First Advantage (NYSE:FA) Issues FY 2026 Earnings Guidance

First Advantage (NYSE:FA) updated its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 1.150-1.250 for the period, compared to the consensus estimate of 1.170. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.6 billion.

First Advantage Trading Down 1.5%

Shares of NYSE FA opened at $11.51 on Friday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The business’s 50 day moving average price is $13.16 and its 200-day moving average price is $14.19. First Advantage has a fifty-two week low of $8.82 and a fifty-two week high of $19.01. The company has a market cap of $2.00 billion, a price-to-earnings ratio of 383.67 and a beta of 1.17.

First Advantage (NYSE:FA) last announced its quarterly earnings results on Thursday, February 26th. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.04. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same period last year, the business earned $0.18 earnings per share. The firm’s revenue for the quarter was up 36.8% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. On average, sell-side analysts expect that First Advantage will post 0.74 earnings per share for the current year.

Analyst Upgrades and Downgrades

FA has been the subject of several research reports. JPMorgan Chase & Co. lowered their price objective on shares of First Advantage from $21.00 to $17.00 and set an “overweight” rating for the company in a research note on Friday, November 7th. Barclays dropped their price objective on First Advantage from $18.00 to $14.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, Zacks Research cut shares of First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $18.25.

Trending Headlines about First Advantage

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q4 earnings beat — First Advantage reported $0.30 EPS vs. consensus $0.26 and revenue grew ~36.8% year-over-year, signaling strong topline momentum and margin improvement. Read More.
• Positive Sentiment: $100M buyback and raised revenue ambition — Management outlined a $1.625B–$1.7B 2026 revenue target and authorized a $100M share buyback, which can support EPS and investor sentiment amid the company’s digital-identity growth narrative. Read More.
• Neutral Sentiment: FY2026 EPS guidance roughly in line — First Advantage set FY26 EPS of $1.150–$1.250 versus a consensus near $1.170; revenue guidance roughly meets or slightly exceeds Street expectations, so guidance is not a major surprise. Read More.
• Neutral Sentiment: Full earnings materials available — Management commentary, the earnings presentation and transcript are posted (useful for investors wanting color on digital-identity growth, margin levers and buyback timing). Read More. Read More.
• Negative Sentiment: Barclays trims price target — Barclays cut its target from $18 to $14 and assigned an “equal weight” rating; while the new $14 target still implies upside vs. current levels, the cut signals more cautious near-term analyst sentiment. Read More.

Institutional Trading of First Advantage

Large investors have recently made changes to their positions in the company. Alliancebernstein L.P. lifted its position in First Advantage by 724.5% during the 2nd quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock worth $87,311,000 after acquiring an additional 4,618,946 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in First Advantage by 4.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company’s stock valued at $202,757,000 after purchasing an additional 572,580 shares during the last quarter. Jane Street Group LLC purchased a new position in First Advantage during the 2nd quarter valued at about $7,107,000. Sunriver Management LLC increased its stake in shares of First Advantage by 13.2% during the 4th quarter. Sunriver Management LLC now owns 2,661,286 shares of the company’s stock worth $38,668,000 after purchasing an additional 310,672 shares in the last quarter. Finally, Cat Rock Capital Management LP raised its holdings in shares of First Advantage by 8.9% in the fourth quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock worth $48,571,000 after acquiring an additional 274,449 shares during the last quarter. 94.91% of the stock is owned by institutional investors and hedge funds.

About First Advantage

First Advantage is a global provider of background screening, identity verification and workforce risk management solutions. The company delivers a comprehensive suite of services that help employers verify candidate credentials, manage regulatory compliance and mitigate risk throughout the employee lifecycle. Its platform is built to integrate with leading human capital management and applicant tracking systems, enabling a seamless and scalable experience for organizations of all sizes.

The company’s core offerings include pre-employment and continuous background screening, digital identity verification, drug and health testing, and ongoing employee monitoring.