What is Zacks Research's Estimate for FAF Q3 Earnings?

Key Points

• Zacks Research raised its Q3 2026 EPS estimate for First American Financial to $1.83, up from $1.77. It also forecasts FY2026 EPS of $7.01 and maintains a “Hold” rating.
• First American’s latest quarter exceeded expectations, with EPS of $2.08 versus the $1.80 consensus and revenue of $2.11 billion, up 15% year over year.
• Analysts remain generally positive, with seven Buy ratings and one Hold rating, an average “Moderate Buy” consensus, and an average price target of $84.60; however, housing-market weakness and commercial real-estate risks remain potential headwinds.

First American Financial Corporation (NYSE:FAF - Free Report) - Investment analysts at Zacks Research boosted their Q3 2026 earnings per share estimates for shares of First American Financial in a note issued to investors on Wednesday, August 12th. Zacks Research analyst Team now forecasts that the insurance provider will earn $1.83 per share for the quarter, up from their previous forecast of $1.77. Zacks Research has a "Hold" rating on the stock. The consensus estimate for First American Financial's current full-year earnings is $7.02 per share. Zacks Research also issued estimates for First American Financial's Q4 2026 earnings at $1.77 EPS, FY2026 earnings at $7.01 EPS, Q1 2027 earnings at $1.27 EPS, Q3 2027 earnings at $1.95 EPS, FY2027 earnings at $7.32 EPS and FY2028 earnings at $7.35 EPS.

A number of other research analysts have also recently issued reports on the stock. Benchmark began coverage on shares of First American Financial in a report on Tuesday, July 21st. They issued a "buy" rating and a $85.00 price target for the company. Truist Financial upped their target price on First American Financial from $82.00 to $85.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Wall Street Zen lowered First American Financial from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Stephens restated an "overweight" rating and set a $84.00 price target on shares of First American Financial in a research report on Friday, June 12th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of First American Financial in a research note on Monday, July 20th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $84.60.

First American Financial Stock Performance

NYSE FAF opened at $73.92 on Friday. The company has a market cap of $7.55 billion, a PE ratio of 10.24, a P/E/G ratio of 0.68 and a beta of 1.22. The firm's 50 day moving average price is $70.64 and its 200-day moving average price is $67.33. First American Financial has a 52-week low of $56.20 and a 52-week high of $79.87.

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

Insider Activity

In other news, CAO Steven A. Adams sold 3,253 shares of the stock in a transaction dated Friday, July 24th. The shares were 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 directly owned 10,234 shares in the company, valued at $767,447.66. This represents a 24.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 3.50% of the stock is owned by insiders.

Institutional Trading of First American Financial

Several large investors have recently bought and sold shares of FAF. Duncker Streett & Co. Inc. raised its holdings in First American Financial by 616.4% in the 1st quarter. Duncker Streett & Co. Inc. now owns 437 shares of the insurance provider's stock valued at $26,000 after acquiring an additional 376 shares during the last quarter. Global Retirement Partners LLC boosted its holdings in shares of First American Financial by 1,107.5% during the 4th quarter. Global Retirement Partners LLC now owns 483 shares of the insurance provider's stock worth $30,000 after purchasing an additional 443 shares during the last quarter. Danske Bank A S purchased a new stake in shares of First American Financial in the third quarter valued at approximately $45,000. IFP Advisors Inc grew its position in shares of First American Financial by 568.8% in the fourth quarter. IFP Advisors Inc now owns 749 shares of the insurance provider's stock valued at $46,000 after purchasing an additional 637 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new stake in shares of First American Financial in the third quarter valued at approximately $52,000. Hedge funds and other institutional investors own 89.05% of the company's stock.

First American Financial News Roundup

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

• Positive Sentiment: Zacks Research raised its FY2026 EPS forecast to $7.01 from $6.64, while increasing its FY2027 estimate to $7.32 from $7.11 and FY2028 to $7.35 from $7.27. The firm also lifted estimates for several upcoming quarters, including Q3 2026 to $1.83 and Q3 2027 to $1.95. These upward revisions signal improving expectations for First American’s earnings trajectory.
• Positive Sentiment: The company’s commercial business, higher investment income and AI-related efficiency initiatives could support longer-term earnings growth. First American also trades at a relatively modest valuation, with a price-to-earnings ratio near 10 and a price-to-earnings-growth ratio of 0.68. FAF Stock Trading at a Discount to Industry at 1.30X: Time to Hold?
• Neutral Sentiment: First American’s latest reported quarter was strong: EPS of $2.08 exceeded the $1.80 consensus estimate, revenue rose 15% year over year to $2.11 billion, and revenue surpassed expectations. The current-year analyst consensus remains approximately $7.02 EPS, broadly consistent with Zacks’ revised $7.01 forecast.
• Negative Sentiment: Despite the improved forecasts, Zacks continues to rate FAF Hold. Housing-market weakness and commercial real-estate risks remain potential headwinds, which could limit the impact of the higher earnings estimates on the shares. Zacks analysis of First American Financial

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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