Equities Analysts Set Expectations for FAF Q1 Earnings

Key Points

• Zacks Research raised near‑term and medium‑term estimates — including Q1 2026 EPS to $1.05 (from $1.04) and FY2027/FY2028 to $6.83 and $7.48 respectively — signaling a stronger earnings outlook.
• Multiple brokerages have upgraded FAF or raised targets, leaving the stock with a consensus Buy rating and an average price target of $79.00.
• First American recently reported a meaningful beat (Q: $1.99 EPS vs $1.49 expected; revenue $2.0B, +21.6% YoY), saw insider buying (director purchased 44,841 shares), and pays a $0.55 quarterly dividend (≈3.3% yield).

First American Financial Corporation (NYSE:FAF - Free Report) - Investment analysts at Zacks Research raised their Q1 2026 earnings per share estimates for shares of First American Financial in a research note issued to investors on Monday, April 20th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings of $1.05 per share for the quarter, up from their previous estimate of $1.04. The consensus estimate for First American Financial's current full-year earnings is $6.37 per share. Zacks Research also issued estimates for First American Financial's Q2 2026 earnings at $1.72 EPS, Q3 2026 earnings at $1.83 EPS, Q4 2026 earnings at $1.76 EPS, FY2026 earnings at $6.36 EPS, Q1 2027 earnings at $1.22 EPS, Q2 2027 earnings at $1.80 EPS, Q3 2027 earnings at $1.85 EPS, Q4 2027 earnings at $1.96 EPS, FY2027 earnings at $6.83 EPS, Q1 2028 earnings at $1.30 EPS and FY2028 earnings at $7.48 EPS.

Several other equities research analysts have also commented on the company. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of First American Financial in a research note on Friday, February 13th. Weiss Ratings reiterated a "buy (b-)" rating on shares of First American Financial in a research note on Friday, December 26th. Stephens upgraded First American Financial from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $70.00 to $81.00 in a research note on Monday, March 2nd. Truist Financial boosted their target price on First American Financial from $76.00 to $82.00 and gave the stock a "buy" rating in a report on Tuesday, February 17th. Finally, Wall Street Zen upgraded First American Financial from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Six analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $79.00.

First American Financial Trading Up 0.4%

NYSE:FAF opened at $66.30 on Tuesday. First American Financial has a 12 month low of $53.09 and a 12 month high of $71.47. The stock has a 50 day moving average of $64.13 and a two-hundred day moving average of $63.24. The firm has a market cap of $6.78 billion, a P/E ratio of 11.03, a price-to-earnings-growth ratio of 0.68 and a beta of 1.28.

First American Financial (NYSE:FAF - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The insurance provider reported $1.99 EPS for the quarter, topping the consensus estimate of $1.49 by $0.50. First American Financial had a return on equity of 11.92% and a net margin of 8.34%.The company had revenue of $2 billion during the quarter, compared to analyst estimates of $1.80 billion. During the same period in the previous year, the business earned $1.35 EPS. First American Financial's quarterly revenue was up 21.6% on a year-over-year basis.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Louisiana State Employees Retirement System acquired a new position in First American Financial in the first quarter valued at approximately $1,779,000. Bar Harbor Wealth Management lifted its holdings in First American Financial by 3.0% in the first quarter. Bar Harbor Wealth Management now owns 139,682 shares of the insurance provider's stock valued at $8,421,000 after acquiring an additional 4,033 shares during the last quarter. Rockefeller Capital Management L.P. lifted its holdings in First American Financial by 9.8% in the fourth quarter. Rockefeller Capital Management L.P. now owns 12,252 shares of the insurance provider's stock valued at $753,000 after acquiring an additional 1,093 shares during the last quarter. Larry Mathis Financial Planning LLC acquired a new position in First American Financial in the fourth quarter valued at approximately $229,000. Finally, Corient Private Wealth LLC lifted its holdings in First American Financial by 3.9% in the fourth quarter. Corient Private Wealth LLC now owns 872,826 shares of the insurance provider's stock valued at $53,627,000 after acquiring an additional 32,507 shares during the last quarter. 89.05% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at First American Financial

In related news, Director Parker S. Kennedy bought 44,841 shares of the stock in a transaction dated Tuesday, February 17th. The shares were acquired at an average cost of $67.85 per share, for a total transaction of $3,042,461.85. Following the acquisition, 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 position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.50% of the stock is currently owned by corporate insiders.

First American Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 9th were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 3.3%. The ex-dividend date was Monday, March 9th. First American Financial's payout ratio is currently 36.61%.

Key Stories Impacting First American Financial

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

• Positive Sentiment: Zacks raised multiple forward estimates — including FY2027 to $6.83 (from $6.75) and FY2028 to $7.48 (from $7.42) — signaling stronger medium‑term earnings power that could boost investor confidence.
• Positive Sentiment: Zacks bumped several quarterly forecasts (notable raises: Q1 2026 to $1.05, Q3 2026 to $1.83, Q3 2027 to $1.85, Q4 2026 to $1.76, Q4 2027 to $1.96 and Q1 2028 to $1.30), implying better-than-expected operational trends across title and specialty insurance businesses.
• Neutral Sentiment: Zacks published a broader investor piece evaluating FAF as a dividend/growth stock, which may prompt yield‑focused investors to re‑examine the name. Are You Looking for a High-Growth Dividend Stock?
• Negative Sentiment: Zacks trimmed near‑term quarterly forecasts in two spots — Q2 2026 cut to $1.72 (from $1.79) and Q2 2027 cut to $1.80 (from $1.86) — which could weigh on short‑term sentiment if results or guidance track these softer expectations.

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.

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