Zacks Research Issues Positive Outlook for FAF Earnings

Key Points

• Zacks Research raised its Q3 2026 EPS estimate for First American Financial to $1.87 from $1.85, while maintaining a “Hold” rating. Full-year estimates include $7.08 for 2026 and $7.45 for 2027.
• First American’s latest quarterly results exceeded expectations, with EPS of $2.08 versus the $1.80 consensus and revenue of $2.11 billion, up 15% year over year.
• The stock opened at $64.73 after falling 2.3%, while analysts maintained an overall “Moderate Buy” consensus with an $84.60 price target. The company also declared a quarterly dividend of $0.55 per share, representing a 3.4% yield.

First American Financial Corporation (NYSE:FAF - Free Report) - Investment analysts at Zacks Research upped their Q3 2026 earnings per share (EPS) estimates for First American Financial in a research note issued to investors on Monday, September 28th. Zacks Research analyst Team now forecasts that the insurance provider will post earnings per share of $1.87 for the quarter, up from their prior estimate of $1.85. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $7.11 per share. Zacks Research also issued estimates for First American Financial's Q4 2026 earnings at $1.80 EPS, FY2026 earnings at $7.08 EPS, Q2 2027 earnings at $2.06 EPS, Q3 2027 earnings at $2.01 EPS, Q4 2027 earnings at $2.10 EPS, FY2027 earnings at $7.45 EPS and FY2028 earnings at $7.48 EPS.

First American Financial (NYSE:FAF - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 EPS for the quarter, topping the consensus estimate of $1.80 by $0.28. First American Financial had a return on equity of 13.31% and a net margin of 9.33%.The company had revenue of $2.11 billion for the quarter, compared to analysts' expectations of $2.03 billion. During the same quarter in the prior year, the business earned $1.53 earnings per share. The business's revenue for the quarter was up 15.0% on a year-over-year basis.

FAF has been the topic of a number of other research reports. Weiss Ratings reissued a "buy (b)" rating on shares of First American Financial in a report on Monday, July 20th. Benchmark started coverage on shares of First American Financial in a research note on Tuesday, July 21st. They set a "buy" rating and a $85.00 price target on the stock. Stephens reissued an "overweight" rating and issued a $84.00 price target on shares of First American Financial in a report on Friday, June 12th. Keefe, Bruyette & Woods boosted their price objective on shares of First American Financial from $84.00 to $86.00 and gave the stock an "outperform" rating in a research report on Friday, July 24th. Finally, Barclays upped their price objective on First American Financial from $80.00 to $83.00 and gave the stock an "overweight" rating in a report on Tuesday, July 7th. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $84.60.

First American Financial Stock Down 2.3%

First American Financial stock opened at $64.73 on Tuesday. The stock has a 50-day simple moving average of $72.65 and a 200 day simple moving average of $68.49. First American Financial has a 12-month low of $56.20 and a 12-month high of $79.87. The stock has a market capitalization of $6.61 billion, a price-to-earnings ratio of 8.97, a P/E/G ratio of 0.61 and a beta of 1.21.

Hedge Funds Weigh In On First American Financial

Several institutional investors have recently modified their holdings of FAF. BlackRock Inc. acquired a new stake in shares of First American Financial during the second quarter worth $643,570,000. Dimensional Fund Advisors LP lifted its position in First American Financial by 5.6% in the 1st 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 in the last quarter. Capital Research Global Investors boosted its stake in First American Financial by 3.3% in the 4th quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider's stock worth $209,868,000 after purchasing an additional 109,242 shares during the period. Geode Capital Management LLC boosted its stake in First American Financial by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 1,793,179 shares of the insurance provider's stock worth $110,200,000 after purchasing an additional 19,752 shares during the period. Finally, Reinhart Partners LLC. increased its holdings in First American Financial by 1.9% during the 2nd quarter. Reinhart Partners LLC. now owns 1,553,234 shares of the insurance provider's stock worth $106,537,000 after purchasing an additional 28,534 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, CAO Steven Adams sold 3,253 shares of the company's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $74.99, for a total value of $243,942.47. Following the completion of the sale, the chief accounting officer owned 10,234 shares in the company, valued at approximately $767,447.66. This represents a 24.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 3.50% of the company's stock.

First American Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 5th. Investors of record on Monday, September 28th will be paid a dividend of $0.55 per share. The ex-dividend date of this dividend is Monday, September 28th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.4%. First American Financial's payout ratio is 30.47%.

Key Stories Impacting First American Financial

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

• Positive Sentiment: Zacks Research raised EPS estimates across multiple periods. Forecasts increased for Q3 and Q4 2026, FY2026, Q2-Q4 2027, FY2027 and FY2028. The largest annual revisions were FY2027 to $7.45 from $7.39 and FY2028 to $7.48 from $7.43, indicating slightly improved expectations for First American’s earnings trajectory. Zacks nevertheless maintains a “Hold” rating. Zacks Research estimates for First American Financial
• Positive Sentiment: Dividend policy may strengthen the capital-return story. A report examines whether First American’s dividend increase can improve investor perceptions of the company’s shareholder-return strategy. A higher dividend could support the stock’s appeal, particularly given its relatively low valuation, although the article provides limited additional detail. Does First American Financial Boosting Its Dividend Reframe the Capital Return Narrative?
• Negative Sentiment: Housing-price growth remains below its long-term average. First American Data & Analytics reported that U.S. house-price growth has remained below the long-term average for a 17th consecutive month. Persistently soft housing conditions can weigh on home-sale transactions and title-insurance activity, creating a fundamental concern for First American’s core business. U.S. House Price Growth Remains Below Long-Term Average

First American Financial Company Profile

First American Financial Corporation NYSE: FAF provides title insurance, settlement services and risk solutions for real estate transactions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in ownership records, liens and other title-related issues.

The company also offers escrow and closing services, real estate data and analytics, valuation products, and technology solutions designed to support mortgage lenders, real estate professionals, homebuilders and commercial property participants.

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