First American Financial (NYSE:FAF) Issues Quarterly Earnings Results, Beats Expectations By $0.31 EPS

First American Financial (NYSE:FAF) posted its quarterly earnings results on Wednesday. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.31, FiscalAI reports. The firm had revenue of $1.85 billion for the quarter, compared to analysts’ expectations of $1.80 billion. First American Financial had a net margin of 8.34% and a return on equity of 11.92%.

First American Financial Stock Down 0.7%

FAF stock traded down $0.48 during trading on Wednesday, hitting $66.43. 987,524 shares of the company’s stock traded hands, compared to its average volume of 1,061,639. First American Financial has a 52 week low of $53.09 and a 52 week high of $71.47. The stock has a fifty day moving average price of $64.14 and a two-hundred day moving average price of $63.26. The stock has a market capitalization of $6.80 billion, a price-to-earnings ratio of 11.05, a price-to-earnings-growth ratio of 0.68 and a beta of 1.28.

First American Financial News Roundup

Here are the key news stories impacting First American Financial this week:

• Positive Sentiment: Zacks Research raised several medium‑ and long‑term EPS forecasts (FY2026, FY2027, FY2028 and multiple quarterly increases), signaling modestly stronger forward earnings expectations that could support the stock over time. Zacks estimate changes
• Neutral Sentiment: The transcript of First American’s recent earnings call (Q2 2025) was published; investors will parse management’s tone on volume, margins and reserve/deployment plans for signals on near‑term performance. First American (FAF) Q2 2025 Earnings Transcript
• Neutral Sentiment: Market previews (MSN) flagged an upcoming earnings release and what to watch (revenue drivers, title‑insurance volumes, loss ratios and guiding commentary), keeping trading cautious ahead of new data. First American Financial (FAF) reports earnings tomorrow: What to expect
• Negative Sentiment: Offsetting some of the upbeat revisions, Zacks trimmed near‑term quarterly estimates (notably Q2 2026 and Q2 2027), which can increase short‑term uncertainty about volumes/margin timing and likely contributed to selling pressure today. Zacks estimate changes

Insiders Place Their Bets

In other First American Financial news, Director Parker S. Kennedy bought 44,841 shares of the stock in a transaction on Tuesday, February 17th. The stock was purchased at an average price of $67.85 per share, for a total transaction of $3,042,461.85. Following the completion of the purchase, the director directly owned 251,552 shares in the company, valued at approximately $17,067,803.20. This trade represents a 21.69% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 3.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On First American Financial

Several institutional investors have recently modified their holdings of the company. Quarry LP grew its position in shares of First American Financial by 14.0% during the fourth quarter. Quarry LP now owns 1,658 shares of the insurance provider’s stock worth $102,000 after acquiring an additional 203 shares during the last quarter. Treasurer of the State of North Carolina grew its position in shares of First American Financial by 0.5% during the second quarter. Treasurer of the State of North Carolina now owns 45,932 shares of the insurance provider’s stock worth $2,820,000 after acquiring an additional 220 shares during the last quarter. CIBC Private Wealth Group LLC grew its position in shares of First American Financial by 19.3% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,878 shares of the insurance provider’s stock worth $115,000 after acquiring an additional 304 shares during the last quarter. Annandale Capital LLC grew its position in shares of First American Financial by 0.3% during the third quarter. Annandale Capital LLC now owns 122,355 shares of the insurance provider’s stock worth $7,860,000 after acquiring an additional 365 shares during the last quarter. Finally, Empowered Funds LLC grew its position in shares of First American Financial by 9.2% during the fourth quarter. Empowered Funds LLC now owns 4,760 shares of the insurance provider’s stock worth $292,000 after acquiring an additional 403 shares during the last quarter. Institutional investors own 89.05% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Stephens raised shares of First American Financial from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $70.00 to $81.00 in a report on Monday, March 2nd. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of First American Financial in a report on Friday, December 26th. Barclays raised shares of First American Financial from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $70.00 to $72.00 in a report on Monday, April 6th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of First American Financial in a report on Friday, February 13th. Finally, Wall Street Zen upgraded shares of First American Financial from a “hold” rating to a “buy” rating in a research note on Saturday, March 7th. Six investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of “Buy” and an average target price of $79.00.

First American Financial Company Profile

First American Financial Corporation is a leading provider of title insurance, settlement services and diversified real estate-related data and analytics. Headquartered in Santa Ana, California, the company serves customers throughout the United States as well as in Canada, Europe, Latin America and Asia. Its business is built on the underwriting capabilities of its title insurance operations combined with comprehensive closing and escrow services for homebuyers, sellers, mortgage lenders and real estate professionals.

The company’s title insurance segment issues policies that protect property owners and mortgage lenders against defects in titles, liens or encumbrances that can arise during real property transactions.