Equities Analysts Set Expectations for FAF Q3 Earnings

First American Financial Corporation (NYSE:FAF) – Equities researchers at Zacks Research upped their Q3 2026 earnings per share estimates for shares of First American Financial in a research report issued to clients and investors on Monday, September 28th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings per share of $1.87 for the quarter, up from their previous 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 $7.12 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) last issued its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.28. The business had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.03 billion. First American Financial had a return on equity of 13.31% and a net margin of 9.33%.The firm’s revenue for the quarter was up 15.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.53 earnings per share.

Other research analysts have also issued research reports about the stock. Stephens reaffirmed an “overweight” rating and issued a $84.00 target price on shares of First American Financial in a research note on Friday, June 12th. Benchmark assumed 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 for the company. Barclays increased their price objective on shares of First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Keefe, Bruyette & Woods raised their price objective on shares of First American Financial from $84.00 to $86.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of First American Financial in a report on Monday, July 20th. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $84.60.

First American Financial Stock Down 1.0%

Shares of FAF stock opened at $64.07 on Tuesday. The firm has a market cap of $6.54 billion, a price-to-earnings ratio of 8.87, a PEG ratio of 0.60 and a beta of 1.21. First American Financial has a 12 month low of $56.20 and a 12 month high of $79.87. The stock has a 50-day moving average price of $72.50 and a 200 day moving average price of $68.50.

First American Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, October 5th. Stockholders of record on Monday, September 28th will be paid a $0.55 dividend. 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 dividend payout ratio is 33.80%.

Insider Activity at First American Financial

In related news, CAO Steven Adams sold 3,253 shares of the stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $74.99, for a total value of $243,942.47. Following the sale, the chief accounting officer directly owned 10,234 shares in the company, valued at $767,447.66. This trade represents a 24.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 3.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of FAF. QRG Capital Management Inc. increased its stake in First American Financial by 53.9% in the second quarter. QRG Capital Management Inc. now owns 11,742 shares of the insurance provider’s stock valued at $805,000 after purchasing an additional 4,111 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in First American Financial in the second quarter worth $73,000. Paragon Capital Management Ltd bought a new position in shares of First American Financial during the second quarter worth $223,000. Nykredit A S bought a new position in shares of First American Financial during the second quarter worth $242,000. Finally, Amundi grew its holdings in shares of First American Financial by 26.5% in the 2nd quarter. Amundi now owns 12,177 shares of the insurance provider’s stock valued at $835,000 after buying an additional 2,549 shares during the period. Institutional investors own 89.05% of the company’s stock.

Key Headlines Impacting First American Financial

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

• Positive Sentiment: Zacks raised its earnings forecasts across multiple periods. Estimates increased for Q3 and Q4 2026, FY2026, Q2–Q4 2027, FY2027 and FY2028. The firm now projects $1.87 in Q3 2026 EPS, $7.08 for FY2026, $7.45 for FY2027 and $7.48 for FY2028, suggesting somewhat improved expectations for First American Financial’s profitability. Zacks also described its view of upcoming third-quarter earnings as optimistic. Zacks Research Has Optimistic Opinion of FAF Q3 Earnings
• Positive Sentiment: Dividend growth is drawing investor attention. A report examines whether First American Financial’s dividend increase can strengthen the company’s capital-return story. A higher dividend can support the stock’s income appeal, particularly given its relatively low valuation, although the article’s title does not provide details on the size or sustainability of the increase. Does First American Financial Boosting Its Dividend Reframe the Capital Return Narrative?
• Neutral Sentiment: Analysts remain cautious despite the estimate increases. Zacks continues to rate FAF “Hold,” and its current-year EPS estimate of $7.11 remains above its $7.08 FY2026 forecast. This indicates improving longer-term expectations but no clear recommendation for near-term outperformance.
• Negative Sentiment: Housing-market conditions remain a concern. U.S. house-price growth stayed below its long-term average for the 17th consecutive month, according to First American Data & Analytics. Slower home-price appreciation and potentially subdued real-estate activity could weigh on title-insurance demand and revenue growth. U.S. House Price Growth Remains Below Long-Term Average

About First American Financial

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.