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Earnings analysis · 10-Q

FAF earnings analysis

Filed October 22, 2026 · Our reading of the company's report

The latest report

First American reported Q3 revenue of $2.085 billion and diluted EPS of $1.78, with revenue up year over year but down sequentially and EPS below both the $1.85 consensus estimate and prior-year level. Commercial growth…

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First American reported Q3 revenue of $2.085 billion and diluted EPS of $1.78, with revenue up year over year but down sequentially and EPS below both the $1.85 consensus estimate and prior-year level. Commercial growth and higher investment income supported results, but residential order declines, weaker Home Warranty and Corporate performance, and higher mortgage rates weighed on earnings. The filing provides no quantitative guidance, while management expects a lower-for-longer residential origination market. Risk-factor disclosures state there were 0 material changes from the prior filing.

Read the original on SEC.gov

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Apr 2026 Oct 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$1.78

What stood out

  • Revenue grew year over year

    Q3 revenue was $2.085 billion, down approximately 0.7% from $2.10 billion in Q2 2026 but up approximately 6.4% from $1.96 billion in Q3 2025.

  • EPS declined and missed estimates

    Diluted EPS was $1.78, below the $1.85 consensus estimate by $0.07, and down from $2.12 in Q2 2026 and $1.84 in Q3 2025.

  • Dividend increased 11%

    The company increased its dividend by 11%, supporting shareholder returns despite the quarterly earnings decline.

  • Substantial buyback capacity remains

    As of September 30, 2026, the company had repurchased $55.5 million of stock under its $300.0 million authorization, leaving $244.5 million available.

What to watch

  • Residential market weakness

    Residential order volumes declined as mortgage rates increased, and management expects a lower-for-longer residential origination market. Q3 diluted EPS of $1.78 was $0.07 below the $1.85 consensus estimate.

  • Earnings momentum weakened

    Q3 diluted EPS of $1.78 fell approximately 16.0% sequentially from $2.12 and approximately 3.3% year over year from $1.84, indicating pressure on earnings conversion.

  • Unhedged interest-rate exposure

    Interest-rate exposure remains the company’s primary market risk; the filing states there were 0 material changes in market risks since the 2025 Form 10-K and that derivative instruments are not used on any significant scale to hedge those risks.

Management's outlook

No quantitative revenue or EPS guidance was provided. Management expects a lower-for-longer residential origination market following the recent increase in mortgage rates; numeric outlook was deferred to the earnings release/call.

Earlier filings 2

10-Q · July 23, 2026

First American Financial produced a strong Q2, with revenue up 15.0% year over year to $2.117 billion and diluted EPS up to $2.12 from $1.41. Title Insurance and Services drove the result, as 16.9% revenue growth and…

10-Q · April 23, 2026

First American reported Q1 2026 revenue of $1,838.0 million, up $255.7 million or 16.2% year-over-year, and diluted EPS of $1.21, up from $0.71 in Q1 2025. Growth was driven primarily by the Title Insurance and Services…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.