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TransUnion (TRU) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 28, 2026

Source: earnings call transcript

Executive summary

TransUnion Q2 FY26 — Strong Performance Drives Raised Full-Year Guidance

TransUnion delivered strong Q2 FY26 results, surpassing revenue and EPS guidance, driven by robust U.S. financial services and accelerating international growth. The company raised its full-year outlook, balancing strong first-half performance with prudent conservatism for an uncertain macro environment. Strategic investments in the OneTru platform and AI-enabled solutions are fueling diversified growth and commercial momentum, positioning TransUnion for continued outperformance and increased capital returns.

Highlights

5

  • Organic constant currency revenue grew 10%, exceeding 8%-9% guidance.

  • Adjusted diluted EPS grew 13%, $0.08 ahead of guidance.

  • U.S. Financial Services revenue grew 18% (10% ex-FICO mortgage royalties).

  • International revenue accelerated to 6% organically, with Canada up 10% and India/U.K. high single digits.

  • Leverage ratio decreased to 2.6x due to strong adjusted EBITDA growth.

Concerns

3

  • Mortgage activity modestly pressured by 10-year treasury yield approaching 4.7% (up 50 bps from start of year).

  • Adjusted EBITDA margin down 90 basis points year-over-year due to FICO mortgage royalties.

  • Mortgage inquiry volumes expected to decline low double-digits in H2 FY26.

Guidance & targets

CategoryTargetConfidence
Full Year 2026 Organic Constant Currency Revenue Growth
8% to 9%
high materiality
High
Full Year 2026 Adjusted EBITDA Growth
10% to 11%
high materiality
High
Full Year 2026 Adjusted Diluted EPS Growth
11% to 12%
high materiality
High
Q3 2026 Revenue
$1.292 billion and $1.310 billion
high materiality
High
Q3 2026 Organic Growth (excluding FICO mortgage royalties)
4% to 5.5%
medium materiality
Medium
Q3 2026 Adjusted EBITDA
$455 million to $463 million
high materiality
High
Q3 2026 Adjusted Diluted EPS
$1.18 and $1.21
high materiality
High
Full Year 2026 Total Revenue
$5.127 billion and $5.162 billion
high materiality
High
Full Year 2026 Organic Constant Currency Revenue Growth (excluding FICO mortgage royalties)
5% to 6%
medium materiality
Medium
Full Year 2026 Mortgage Revenue Growth
28%
medium materiality
Medium
Full Year 2026 Mortgage Inquiry Declines
Mid- to high single-digit
medium materiality
Medium
Full Year 2026 Adjusted EBITDA
$1.807 billion to $1.827 billion
high materiality
High
Full Year 2026 Adjusted Diluted EPS
$4.75 to $4.83
high materiality
High
Pace of Second Half Share Repurchases
At least comparable to the first half
medium materiality
Medium
Leverage Ratio Target
Under 2.5x
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
U.S. Markets
Growth diversified across verticals, supported by strong first half bookings and retention, and continued demand for credit and noncredit solutions.
—11%——
U.S. Financial Services
Led the way in U.S. markets. Broad-based growth across lending types driven by sales momentum across credit and noncredit solutions, modest volume growth, and pricing actions. Excluding mortgage, grew at 9% CAGR over past two years.
—18%——
U.S. Core Non-Mortgage Financial Services
Healthy growth across lending types, reflecting a mix of healthy lending activity, pricing, new wins, and increasing adoption of broader solution set.
—8%——
U.S. Financial Services - Credit Card and Banking
Driven by lending volume growth and new wins from trusted call solutions.
—6%——
U.S. Financial Services - Consumer Lending
With strong fintech and sustained consumer demand.
—8%——
U.S. Financial Services - Auto
Driven by pricing and new wins across solutions. Outpaced declining industry volumes.
—8%——
U.S. Financial Services - Mortgage
Versus inquiries down 7%. Outperformance due to pricing actions and non tri-bureau revenues. Growth in line with expectations despite modestly lower volumes as rates increased.
—37%——
U.S. Emerging Verticals
Led by double-digit growth in insurance and high single-digit growth in technology, retail, and e-commerce. Accelerated growth.
—9%——
U.S. Emerging Verticals - Insurance
Eighth straight quarter of double-digit growth. Robust demand across solution suite, strengthening credit-based marketing, active consumer shopping, growth across CoreCredit, driving history, and trusted call solutions.
—Double-digit——
U.S. Emerging Verticals - Tech, Retail, and E-commerce
Significant portion of marketing and fraud revenue.
—High single-digit——
U.S. Emerging Verticals - Public Sector and Media
—Mid-single-digits——
U.S. Emerging Verticals - Tenant and Employment
—Returned to growth——
U.S. Emerging Verticals - Telco
—Declined modestly——
U.S. Consumer Interactive
In line with expectations, as growth in indirect channel offset by declines in direct channel.
—-3%——
International
Accelerated from flat growth in Q1. Reflected strength in developed markets and improving trends across emerging markets.
—6%——
International - Canada
Reflecting healthy activity across financial services, strong growth in fintechs and insurance.
—10%——
International - India
Accelerated growth, slightly ahead of expectations. Experienced gradually improving volumes, supported by government-backed commercial lending program and very strong new wins.
—8%——
International - U.K.
—High single-digits——
International - Latin America
Improved, with double-digit growth in Brazil and modest/improving growth in Colombia and other markets.
—5%——
International - Brazil
—Double-digit——
International - Colombia
—Modest and improving——
International - Africa
Broad-based growth across verticals and regions.
—5%——
International - Asia Pacific
Rate of decline improving versus Q1. Expected to return to growth in H2 FY26.
—-7%——

Product announcements

ProductTypeDetails
40 new products and AI-powered enhancementslaunch
TruIQ analytics platformexpansion
TruValidate fraud solutionlaunch
Trusted Call Solutionslaunch
Alternative credit attributes from FactorTrustupdate

Deals & partnerships

Bureau in Mexico Acquisition of controlling interest in the leading credit bureau in Mexico, where TransUnion was a minority investor and tech provider for over 25 years.

Plans to enhance data foundation, accelerate innovation by bringing global capabilities like TruIQ Analytics, TruValidate, and credit education tools, and enhance client engagement. Will eventually migrate Mexico to OneTru.

Risks & headwinds

Uncertain macro environment Ongoing

null

Mitigation:Guidance balances operating overperformance with appropriate conservatism; range designed to absorb reasonable level of market softening.

Inflation levels and interest rates impact on consumer behavior and loan demand Ongoing

10-year treasury yield approaching 4.7%, up roughly 50 bps from start of year.

Mitigation:Monitoring levels; impacts across portfolio (excluding mortgage) have been limited. Conservative mortgage assumptions derisk H2.

Mortgage activity pressure from rising interest rates H2 FY26

Mortgage rates moved back above 6.5%. Mortgage inquiry volumes down 7% in Q2, expected low double-digit declines in H2 FY26.

Mitigation:Conservative assumptions provide flexibility to deliver growth rates even if rates increase modestly. Pricing actions and non tri-bureau revenues expected to drive outperformance versus underlying volumes.

Competitive landscape in Mexico Long-term

Competitor recently announced acquisition of second largest credit bureau in Mexico.

Mitigation:TransUnion has leading market position, broader data archives, plans to broaden data contributions, push into fintech, bring alternative credit data, roll out OneTru, and leverage TruIQ analytics. Market is large and underpenetrated, with room for multiple players.

What to watch in Q3 FY26

Mortgage Volume Trends

Next quarter (Q3 FY26)
Current Inquiries down 7% in Q2 FY26; rates above 6.5%
Target Stabilization or less severe decline than low double-digit expectation for H2

Why it matters

Mortgage is the most rate-sensitive segment, and its performance will impact overall revenue and margin, especially given conservative H2 assumptions.

Our conservative assumptions provide us flexibility to deliver these growth rates even if rates increase modestly from current levels. We now anticipate mid- to high single-digit inquiry declines for the full year, including low double-digit declines in the second half of the year.

Find out whether TRU delivers this. Inve re-checks your case every morning.

Q&A highlights

Struggling to understand how non-mortgage organic upside is adjusted in guidance, given mortgage guidance is unchanged and most revenue guidance raise is from Mexico/M&A.

Management explained that mortgage guidance is maintained with conservative assumptions for H2 due to rising rates, providing flexibility. Non-mortgage organic growth is expected to continue at Q2 levels (6%), with strong tailwinds in financial services, emerging verticals, and international. The overall guidance is prudently conservative, with expectations to hit the high end or slightly above if current trends persist.

“But the market remains uncertain. So we are taking a prudently conservative approach towards our guidance. And as we've put on, as I said in my prepared remarks as well as what we've put on the slide, we would orient you to the high end of that guidance and that more than likely if these conditions that were currently living through right now persist, we'll be above the high end of that guidance.”

asked by Jeff Meuler · answered by Todd Cello

2 min read 7 chapters

Detailed narrative

Q2 Performance and Guidance Raise

TransUnion reported strong Q2 FY26 results, exceeding guidance for revenue, adjusted EBITDA, and adjusted diluted EPS. Organic constant currency revenue grew 10%, driven by robust U.S. Financial Services and accelerating international markets. This strong first-half performance enabled the company to raise its full-year guidance for revenue, adjusted EBITDA, and adjusted diluted EPS, reflecting confidence in ongoing trends while maintaining prudent conservatism for macro uncertainties.

OneTru Platform Modernization

The company made significant progress on its OneTru platform modernization, with roughly 60% of U.S. match activity and 30% of online customers now running on OneTru, totaling over 4,000 migrated customers. U.S. migrations are expected to complete by year-end. OneTru has also been deployed internationally in Canada, the U.K., and India, supporting the launch of TruIQ analytics and other global products like TruValidate and Trusted Call Solutions in local markets.

Innovation and AI-Enabled Solutions

TransUnion launched 40 new products and AI-powered enhancements in the first half of the year, significantly contributing to its sales pipeline. Internally, AI tools are driving productivity gains, with average improvements of over 25% for software engineers and data scientists, and more than 20% in consumer support operations. These successes reinforce confidence in AI's potential to enhance margins and fund future growth investments.

U.S. Financial Services Diversification

U.S. Financial Services, excluding mortgage, has consistently outgrown underlying market volumes, with a 9% CAGR over the past two years. This outperformance is driven by diversification, with over one-third of revenue now coming from solutions outside traditional credit reports and scores, including 12% from alternative data (FactorTrust, TruIQ) and 24% from noncredit solutions (Trusted Call, marketing, fraud). This strategy expands TransUnion's role beyond CoreCredit across the customer lifecycle.

International Market Acceleration

International revenue accelerated to 6% organically in Q2, with strong performance in developed markets like Canada (10% growth) and improving trends in emerging markets. India returned to 8% growth, supported by improving volumes and strong new business wins. The recently acquired Bureau in Mexico is significantly outperforming its acquisition case, with plans to integrate global products like TruIQ and TruValidate to accelerate growth beyond market volumes.

VantageScore Adoption Momentum

VantageScore usage in mortgage saw a meaningful increase in adoption, moving from less than 5% at the start of the year to closer to 30% across over 900 lenders. While most activity remains dual poles with FICO, there's increasing VantageScore-only usage, including for certain mortgages requiring insurance. The company's 2026 guidance assumes no benefit from VantageScore adoption, but momentum provides confidence in long-term opportunities.

Capital Allocation and Shareholder Returns

TransUnion ended Q2 with a reduced leverage ratio of 2.6x and accelerated share repurchases, totaling $150 million year-to-date. The company retains ample capacity under its $1 billion authorization and plans for second-half repurchases to be at least comparable to the first half, reflecting a bias toward capital return. The long-term target for the leverage ratio remains under 2.5x.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.