Equities Analysts Offer Predictions for FAF Q2 Earnings

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for First American Financial to $1.78 from $1.75 and kept a Strong-Buy rating on the stock.
• The company recently beat Q1 expectations, reporting $1.33 EPS versus the $1.06 consensus, while revenue of $1.85 billion also topped estimates and rose 16.2% year over year.
• Analyst sentiment remains constructive overall, with seven Buy/Strong Buy ratings and a consensus price target of $82.50, though the stock has also seen some mixed signals from other research notes.

First American Financial Corporation (NYSE:FAF - Free Report) - Stock analysts at Zacks Research lifted their Q2 2026 earnings per share estimates for shares of First American Financial in a research report issued to clients and investors on Wednesday, May 27th. Zacks Research analyst Team now expects that the insurance provider will post earnings of $1.78 per share for the quarter, up from their previous estimate of $1.75. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $6.83 per share. Zacks Research also issued estimates for First American Financial's Q4 2026 earnings at $1.80 EPS, FY2026 earnings at $6.74 EPS, Q1 2027 earnings at $1.31 EPS, Q2 2027 earnings at $2.00 EPS and FY2027 earnings at $7.18 EPS.

First American Financial (NYSE:FAF - Get Free Report) last released its earnings results on Wednesday, April 22nd. The insurance provider reported $1.33 EPS for the quarter, beating the consensus estimate of $1.06 by $0.27. The company had revenue of $1.85 billion during the quarter, compared to analysts' expectations of $1.80 billion. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.The business's revenue for the quarter was up 16.2% on a year-over-year basis. During the same period last year, the firm earned $0.84 EPS.

FAF has been the subject of several other reports. Weiss Ratings raised First American Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, April 22nd. Wall Street Zen cut First American Financial from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of First American Financial in a research note on Friday, February 13th. Barclays lifted their target price on First American Financial from $72.00 to $80.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. Finally, Truist Financial lifted their target price on First American Financial from $82.00 to $85.00 and gave the company a "buy" rating in a research note on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating and six have assigned a Buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $82.50.

First American Financial Stock Performance

NYSE FAF opened at $67.61 on Thursday. The stock has a fifty day moving average of $64.91 and a 200-day moving average of $64.50. The stock has a market capitalization of $6.89 billion, a P/E ratio of 10.38, a price-to-earnings-growth ratio of 0.65 and a beta of 1.28. First American Financial has a 52 week low of $53.09 and a 52 week high of $71.47.

First American Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 8th will be paid a dividend of $0.55 per share. The ex-dividend date of this dividend is Monday, June 8th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.3%. First American Financial's payout ratio is 33.79%.

Insiders Place Their Bets

In related news, SVP Lisa W. Cornehl sold 5,823 shares of First American Financial stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $68.63, for a total transaction of $399,632.49. Following the completion of the sale, the senior vice president directly owned 29,635 shares of the company's stock, valued at $2,033,850.05. The trade was a 16.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Margaret M. Mccarthy sold 6,630 shares of First American Financial stock in a transaction on Friday, April 24th. The stock was sold at an average price of $70.59, for a total value of $468,011.70. Following the sale, the director directly owned 24,024 shares of the company's stock, valued at approximately $1,695,854.16. This trade represents a 21.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 3.50% of the stock is owned by insiders.

Institutional Investors Weigh In On First American Financial

A number of institutional investors have recently made changes to their positions in the stock. Boston Partners grew its stake in shares of First American Financial by 8.9% during the third quarter. Boston Partners now owns 6,133,594 shares of the insurance provider's stock worth $393,690,000 after purchasing an additional 500,649 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in First American Financial by 4,485,375.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,786,263 shares of the insurance provider's stock valued at $355,508,000 after acquiring an additional 5,786,134 shares during the period. Dimensional Fund Advisors LP grew its stake in First American Financial by 5.6% in the first quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider's stock valued at $279,529,000 after acquiring an additional 245,279 shares during the period. Capital Research Global Investors grew its stake in First American Financial by 3.3% in the fourth quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider's stock valued at $209,868,000 after acquiring an additional 109,242 shares during the period. Finally, Geode Capital Management LLC grew its stake in First American Financial by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 1,793,179 shares of the insurance provider's stock valued at $110,200,000 after acquiring an additional 19,752 shares during the period. 89.05% of the stock is owned by institutional investors and hedge funds.

About First American Financial

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.

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