What is Zacks Research’s Forecast for FAF Q3 Earnings?

First American Financial Corporation (NYSE:FAF) – Analysts at Zacks Research lifted their Q3 2026 EPS estimates for First American Financial in a note issued to investors on Wednesday, August 12th. Zacks Research analyst Team now anticipates that the insurance provider will earn $1.83 per share for the quarter, up from their prior estimate of $1.77. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for First American Financial’s current full-year earnings is $7.02 per share. Zacks Research also issued estimates for First American Financial’s Q4 2026 earnings at $1.77 EPS, FY2026 earnings at $7.01 EPS, Q1 2027 earnings at $1.27 EPS, Q3 2027 earnings at $1.95 EPS, FY2027 earnings at $7.32 EPS and FY2028 earnings at $7.35 EPS.

First American Financial (NYSE:FAF) last released its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.80 by $0.28. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. The firm had revenue of $2.11 billion during the quarter, compared to analysts’ expectations of $2.03 billion. During the same period last year, the business earned $1.53 earnings per share. First American Financial’s revenue was up 15.0% compared to the same quarter last year.

A number of other brokerages also recently issued reports on FAF. Stephens restated an “overweight” rating and set a $84.00 price target on shares of First American Financial in a report on Friday, June 12th. Keefe, Bruyette & Woods upped their price objective on First American Financial from $84.00 to $86.00 and gave the company an “outperform” rating in a report on Friday, July 24th. Wall Street Zen lowered First American Financial from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Weiss Ratings reissued a “buy (b)” rating on shares of First American Financial in a research note on Monday, July 20th. Finally, Benchmark assumed coverage on First American Financial in a research report on Tuesday, July 21st. They issued a “buy” rating and a $85.00 target price on the stock. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $84.60.

First American Financial Price Performance

NYSE:FAF opened at $73.92 on Friday. The company’s 50-day moving average is $70.64 and its two-hundred day moving average is $67.33. First American Financial has a 1-year low of $56.20 and a 1-year high of $79.87. The firm has a market capitalization of $7.55 billion, a price-to-earnings ratio of 10.24, a PEG ratio of 0.68 and a beta of 1.22.

Insiders Place Their Bets

In other First American Financial news, CAO Steven A. Adams sold 3,253 shares of the stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $74.99, for a total transaction of $243,942.47. Following the completion of the transaction, the chief accounting officer owned 10,234 shares of the company’s stock, valued at $767,447.66. This trade represents a 24.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 3.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On First American Financial

Large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in shares of First American Financial during the 2nd quarter worth approximately $643,570,000. Boston Partners lifted its stake in First American Financial by 8.9% during the third quarter. Boston Partners now owns 6,133,594 shares of the insurance provider’s stock worth $393,690,000 after purchasing an additional 500,649 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in First American Financial by 4,485,375.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,786,263 shares of the insurance provider’s stock worth $355,508,000 after purchasing an additional 5,786,134 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of First American Financial by 5.6% in the first quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider’s stock valued at $279,529,000 after buying an additional 245,279 shares in the last quarter. Finally, Capital Research Global Investors boosted its stake in shares of First American Financial by 3.3% in the fourth quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider’s stock valued at $209,868,000 after purchasing an additional 109,242 shares during the period. 89.05% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about First American Financial

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

• Positive Sentiment: Zacks Research raised its FY2026 EPS forecast to $7.01 from $6.64, while increasing its FY2027 estimate to $7.32 from $7.11 and FY2028 to $7.35 from $7.27. The firm also lifted estimates for several upcoming quarters, including Q3 2026 to $1.83 and Q3 2027 to $1.95. These upward revisions signal improving expectations for First American’s earnings trajectory.
• Positive Sentiment: The company’s commercial business, higher investment income and AI-related efficiency initiatives could support longer-term earnings growth. First American also trades at a relatively modest valuation, with a price-to-earnings ratio near 10 and a price-to-earnings-growth ratio of 0.68. FAF Stock Trading at a Discount to Industry at 1.30X: Time to Hold?
• Neutral Sentiment: First American’s latest reported quarter was strong: EPS of $2.08 exceeded the $1.80 consensus estimate, revenue rose 15% year over year to $2.11 billion, and revenue surpassed expectations. The current-year analyst consensus remains approximately $7.02 EPS, broadly consistent with Zacks’ revised $7.01 forecast.
• Negative Sentiment: Despite the improved forecasts, Zacks continues to rate FAF Hold. Housing-market weakness and commercial real-estate risks remain potential headwinds, which could limit the impact of the higher earnings estimates on the shares. Zacks analysis of First American Financial

About First American Financial

First American Financial Corporation is a leading provider of title insurance, settlement services and diversified real estate-related data and analytics. Headquartered in Santa Ana, California, the company serves customers throughout the United States as well as in Canada, Europe, Latin America and Asia. Its business is built on the underwriting capabilities of its title insurance operations combined with comprehensive closing and escrow services for homebuyers, sellers, mortgage lenders and real estate professionals.

The company’s title insurance segment issues policies that protect property owners and mortgage lenders against defects in titles, liens or encumbrances that can arise during real property transactions.