First American Financial Q3 revenue slightly misses estimates

First American Financial

21/10/2026 21:24

Overview
U.S. title insurer's Q3 revenue rose 5% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q3 rose to $1.78 from $1.70 a year earlier
Company raised annual dividend by 11%

Outlook
Company expects a lower-for-longer residential origination market due to higher mortgage rates
First American plans to roll out new AI-native title and settlement platforms

Result Drivers
COMMERCIAL BUSINESS - Co said growth in commercial business helped drive Q3 earnings, per CEO Mark Seaton
INVESTMENT INCOME - Higher interest income from investment portfolio contributed to increased Q3 investment income
HIGHER REVENUE PER ORDER - Increase in average revenue per direct title order, especially for commercial transactions, offset lower order volume

Company press release: ID:nBw36dD1Sa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$2.08 bln
$2.10 bln (4 Analysts)
Q3 EPS
 
$1.72
 
Q3 Net Income
 
$177 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for First American Financial Corp is $82.00, about 23.8% above its October 20 closing price of $66.26
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Oct 20 - Insurance firm Chubb Q3 net income rises 
Oct 19 - RLI Q3 revenue beats estimates on underwriting performance 
Oct 20 - Social inflation deepens pressure on US liability insurers: AM Best

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)