TransUnion beats estimates, hikes dividend as credit demand strengthens
Data analytics company projects 8-9% revenue growth for 2026 after strong Q4 performance
TransUnion shares moved in early Thursday trading after the credit reporting and data analytics company delivered stronger-than-expected fourth quarter results and raised its dividend, signaling confidence in continued demand for its risk management solutions.
The Chicago-based company reported Q4 2025 revenue of $1.17 billion, up 13% from the prior year and beating analyst estimates of approximately $1.13 billion. Adjusted earnings per share reached $1.07, exceeding the consensus estimate of $1.04.
"We delivered strong fourth quarter and full year 2025 results, exceeding our guidance for revenue, Adjusted EBITDA and Adjusted Diluted EPS," said Chris Cartwright, TransUnion's president and chief executive officer. "These results were driven by balanced growth across our businesses, innovation-led commercial momentum, and disciplined capital allocation."
The company's U.S. Financial Services segment grew 19% year-over-year, while Emerging Verticals expanded by 16%, demonstrating resilience in key markets despite broader economic uncertainty. The strong performance contributed to full-year 2025 revenue of $4.58 billion, a 9% increase from 2024, with adjusted diluted EPS rising to $4.30 from $3.91 in the prior year.
TransUnion's board approved an 8.7% dividend increase to $0.125 per share, payable March 13 to shareholders of record as of February 26. The company also repurchased $300 million of its shares during 2025, part of a broader strategy to return capital to shareholders while investing in growth initiatives.
Looking ahead, TransUnion provided optimistic 2026 guidance, projecting revenue growth of 8-9% and adjusted EPS growth of 8-10%. For the first quarter, the company expects revenue between $1.195 billion and $1.205 billion, representing 9-10% growth.
Analysts have maintained a bullish outlook on the stock, with 21 analysts covering the company and a consensus price target of $105.25. The strong ratings reflect confidence in TransUnion's position as a critical provider of data and analytics for lending, insurance, and other financial services.
The company's focus on emerging verticals and innovation in areas such as fraud detection and alternative data sources appears to be paying off, as businesses increasingly rely on sophisticated risk management tools in a complex economic environment. Operating cash flow for 2025 reached $988 million, providing ample flexibility for both strategic investments and shareholder returns.
TransUnion's results contrast with some concerns about slowing credit demand, suggesting that lenders and other clients continue to invest in data infrastructure to navigate uncertain market conditions. The company's diversified business model across geographies and verticals has helped buffer it from sector-specific volatility.
"We expect 2026 to be another strong year, supported by stable trends and innovation-led commercial momentum," Cartwright said in prepared remarks, highlighting the company's investments in artificial intelligence and machine learning capabilities that are driving growth across its product portfolio.