TransUnion (NYSE:TRU) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

TransUnion (NYSE:TRU) announced its earnings results on Tuesday. The business services provider reported $1.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.21 by $0.04, FiscalAI reports. TransUnion had a return on equity of 16.29% and a net margin of 15.08%. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter last year, the firm posted $1.10 EPS. The business’s revenue was up 12.2% on a year-over-year basis.

Here are the key takeaways from TransUnion’s conference call:

• Third-quarter results exceeded guidance: organic constant-currency revenue grew 8% (5.5% excluding FICO mortgage royalties), adjusted diluted EPS rose 14%, and international revenue returned to 10% growth, led by 18% growth in both India and Latin America.
• TransUnion raised the low end of its full-year outlook and now expects 8%–9% organic constant-currency revenue growth, 10%–11% adjusted EBITDA growth, and 12%–13% adjusted EPS growth. Management said current trends could support performance near the high end of the ranges.
• The company is accelerating share repurchases, targeting approximately $500 million for the full year, and increased its authorization to $2 billion; leverage declined to 2.5 times and the quarterly dividend rose to $0.135 per share.
• Management highlighted durable growth opportunities in insurance, which is expected to generate more than $430 million of 2026 revenue and has delivered a decade of double-digit compound growth, while OneTru migrations and more than 40 new products and AI enhancements are expanding the innovation pipeline.
• Higher interest rates are slowing mortgage activity, with mortgage inquiries expected to decline more than 20% in the fourth quarter; management also cited higher legal and regulatory expenses and warned that replacing an expiring interest-rate swap could increase 2027 net interest expense by roughly $60 million. A potential shift from tri-merge to bi-merge mortgage reports is estimated to reduce annual revenue by about $33 million, although TransUnion characterized the exposure as limited.

TransUnion Stock Down 1.5%

Shares of TRU opened at $74.29 on Thursday. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.90 and a current ratio of 1.90. TransUnion has a one year low of $60.96 and a one year high of $89.12. The stock has a market capitalization of $14.23 billion, a price-to-earnings ratio of 19.60, a PEG ratio of 1.48 and a beta of 1.58. The stock has a 50 day moving average price of $74.83 and a 200 day moving average price of $74.36.

TransUnion Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Tuesday, November 10th will be given a dividend of $0.1350 per share. The ex-dividend date is Tuesday, November 10th. This is a positive change from TransUnion’s previous quarterly dividend of $0.1250. This represents a $0.54 annualized dividend and a dividend yield of 0.7%. TransUnion’s dividend payout ratio (DPR) is presently 13.19%.

Key Headlines Impacting TransUnion

Here are the key news stories impacting TransUnion this week:

• Positive Sentiment: TransUnion reported third-quarter adjusted earnings of $1.25 per share, ahead of the $1.21 consensus estimate, while revenue rose 12.2% year over year to approximately $1.31 billion, in line with expectations. Management also indicated 8%–9% organic constant-currency revenue growth for 2026. TransUnion Announces Strong Third Quarter 2026 Results
• Positive Sentiment: The company increased its quarterly dividend 8% to $0.135 per share and expanded its share-repurchase authorization to $2 billion, including plans for roughly $500 million in buybacks. These actions may support shareholder returns and provide a valuation cushion. TransUnion Raises Dividend and Expands Buyback Program
• Positive Sentiment: Analyst support remains generally constructive. Deutsche Bank raised its price target to $93 from $90 and maintained a Buy rating, while Needham increased its target to $95 and retained Buy. Stifel lowered its target to $90 from $96 but also kept a Buy rating.
• Positive Sentiment: TransUnion launched transaction-matching technology for merchants and released findings that nearly half of Canadians have been targeted by digital fraud. Rising fraud activity could increase demand for the company’s identity, verification and fraud-prevention services. TransUnion Launches Transaction Matching for Merchants
• Neutral Sentiment: UBS initiated or reiterated a Hold rating, highlighting a more cautious view despite the company’s earnings performance and longer-term growth outlook. TransUnion Gets a Hold from UBS
• Negative Sentiment: Quarterly revenue guidance slightly missed expectations, and investors remain focused on margin pressure and mortgage-related headwinds. As a result, the strong EPS result was viewed as largely priced in, prompting a “sell-the-news” reaction after earnings. TransUnion Stock Price Slides as Q3 Earnings Meet Margin Doubts

Analyst Ratings Changes

Several equities research analysts recently commented on TRU shares. Barclays cut their price target on shares of TransUnion from $85.00 to $70.00 and set an “equal weight” rating for the company in a report on Friday, October 2nd. Wells Fargo & Company decreased their price objective on shares of TransUnion from $102.00 to $96.00 and set an “overweight” rating on the stock in a report on Wednesday. Griffin Securities set a $98.00 target price on shares of TransUnion in a research report on Wednesday, July 29th. Wall Street Zen cut shares of TransUnion from a “buy” rating to a “hold” rating in a research note on Saturday, October 3rd. Finally, The Goldman Sachs Group boosted their target price on shares of TransUnion from $68.00 to $78.00 and gave the stock a “neutral” rating in a research note on Wednesday. Ten investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $90.69.

Insider Transactions at TransUnion

In other TransUnion news, insider Steven Chaouki sold 1,000 shares of the firm’s stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $70.00, for a total value of $70,000.00. Following the transaction, the insider owned 78,888 shares in the company, valued at approximately $5,522,160. This trade represents a 1.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mohamed Abdelsadek sold 1,250 shares of TransUnion stock in a transaction on Monday, September 14th. The stock was sold at an average price of $79.07, for a total transaction of $98,837.50. Following the sale, the executive vice president directly owned 53,431 shares in the company, valued at approximately $4,224,789.17. This trade represents a 2.29% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 41,377 shares of company stock worth $3,200,570 in the last quarter. 0.37% of the stock is owned by insiders.

TransUnion Company Profile

TransUnion (NYSE: TRU) is a global information and insights company that helps businesses and consumers make more informed decisions. The company collects, analyzes and delivers data related to credit, identity, fraud and consumer behavior, serving customers across financial services, insurance, healthcare, retail, telecommunications and other industries.

Its products and services include consumer credit reports and scores, credit-risk assessment, marketing and audience insights, identity verification, fraud detection, investigative tools and decisioning software.