UK’s Experian forecasts fiscal year 2026 revenue growth from expanded product offerings

Investing.com — Experian PLC (LON:EXPN) shares edged down 0.7% on Wednesday as the company reported its financial results, which were in line with consensus estimates.

The credit reporting giant announced a revenue of $7,507 million, slightly missing the consensus forecast of $7,513 million, and an EBITA of $2,107 million, which was just above the consensus of $2,099 million.

Despite a modest year-over-year EBITA margin increase of 50 basis points, the stock experienced a slight decline.

The company’s organic revenue growth for the fourth quarter was solid at 7%, or 9% excluding data breach services, meeting the forecasts and contributing to a full-year growth of 7%.

Experian’s reported revenue growth of 8% included no contribution from mergers and acquisitions and a 1% negative impact from foreign exchange movements.

The company’s free cash flow remained robust at $1,411 million, and net debt ended at $4,684 million, reflecting substantial spending on mergers and acquisitions, including the completion of the Clearsale acquisition on April 1st.

Looking forward, Experian provided guidance for the fiscal year 2026, projecting 6-8% organic revenue growth, which aligns with the conservative expectations of analysts, and anticipates EBITA margin expansion in line with its medium-term framework.

The company expects a 30 basis point impact from M&A activities but still sees a potential organic expansion of 60-80 basis points, aiming for a midpoint EBITA margin of 28.5%.