First American Financial Corporation Earnings Recaps
Q3 2026
Oct 26, 2026
First American’s shares fell 2.1% after earnings, a roughly flat reaction. Results reflected a split market: commercial title activity was strong, while residential conditions remained pressured by affordability and higher mortgage rates; management expects that pattern to continue.
Key takeaways
- Adjusted EPS was $1.78, up 5% year over year.
- National Commercial Services posted its highest third-quarter revenue on record; commercial refinance premium revenue rose 49%, and eight of 11 asset classes grew year over year.
- Residential purchase revenue declined 3% and refinance revenue declined 1%. Management said mortgage rates had risen to 7.5% and expects a lower-for-longer residential origination environment.
- Title segment investment income grew 11%, with First American Trust investment income up 39%.
- Endpoint’s automation rate reached 42% in Q3, versus 30% in Q1. Sequoia completed 17% of California purchase transactions processed through Endpoint and 34% of California refinance transactions.
Q2 2026
Jul 26, 2026
Shares rallied 6.5% following Q2 results as revenue growth in Commercial and continued deposit expansion at First American Trust demonstrated solid operational momentum, offsetting mortgage headwinds.
Key takeaways
- Adjusted EPS rose 36% year-over-year to $2.80, driven primarily by strong Commercial segment performance.
- Commercial revenue increased 34%, setting a Q2 record, bolstered by 14 transactions exceeding $1 million in premium.
- Purchase revenue edged up 2% despite affordability challenges, while refinance revenue grew 18% due to a prior quarter’s mortgage rate dip.
- Average deposits surged 30% to $7.9 billion, with 36% sourced outside captive title business, highlighting diversification.
- AI initiatives and platform rollouts (Endpoint, Sequoia) are advancing automation and operational efficiency, with automation rates increasing from 30% to 34% in Q2.