TransUnion reported second-quarter revenue of $1.31 billion, beating Wall Street expectations by 1.8% and marking 14.9% year-on-year growth. The credit reporting company also exceeded profit forecasts, with adjusted earnings per share of $1.23, 6.9% above analyst estimates. However, the company's revenue guidance for the next quarter disappointed, coming in 0.6% below expectations at $1.30 billion. TransUnion raised its full-year revenue guidance to $5.14 billion and lifted its adjusted earnings per share forecast to $4.79. Operating margin improved to 19.7%, up from 16.9% in the same quarter last year. Free cash flow margin also increased to 23.3% from 18.8%. Chief executive Chris Cartwright said TransUnion "delivered another strong quarter of outperformance".

TransUnion and ScanSource represent contrasting fortunes in the business services sector, which has lagged the S&P 500 with an 8% gain versus 10.8% over six months. TransUnion, one of America's three major credit bureaus, shows strong momentum with 11.6% annual revenue growth over five years and projected 11.4% growth ahead. The company's 10.1% free cash flow margin provides resources for reinvestment. At $79.84 per share, it trades at 16.4x forward P/E. ScanSource presents challenges. The technology distributor's sales fell 4.9% annually over two years, with Wall Street forecasting modest 2.4% growth. Its poor 3.4% free cash flow margin limits investment flexibility. The sector faces pressure from AI disruption and tightening corporate budgets, though quality businesses can still deliver earnings growth. TransUnion trades at $15.4 billion market capitalisation, whilst ScanSource stands at $1.11 billion.

TransUnion has enhanced its mortgage credit report by adding TruVision Alternative Credit Attributes from its FactorTrust Alternative Lending Database. The enhancement provides lenders with additional financial signals beyond traditional credit data at no extra cost. The new attributes enable lenders to assess borrower stability earlier in the application process, starting at prequalification. This helps streamline workflows and focus resources on applications more likely to convert whilst reducing risk. According to Satyan Merchant, senior vice president at TransUnion, the enhancement gives lenders "a more complete and actionable view of borrower behaviour". The addition builds on TransUnion's previous innovations, including trended credit data introduced in 2013 and the TruVision Early Access Soft Check solution.