TransUnion (NYSE:TRU) reported second-quarter results above its guidance and raised its outlook for full-year 2026, citing continued strength in U.S. financial services, growth in emerging verticals and improving international trends.
Organic constant-currency revenue increased 10% in the second quarter, exceeding the company’s prior 8% to 9% forecast and marking its 10th consecutive quarter of at least high-single-digit organic growth. Excluding FICO mortgage royalties, organic revenue grew 7%.
U.S. Financial Services and Emerging Verticals Lead Growth
U.S. markets revenue grew 11% on an organic constant-currency basis. Financial services revenue rose 18%, or 10% excluding FICO mortgage royalties, as the company cited sales momentum in credit and non-credit offerings, modest volume growth and pricing actions.
Within non-mortgage financial services, revenue increased 8%. Credit card and banking revenue grew 6%, consumer lending grew 8%, and auto revenue increased 8%. Chief Financial Officer Todd Cello said auto growth outpaced declining industry volumes, supported by pricing and new customer wins.
Mortgage revenue rose 37%, or 15% excluding FICO royalties, despite a 7% decline in inquiries. TransUnion attributed the outperformance to pricing actions and revenue sources beyond traditional tri-bureau reports. The company also added FactorTrust alternative credit attributes to its mortgage credit file at no additional cost to customers.
The company said VantageScore adoption in mortgage has expanded. At the beginning of the year, fewer than 5% of TransUnion mortgage credit inquiries included VantageScore; that figure had risen to nearly 30% across more than 900 lenders by the second quarter. Management said its 2026 outlook does not include a benefit from VantageScore adoption.
Emerging verticals revenue accelerated 9%, led by an eighth consecutive quarter of double-digit growth in insurance. Technology, retail and e-commerce revenue grew at a high-single-digit rate, while public sector and media grew in the mid-single digits. Tenant and employment returned to growth, while telecommunications declined modestly. Consumer interactive revenue fell 3%, as indirect-channel growth was offset by declines in the direct channel.
International Revenue Reaccelerates
International organic constant-currency revenue grew 6%, improving from flat growth in the first quarter. Canada grew 10%, India rose 8%, and the United Kingdom increased 9%, according to the company.
Chief Executive Officer Chris Cartwright said India benefited from improving credit volumes, new business wins and government-backed support for commercial lending. Management expects similar growth in India during the third quarter and faster growth in the fourth quarter as comparisons become easier.
Latin America grew 5%, supported by double-digit growth in Brazil and improving performance in Colombia and other markets. Africa also increased 5%. Asia-Pacific revenue declined 7%, though the rate of decline improved as TransUnion lapped prior-year one-time contracts. The company expects Asia-Pacific to return to growth in the second half.
TransUnion said its recently acquired Mexican credit bureau is performing ahead of its acquisition case on revenue and adjusted EBITDA. The company plans to deploy TruIQ analytics, TruValidate fraud tools and credit education products in Mexico over the next year, while eventually migrating the operation to its OneTru platform.
OneTru Migration and AI Investment
Cartwright said TransUnion has migrated more than 4,000 U.S. credit customers to its OneTru platform. Roughly 60% of U.S. batch activity and 30% of online customers now operate on OneTru, and the company expects to complete U.S. customer migrations by the end of 2026.
The company has also deployed OneTru instances in Canada, the United Kingdom and India to support its TruIQ analytics platform. It launched TruValidate in the United Kingdom and Trusted Call Solutions in Canada and India.
TransUnion launched 40 products and AI-powered enhancements in the first half. It said internal AI tools have produced average productivity gains of more than 25% among software engineers and data scientists, along with early gains of more than 20% in consumer support operations.
Cartwright said the company expects AI adoption among lenders to increase consumption of proprietary data and demand for analytics and decisioning capabilities. He also said TransUnion’s TruIQ platform and agentic AI tools could expand its addressable market by automating modeling and prediction work for customers.
Higher Full-Year Outlook and Capital Returns
For 2026, TransUnion raised its outlook for organic constant-currency revenue growth to 8% to 9%, adjusted EBITDA growth to 10% to 11%, and adjusted diluted EPS growth to 11% to 12%. The EPS growth forecast was increased from a prior range of 9% to 11%.
- Full-year revenue is projected at $5.127 billion to $5.162 billion, representing growth of 12% to 13%.
- Full-year adjusted EBITDA is expected to be $1.807 billion to $1.827 billion.
- Adjusted diluted EPS is forecast at $4.75 to $4.83.
- Third-quarter revenue is projected at $1.292 billion to $1.310 billion, with adjusted diluted EPS of $1.18 to $1.21.
Management maintained its full-year mortgage revenue growth expectation of 28%, or 6% excluding FICO royalties, while assuming mid- to high-single-digit inquiry declines for the year and low-double-digit declines in the second half. Cello said the company has taken a conservative view of mortgage trends as rates have risen, while expecting non-mortgage organic growth to remain at or above the 6% rate reported in the second quarter.
TransUnion ended the quarter with $5.6 billion in debt and $839 million in cash, lowering its leverage ratio to 2.6 times. Through July, the company repurchased 2.1 million shares at an average price of about $71 per share, totaling roughly $150 million. Management said it expects second-half repurchases to be at least comparable with the first-half pace and continues to target leverage below 2.5 times over the long term.
About TransUnion (NYSE:TRU)
TransUnion is a global information and insights company that helps businesses and consumers make critical decisions using data and analytics. As one of the three major credit bureaus in the United States, TransUnion collects and aggregates credit information on individuals and businesses, providing credit reports, risk scores and portfolio management tools to financial institutions, lenders, landlords and other decision makers. Its consumer-facing products enable individuals to monitor credit status, detect identity theft and access personalized financial insights.
The company’s offerings span credit risk assessment, identity management, fraud prevention and marketing solutions.
