First American Financial Corporation Q2 2026 Earnings Recap

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.