Zacks Research Has Bullish Forecast for FAF Q3 Earnings

First American Financial Corporation (NYSE:FAF) – Research analysts at Zacks Research raised their Q3 2026 EPS estimates for First American Financial in a note issued to investors on Monday, September 28th. Zacks Research analyst Team now forecasts that the insurance provider will post earnings of $1.87 per share for the quarter, up from their prior forecast of $1.85. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for First American Financial’s current full-year earnings is $7.12 per share. Zacks Research also issued estimates for First American Financial’s Q4 2026 earnings at $1.80 EPS, FY2026 earnings at $7.08 EPS, Q2 2027 earnings at $2.06 EPS, Q3 2027 earnings at $2.01 EPS, Q4 2027 earnings at $2.10 EPS, FY2027 earnings at $7.45 EPS and FY2028 earnings at $7.48 EPS.

Several other research firms have also commented on FAF. Stephens reiterated an “overweight” rating and issued a $84.00 target price on shares of First American Financial in a research note on Friday, June 12th. Keefe, Bruyette & Woods raised their price target on First American Financial from $84.00 to $86.00 and gave the stock an “outperform” rating in a research note on Friday, July 24th. Barclays lifted their price target on First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of First American Financial in a research note on Monday, July 20th. Finally, Benchmark assumed coverage on shares of First American Financial in a report on Tuesday, July 21st. They set a “buy” rating and a $85.00 price objective 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 stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $84.60.

First American Financial Stock Down 4.8%

Shares of First American Financial stock opened at $60.95 on Tuesday. First American Financial has a fifty-two week low of $56.20 and a fifty-two week high of $79.87. The business’s fifty day moving average is $72.31 and its two-hundred day moving average is $68.48. The firm has a market cap of $6.22 billion, a PE ratio of 8.44, a P/E/G ratio of 0.59 and a beta of 1.21.

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

First American Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 5th. Stockholders of record on Monday, September 28th will be issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Monday, September 28th. First American Financial’s dividend payout ratio (DPR) is 33.80%.

Insider Activity at First American Financial

In other news, CAO Steven Adams sold 3,253 shares of First American Financial stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $74.99, for a total value of $243,942.47. Following the transaction, the chief accounting officer directly owned 10,234 shares of the company’s stock, valued at $767,447.66. The trade was a 24.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 3.50% of the stock is currently owned by company insiders.

Institutional Trading of First American Financial

A number of institutional investors and hedge funds have recently bought and sold shares of FAF. BlackRock Inc. purchased a new stake in First American Financial during the second quarter worth approximately $643,570,000. Dimensional Fund Advisors LP boosted its position in First American Financial by 5.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider’s stock worth $279,529,000 after purchasing an additional 245,279 shares during the period. Capital Research Global Investors boosted its position in First American Financial by 3.3% during the 4th quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider’s stock worth $209,868,000 after purchasing an additional 109,242 shares during the period. Geode Capital Management LLC increased its holdings in First American Financial by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 1,793,179 shares of the insurance provider’s stock valued at $110,200,000 after purchasing an additional 19,752 shares in the last quarter. Finally, Reinhart Partners LLC. raised its position in First American Financial by 1.9% in the second quarter. Reinhart Partners LLC. now owns 1,553,234 shares of the insurance provider’s stock valued at $106,537,000 after purchasing an additional 28,534 shares during the period. Institutional investors and hedge funds own 89.05% of the company’s stock.

Key First American Financial News

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

• Positive Sentiment: Zacks Research raised its estimates for FAF’s third-quarter 2026 EPS to $1.87 from $1.85, fourth-quarter 2026 EPS to $1.80 from $1.78, and full-year 2026 EPS to $7.08 from $7.04. It also increased its forecasts for 2027 and 2028 earnings, including FY2027 EPS to $7.45 and FY2028 EPS to $7.48. These revisions suggest modestly improving expectations for the title insurer’s profitability. Zacks Research Has Optimistic Opinion of FAF Q3 Earnings
• Positive Sentiment: An article examines First American’s dividend increase and whether it strengthens the company’s capital-return story. A higher dividend could improve the stock’s appeal to income-focused investors, although the article does not indicate that the change alone is driving near-term trading. Does First American Financial Boosting Its Dividend Reframe the Capital Return Narrative?
• Neutral Sentiment: Zacks maintained a “Hold” rating on First American. It raised several longer-term forecasts, but the revisions were relatively small and do not represent a significant change in the investment view.
• Negative Sentiment: Zacks reduced its first-quarter 2028 EPS estimate to $1.19 from $1.23, partially offsetting the broader series of upward revisions. First American Financial analyst estimates
• Negative Sentiment: FAF traded lower alongside Radian Group, Fidelity National Financial and Kemper, indicating broad weakness in the insurance and financial-services group. Trading volume was more than twice the stock’s average, suggesting elevated investor activity and pressure from sector-wide selling. Insurance stocks trade down

About First American Financial

First American Financial Corporation (NYSE: FAF) provides title insurance, settlement services and related real estate transaction solutions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in title, liens and other issues affecting ownership or mortgage interests.

The company also offers escrow and closing services, title search and examination, property information, valuation, mortgage subservicing and other technology-enabled solutions for the real estate and mortgage industries.