Experian (EXPGY) AI Stock Analysis

Experian

(Other OTC:EXPGY)

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Rating:82Outperform

Price Target:$42.00▲(4.96% Upside)

Action:reiterated

Date:08/20/26

The overall score is driven primarily by Experian’s strong and improving financial performance—characterized by steady revenue and earnings growth, high margins, robust returns on equity, and solid free cash flow—supported by upbeat guidance for continued revenue, EPS, and margin expansion. Technicals are favorable, with the stock trading above key moving averages and showing positive but not overextended momentum, which reinforces the fundamental story rather than signaling speculative excess. Valuation sits at a reasonable to slightly premium P/E with a modest dividend yield, acceptable given the company’s quality and growth profile, while earnings-call headwinds around mortgage, contract roll-offs, and regional softness are meaningful but currently well contained relative to the strengths.

Positive Factors

Revenue GrowthBroad-based organic growth and FY'27 guidance indicate continuing demand across Experian's data, analytics, identity, and consumer services. Sustained expansion supports operating leverage, reinforces client relationships, and provides a durable base for further investment in products and platforms.

Negative Factors

LeverageModerate-to-elevated leverage reduces financial flexibility relative to a lower-debt profile. Debt service and refinancing needs can compete with investment, acquisitions, and shareholder returns, while a weaker operating environment could make balance-sheet repair more important over the coming quarters.

Experian Key Performance Indicators (KPIs)

Revenue by SegmentAnalyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus or potential vulnerabilities.

Chart Insights

Data provided by:

The Fly

Experian (EXPGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $35.40B
Dividend Yield: 1.74%
Average Volume (3M): 195.23K
Price to Earnings (P/E): 24.2
Beta (1Y): 0.87
Revenue Growth: 12.72%
EPS Growth: 29.51%
Country: US
Employees: 25,200
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

Experian Business Overview & Revenue Model

Company Description

Experian plc is a global technology firm that delivers services through two primary divisions: Business-to-Business and Consumer Services. For its business clients, the company offers specialized data analytics to help identify and better understand...

How the Company Makes Money

Experian primarily makes money by selling data-driven products and subscriptions to businesses and consumers, with revenues generally tied to recurring service contracts, usage-based transaction volumes, and platform/software access. Key revenue stre...

Experian Earnings Call Summary

Earnings Call Date:May 19, 2026(Q4-2026)|% Change Since:11.79%|Next Earnings Date:Nov 17, 2026

Earnings Call SentimentPositive

The call emphasizes a strong, record financial year with broad-based revenue growth, margin expansion, robust cash generation, significant strategic progress on cloud migration, AI initiatives and platform adoption, and active capital returns. Near-term headwinds include the wind-down of legacy data breach contracts, mortgage volume sensitivity, short-term acquisition and transition-related margin pressures, and some regional B2B softness. Overall, positives around execution, AI-led TAM expansion, platform momentum and capital discipline materially outweigh the manageable challenges highlighted.

Positive Updates

Record Financial Performance

FY'26 was a record year: revenue from ongoing activities up 13% at actual rates (11% constant) with organic revenue growth of 8% for the year (9% in Q4). Benchmark EBIT grew 15% (13% constant) to over $2.4bn and Benchmark EPS rose 15% (13% constant).

Negative Updates

Data Breach Contract Wind-Down and Partner Solutions Volatility

Two large long-term data breach contracts are rolling off, creating near-term volatility in Partner Solutions. The contracts represented around $20m of quarterly revenue, with approximately half dropping out in Q4 and the remainder reducing in early FY'27; Partner Solutions was modestly down for the year.

Company Guidance

Experian guided FY'27 to total reported revenue growth of 8–11% (organic 6–8%, with completed acquisitions contributing ~1 percentage point) and another year of double‑digit Benchmark EPS growth, with Benchmark EBIT margin progression of ~50 basis points at constant exchange rates. Management expects foreign‑exchange to be a 1–2% benefit to revenue and EBIT, net interest of $250–260m, a Benchmark tax rate of ~26%, CapEx of about 8% of revenue, and Benchmark operating cash‑flow conversion above 90%. Weighted average number of shares is expected to be 880–885m during the year with a closing share count around 870m as the company executes a further $1bn buyback (adding to $1bn announced in January); guidance starts around the middle of the ranges and reflects headwinds from FICO mortgage royalties and the wind‑down of two large breach contracts.

Experian Financial Statement Overview

Summary

Experian delivers steady high single-digit revenue growth with rising operating profit and net income, attractive mid-teens to mid-20s margins, and strong mid-20s returns on equity supported by a balance sheet with moderate, improving leverage. Cash generation is solid with free cash flow trending closer to net income and consistently positive after investment needs, providing capacity for dividends, buybacks, and growth initiatives despite some year-to-year volatility. Segment and geographic KPIs show diversified revenue and EBIT with particular strength in North America and Decisioning, though decelerating organic growth in key segments and regional volatility highlight areas where management must sustain execution.

Income Statement

86Very Positive

Balance Sheet

82Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.47B	8.47B	7.52B	7.10B	6.62B	6.29B
Gross Profit	2.15B	3.27B	3.60B	3.42B	3.17B	2.98B
EBITDA	3.10B	3.03B	2.48B	2.42B	1.98B	2.23B
Net Income	1.51B	1.51B	1.17B	1.20B	770.00M	1.17B
Balance Sheet
Total Assets	14.29B	14.29B	12.89B	11.71B	10.86B	10.89B
Cash, Cash Equivalents and Short-Term Investments	359.00M	359.00M	390.00M	321.00M	209.00M	186.00M
Total Debt	5.57B	5.57B	5.02B	4.27B	4.10B	4.10B
Total Liabilities	8.71B	8.71B	7.80B	7.04B	6.90B	6.89B
Stockholders Equity	5.54B	5.54B	5.05B	4.63B	3.93B	3.97B
Cash Flow
Free Cash Flow	2.19B	2.20B	1.35B	1.11B	1.09B	1.29B
Operating Cash Flow	2.24B	2.25B	2.00B	1.75B	1.72B	1.80B
Investing Cash Flow	-1.35B	-1.35B	-1.85B	-1.10B	-948.00M	-1.12B
Financing Cash Flow	-955.30M	-956.95M	-62.00M	-551.00M	-722.00M	-687.00M

Experian Technical Analysis

Technical Analysis SentimentPositive

Last Price40.02

Price Trends

50DMA37.35Positive

100DMA36.79Positive

200DMA36.23Positive

Market Momentum

MACD1.01Negative

RSI61.91Neutral

STOCH35.48Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPGY, the sentiment is Positive. The current price of 40.02 is above the 20-day moving average (MA) of 37.32, above the 50-day MA of 37.35, and above the 200-day MA of 36.23, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 35.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXPGY.

Experian Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

EXPGY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPGY	82Outperform	$35.05B	24.23	27.49%	1.74%	12.72%	29.51%
ULS	75Outperform	$15.09B	29.78	37.55%	0.76%	6.61%	53.23%
RELX	74Outperform	$69.57B	23.75	125.53%	2.29%	5.77%	25.08%
CBZ	70Outperform	$3.01B	21.99	7.96%	―	3.74%	59.69%
EVTC	67Neutral	$1.88B	20.48	15.04%	0.63%	12.36%	-28.24%
FA	66Neutral	$3.71B	146.47	1.93%	―	32.89%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

EXPGY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
EXPGY	Experian plc (ADR)	40.02	-5.73	-12.53%
CBZ	CBIZ Inc	54.98	-0.11	-0.20%
EVTC	EVERTEC INC	31.54	3.37	11.95%
RELX	Relx PLC (ADR)	40.09	-2.92	-6.79%
FA	First Advantage Corporation	21.59	9.25	74.96%
ULS	UL Solutions Inc. Class A	74.76	-3.33	-4.27%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 22, 2026

Experian AI Stock Analysis