First American Financial Corporation

NYSE:FAF Stock Report

Market Cap: US$6.9b

First American Financial Past Earnings Performance

Past criteria checks 4/6

First American Financial's earnings have been declining at an average annual rate of -30.6%, while the Insurance industry saw earnings growing at 14.6% annually. Revenues have been declining at an average rate of 6.5% per year. First American Financial's return on equity is 12.2%, and it has net margins of 8.7%.

Key information

-30.57%

Earnings growth rate

-28.33%

EPS growth rate

Insurance Industry Growth8.02%
Revenue growth rate-6.53%
Return on equity12.25%
Net Margin8.73%
Next Earnings Update22 Jul 2026

Recent past performance updates

Recent updates

Narrative Update • Jun 16

FAF: Tech Verification And Governance Reforms Will Support Future Upside

Analysts have held their average price target for First American Financial steady at $86.20, citing largely unchanged fair value assumptions along with small adjustments to revenue growth, profit margin, and future P/E inputs in their models. What’s in the News for First American Financial First American Financial is facing structural pressures in its core title insurance business as AI powered startups introduce automated title search tools, increasing competition and putting pressure on traditional human title agent roles and margins.
Narrative Update • Jun 02

FAF: Governance Reforms And Buybacks Will Support Future Upside

Analysts have kept their $86.20 price target on First American Financial steady, citing only very small adjustments to revenue growth, profit margin expectations and the future P/E multiple in their updated models. What's in the News First American Financial reported first quarter 2026 operating earnings that beat estimates by 25.4%, with revenue up 16.2% on direct premiums, escrow fees, and other revenues, according to recent earnings coverage.
Narrative Update • May 14

FAF: Governance Reforms Will Support Future Upside

Analysts have trimmed their price target on First American Financial slightly from $86.75 to $86.20, pointing to updated assumptions for revenue growth, profit margins, the discount rate, and future P/E as the key drivers behind the adjustment. What's in the News From January 1, 2026 to April 22, 2026, First American Financial repurchased 852,208 shares, representing 0.84% of its shares, for US$51 million, completing the buyback authorized on July 23, 2025 (Key Developments).
Narrative Update • Apr 27

FAF: Governance Reforms And Buybacks Will Support Future Upside

Analysts have raised their price target on First American Financial from $82.00 to $86.75, citing updated assumptions related to fair value, profit margins and future P/E expectations. What's in the News From January 1, 2026 to April 22, 2026, First American Financial repurchased 852,208 shares, about 0.84% of its stock, for US$51 million under the buyback announced on July 23, 2025 (company filing).
Seeking Alpha • Apr 24

First American Financial: Strong Earnings Power Ahead Of A Housing Recovery

Summary First American Financial is undervalued, with the market overlooking its operating leverage, tech investments, and diversified earnings base. FAF's Q1'26 adjusted EPS rose 58% YoY, driven by commercial strength, banking segment growth, and early benefits from AI and automation. Technology initiatives like Endpoint and AI-assisted tools are structurally reducing costs, positioning FAF for significant margin expansion as volumes recover. I maintain a 'Buy' rating on FAF, citing a 3.2% yield, disciplined capital allocation, and double-digit total return potential as the cycle turns. Read the full article on Seeking Alpha
Narrative Update • Apr 12

FAF: Governance Reforms And Stable P E Will Support Future Upside

Analysts have increased their price target for First American Financial to $82.00 from $81.60, reflecting updated assumptions around fair value and a slightly higher future P/E multiple. What's in the News At the annual meeting scheduled for May 12, 2026, shareholders will vote on proposed amendments to eliminate supermajority voting requirements in the Certificate of Incorporation (Key Developments).
Narrative Update • Mar 28

FAF: Stable Fundamentals And Steady P E Will Support Future Upside

Analysts kept their $81.60 price target for First American Financial unchanged, reflecting stable assumptions on the discount rate, revenue growth, profit margin, and future P/E in the latest update. What's in the News Reported an update on its share repurchase activity for the period from October 1, 2025 to December 31, 2025, with no shares repurchased and no cash deployed under the existing buyback authorization (Key Developments).
Narrative Update • Mar 14

FAF: Steady Fundamentals And Higher Future P E Will Support Upside Potential

Analysts have raised their price target on First American Financial from $79.40 to $81.60. This change reflects updated assumptions regarding fair value, discount rate, revenue growth, profit margin and future P/E, which modestly adjust their long-term outlook on the stock.
Narrative Update • Feb 28

FAF: Compliance Integration Will Support Future Upside Potential

Analysts have nudged their price target on First American Financial up by about $1, citing refreshed assumptions for fair value at $79.40, a small adjustment to the discount rate, slightly higher revenue growth and profit margin expectations, and a modestly lower future P/E multiple. What's in the News First American Data & Analytics reported that its RegsData regulatory compliance tool is now fully integrated into the MeridianLink Mortgage loan origination system.
Narrative Update • Feb 14

FAF: Integrated Compliance Tools Will Support Future Upside Potential

Analysts have nudged their price target on First American Financial slightly higher to $78.80 from $78.50, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margins, and future P/E expectations. What's in the News First American Data & Analytics has integrated its RegsData loan level regulatory compliance tool into the MeridianLink Mortgage loan origination system, giving lenders one click access to compliance checks within the LOS (Key Developments).
Narrative Update • Nov 10

FAF: Share Repurchases and Dividend Increase Will Drive Further Upside

Analysts have reaffirmed their price target for First American Financial at $78.50, citing stable company fundamentals along with minor adjustments to forecasted discount rates and growth metrics. What's in the News From July 1, 2025 to July 25, 2025, the company repurchased 597,726 shares, representing 0.58% of outstanding shares, for $33.62 million.
Narrative Update • Oct 27

Margins And Shareholder Returns Will Define The Coming Financial Landscape

Analysts have modestly raised their price target for First American Financial from $77 to $78.50. They cite revised expectations for lower revenue growth and profit margins, along with a slight reduction in the discount rate applied to future earnings.
Analysis Article • Jul 01

First American Financial Corporation (NYSE:FAF) Not Lagging Market On Growth Or Pricing

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 18x, you may...
Seeking Alpha • Apr 23

First American: A Solid Q1 And Relative Safe Haven From Tariffs (Upgrade)

Summary First American Financial Corporation reported solid Q1 results, beating consensus by $0.10, despite management turmoil and asset impairments. Elevated interest rates support net investment income but dampen housing transactions, leading to mixed performance; commercial activity shows strong growth. Mortgage rates are likely to stay high, limiting housing activity; commercial volumes and expense discipline provide some upside potential. FAF stock's secure 3.7% dividend yield and solid balance sheet make it a hold, with shares fairly valued at 13x earnings. Read the full article on Seeking Alpha
Seeking Alpha • Nov 11

First American Financial: Housing Market Malaise Outweighs Portfolio Repositioning

Summary First American Financial faces challenges from elevated mortgage rates and limited housing transactions, leading to a cautious outlook despite recent results. FAF's strategic portfolio repositioning boosts interest income by $67 million annually, offsetting rate cuts, but reduces book value by ~$222 million. The core business shows mixed results: improved commercial real estate activity and refinancing demand, but the residential side remains weak with declining mortgage applications. FAF trades at a premium multiple compared to competitors, with limited upside unless long-term interest rates decline sharply; thus, I maintain a sell rating. Read the full article on Seeking Alpha
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New Narrative • Aug 28

Sequoia Initiative And Tech Advances To Propel Revenue And Margin Growth

Introduction of the Sequoia project and Endpoint's platform could significantly enhance operational efficiency and potentially boost revenue through faster service and technological advancements.
Seeking Alpha • Aug 12

First American Financial: Too Much Optimism Around A Recovery

Summary First American Financial stock has underperformed due to high-interest rates limiting mortgage activity and demand for title insurance. Q2 earnings beat expectations despite a 2% decline in revenue, with weak mortgage activity and commercial orders pressuring margins. The recent stock rally may overstate the potential for interest rates to be beneficial, and its premium valuation compared to competitors argues for selling shares. Read the full article on Seeking Alpha
Seeking Alpha • May 16

First American Financial: Lack Of Near-Term Growth Leaves Shares With Limited Upside

Summary First American Financial's shares have underperformed due to high interest rates slowing housing transactions, negatively impacting the title insurance business. The company's Q1 financial results showed a decline in volume and pre-tax income in its title insurance unit. Despite some nascent signs of growth in the housing market, the overall outlook for FAF remains muted, making it an unappealing investment at 14x earnings. Read the full article on Seeking Alpha

Revenue & Expenses Breakdown

How First American Financial makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NYSE:FAF Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
31 Mar 267,7086732,4340
31 Dec 257,4526222,3720
30 Sep 257,0884822,3110
30 Jun 256,5151892,2600
31 Mar 256,2861592,1980
31 Dec 246,1281312,1760
30 Sep 245,872932,1420
30 Jun 245,9471952,1040
31 Mar 245,9822182,1090
31 Dec 236,0042172,1120
30 Sep 236,2592372,1680
30 Jun 236,6022412,2520
31 Mar 237,0182112,3550
31 Dec 227,6052632,4700
30 Sep 228,2944692,5510
30 Jun 229,0259122,5660
31 Mar 229,2291,1052,5360
31 Dec 219,2211,2412,4690
30 Sep 218,9991,2612,3790
30 Jun 218,3569982,3050
31 Mar 217,6998672,1680
31 Dec 207,0866962,0630
30 Sep 206,6646401,9890
30 Jun 206,4226451,9490
31 Mar 206,3116611,9440
31 Dec 196,2027071,9260
30 Sep 195,8915751,7660
30 Jun 195,7625391,7450
31 Mar 195,7545081,7470
31 Dec 185,7484741,7490
30 Sep 185,8126041,7480
30 Jun 185,7894741,7430
31 Mar 185,7534411,7300
31 Dec 175,7724231,7240
30 Sep 175,7952831,7970
30 Jun 175,7843691,7910
31 Mar 175,6913491,7730
31 Dec 165,5763431,6550
30 Sep 165,4283431,6430
30 Jun 165,3043121,6160
31 Mar 165,2663031,6060
31 Dec 155,1752881,5890
30 Sep 155,0742871,5660
30 Jun 154,9502921,5200

Quality Earnings: FAF has high quality earnings.

Growing Profit Margin: FAF's current net profit margins (8.7%) are higher than last year (2.5%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: FAF's earnings have declined by 30.6% per year over the past 5 years.

Accelerating Growth: FAF's earnings growth over the past year (324.1%) exceeds its 5-year average (-30.6% per year).

Earnings vs Industry: FAF earnings growth over the past year (324.1%) exceeded the Insurance industry 36.5%.

Return on Equity

High ROE: FAF's Return on Equity (12.2%) is considered low.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/18 08:23
End of Day Share Price 2026/06/18 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

First American Financial Corporation is covered by 11 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Terry MaBarclays
Bruce HartingBarclays
Ryan ByrnesBrean Capital Historical (Janney Montgomery)