Key Highlights

  • TransUnion revenue was $1,312.5 million, up 12.2%, with organic constant-currency growth of 7.6%.
  • Adjusted diluted EPS was $1.25 versus $1.10; GAAP diluted EPS was $0.81 versus $0.49.
  • Adjusted EBITDA was $464.8 million, up 9.3%, at a 35.4% margin versus 36.3%.
  • 2026 adjusted diluted EPS guidance was raised to $4.81 to $4.88 from $4.75 to $4.83.
  • The board added $1 billion to the buyback authorization, bringing it to $2 billion.

TransUnion Earnings: Why Was the EPS Outlook Raised While Revenue Guidance Held?

TransUnion (NYSE:TRU) reported third-quarter results on Tuesday, October 27. Revenue was $1,312.5 million, up 12.2% from $1,169.5 million, and adjusted diluted EPS was $1.25 versus $1.10, up about 14%. GAAP diluted EPS was $0.81 versus $0.49. As screened, the EPS estimate was $1.21.

Full-year adjusted diluted EPS guidance rose to $4.81 to $4.88 from $4.75 to $4.83, citing lower net interest expense and recent repurchases. Revenue guidance of $5,131 million to $5,162 million and adjusted EBITDA of $1,808 million to $1,827 million were maintained, with management positioned for the high end if conditions persist.

Fourth-quarter guidance is revenue of $1,264 million to $1,294 million, adjusted EBITDA of $450 million to $468 million and adjusted EPS of $1.15 to $1.22.

Segments: Where Did US Markets and International Growth Come From?

US Markets revenue was $976.8 million, up 7.0%. Financial Services rose 10.8% to $485.5 million, Emerging Verticals rose 6.3% to $351.0 million, and Consumer Interactive fell 3.0% to $140.3 million. US adjusted EBITDA margin was 36.2% versus 38.4%.

International revenue rose 30.4% to $339.0 million, or 10.4% organic constant currency, with adjusted EBITDA up 38.5% to $155.7 million at a 45.9% margin. Latin America reached $98.7 million after the Mexico acquisition closed in March, and India grew 17.7% in constant currency to $73.7 million.

Mortgage Royalties and Rates: What Did Management Say About Pressure Points?

A credit scoring provider's mortgage royalty is a no-margin pass-through of roughly $315 million of 2026 revenue. It adds about 3 points to full-year organic growth and reduces the full-year adjusted EBITDA margin by about 80 basis points. Mortgage inquiries are expected to fall more than 20% in the fourth quarter.

Management pointed to rising rates, with the 10-year yield up more than 30 basis points since July, as a headwind to mortgage affordability and a moderate one for auto. Cards and personal loans are seen as less rate sensitive.

Leverage was 2.5 times net debt to adjusted EBITDA, up 0.3 turns from the Mexico deal, with a target below 2.5 times. About 70% of debt is swapped to fixed, and swap replacement is expected to add about $60 million to 2027 net interest expense.

Cash Flow and Buybacks: What Should Investors Watch Next?

Nine-month operating cash flow was $888.6 million versus $668.1 million, and capital spending was $201.3 million. Calculated free cash flow was about $687 million. Repurchases totaled $244.6 million year to date, with up to $500 million expected for 2026.

The board raised the repurchase authorization by $1 billion on October 26 and lifted the quarterly dividend to $0.135 from $0.125, payable November 25 to holders of record on November 10.

Next are fourth-quarter mortgage volumes, the rate backdrop, and whether results reach the high end of guidance.