First American Financial (NYSE:FAF) Announces Earnings Results

Key Points

• First American reported Q2 EPS of $1.33, beating the $1.02 consensus, and revenue of $1.85 billion versus $1.80 billion, with a net margin of 8.34% and ROE of 11.92%.
• Shares fell about 0.7% to $66.43 despite the beat; the stock trades at a P/E of 11.05, a market cap of $6.8 billion, and a 12‑month range of $53.09–$71.47.
• Director Parker S. Kennedy purchased 44,841 shares (~$3.04M), increasing his holding by 21.7%, while analysts show a consensus Buy with an average target of $79 and heavy institutional ownership (≈89%).

First American Financial (NYSE:FAF - Get Free Report) announced its quarterly earnings results on Wednesday. The insurance provider reported $1.33 earnings per share for the quarter, beating analysts' consensus estimates 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 Trading Down 0.7%

NYSE:FAF traded down $0.48 on Wednesday, reaching $66.43. The stock had a trading volume of 987,524 shares, compared to its average volume of 1,061,639. The company has a 50-day moving average of $64.14 and a 200 day moving average of $63.26. The stock has a market cap of $6.80 billion, a P/E ratio of 11.05, a price-to-earnings-growth ratio of 0.68 and a beta of 1.28. First American Financial has a 12-month low of $53.09 and a 12-month high of $71.47.

Trending Headlines about First American Financial

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 news, Director Parker S. Kennedy acquired 44,841 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was bought at an average cost of $67.85 per share, with a total value of $3,042,461.85. Following the transaction, the director directly owned 251,552 shares in the company, valued at approximately $17,067,803.20. This represents a 21.69% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 3.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On First American Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FAF. Boston Partners increased its stake in shares of First American Financial by 8.9% in the third quarter. Boston Partners now owns 6,133,594 shares of the insurance provider's stock worth $393,690,000 after buying an additional 500,649 shares during the last quarter. AQR Capital Management LLC raised its holdings in First American Financial by 88.0% in the fourth quarter. AQR Capital Management LLC now owns 1,037,854 shares of the insurance provider's stock valued at $63,766,000 after acquiring an additional 485,731 shares in the last quarter. First Trust Advisors LP raised its holdings in First American Financial by 150.4% in the fourth quarter. First Trust Advisors LP now owns 620,703 shares of the insurance provider's stock valued at $38,136,000 after acquiring an additional 372,821 shares in the last quarter. Two Sigma Investments LP raised its holdings in First American Financial by 163.5% in the third quarter. Two Sigma Investments LP now owns 467,823 shares of the insurance provider's stock valued at $30,053,000 after acquiring an additional 290,310 shares in the last quarter. Finally, Focus Partners Wealth raised its holdings in First American Financial by 3,028.3% in the fourth quarter. Focus Partners Wealth now owns 239,974 shares of the insurance provider's stock valued at $14,744,000 after acquiring an additional 232,303 shares in the last quarter. 89.05% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

FAF has been the topic of a number of recent research reports. Wall Street Zen raised shares of First American Financial from a "hold" rating to a "buy" rating in a research report on Saturday, March 7th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of First American Financial in a research report on Friday, February 13th. Barclays raised shares of First American Financial from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $70.00 to $72.00 in a research report on Monday, April 6th. Weiss Ratings reissued a "buy (b-)" rating on shares of First American Financial in a research report on Friday, December 26th. Finally, Truist Financial boosted their target price on shares of First American Financial from $76.00 to $82.00 and gave the stock a "buy" rating in a research report on Tuesday, February 17th. Six analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has a consensus 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.

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