A read channel component of a magnetic recording system employs equalization of a signal received from the magnetic recording channel, the equalization being modified depending upon the presence or absence of DC shifts in the signal. Equalization corrects for DC shifts, if present, prior to detection and decoding of servo data, such as servo address mark (SAM) and Gray code data. In a first implementation, a DC shift detector detects the presence or absence of DC shifts and modifies equalization in a predetermined manner. In a second implementation, filtering is applied to the signal to enhance equalization in the presence of DC shift, and both filtered and unfiltered signals employed for detection of the servo data.