadridge Financial Solutions processes over $10 trillion in daily trades and manages proxy voting for more than 800 million equity positions. The company delivers technology solutions for banks, asset managers, and public companies.

Broadridge reported Q4 revenue of $1.71 billion, up 7.8% from the previous year and beating analyst forecasts by 6.5%. The company also exceeded EPS expectations, making it the top performer among its peers this quarter.

Despite its strong financials, Broadridge’s stock has dropped 10.1% since the earnings release and is now priced at $178.30.

Slowest Growth: Verisk (NASDAQ:VRSK)

Verisk Analytics manages one of the largest private insurance databases, processing over 2.8 billion records annually. The company provides data-driven solutions to help insurers evaluate risk and prevent fraud.

For Q4, Verisk reported $778.8 million in revenue, a 5.9% year-over-year increase and slightly above analyst expectations. However, its full-year revenue guidance fell short of forecasts, making it the slowest-growing company in the group.

Despite this, Verisk’s stock has risen 10.5% since the announcement and is currently valued at $195.84.

SS&C Technologies (NASDAQ:SSNC)

Founded in 1986, SS&C Technologies bridges technology and finance, offering software solutions that automate complex processes for financial and healthcare organizations.

SS&C delivered $1.65 billion in revenue for Q4, up 8.1% year-over-year and surpassing analyst expectations by 1.9%. The company also raised its full-year guidance more than any peer, beating both EPS and revenue estimates.

Despite these achievements, SS&C shares have declined 1.9% since reporting and are currently at $73.57.

CoStar Group (NASDAQ:CSGP)

CoStar Group operates a comprehensive real estate database, updating over 10,000 property records daily. The company provides analytics and online marketplaces for commercial and residential properties in the U.S. and U.K.

In Q4, CoStar reported $900 million in revenue, a 26.9% increase year-over-year and slightly above analyst expectations. However, the company missed both full-year and next-quarter EPS guidance, despite leading the group in revenue growth.

CoStar’s stock has fallen 9.3% since the earnings release and is now trading at $44.59.

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