Zacks Research Has Pessimistic View of FAF FY2026 Earnings

First American Financial Corporation (NYSE:FAF) – Equities researchers at Zacks Research lowered their FY2026 earnings per share (EPS) estimates for shares of First American Financial in a research note issued on Wednesday, June 24th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings per share of $6.72 for the year, down from their previous forecast of $6.74. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for First American Financial’s current full-year earnings is $6.81 per share. Zacks Research also issued estimates for First American Financial’s Q4 2026 earnings at $1.78 EPS, Q3 2027 earnings at $1.94 EPS, Q4 2027 earnings at $1.90 EPS, FY2027 earnings at $7.17 EPS and FY2028 earnings at $7.34 EPS.

First American Financial (NYSE:FAF) last announced its quarterly earnings data on Wednesday, April 22nd. The insurance provider reported $1.33 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.27. The firm had revenue of $1.85 billion for the quarter, compared to analyst estimates of $1.80 billion. First American Financial had a return on equity of 12.58% and a net margin of 8.73%.First American Financial’s quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.84 earnings per share.

A number of other equities analysts also recently issued reports on the stock. Weiss Ratings upgraded shares of First American Financial from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, April 22nd. Wall Street Zen lowered shares of First American Financial from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Keefe, Bruyette & Woods dropped their target price on shares of First American Financial from $87.00 to $84.00 and set an “outperform” rating for the company in a report on Thursday. Stephens reiterated an “overweight” rating and set a $84.00 price target on shares of First American Financial in a research report on Friday, June 12th. Finally, Truist Financial boosted their price target on First American Financial from $82.00 to $85.00 and gave the stock a “buy” rating in a research note on Friday, April 24th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $83.25.

First American Financial Stock Performance

Shares of NYSE FAF opened at $65.35 on Friday. The firm has a market capitalization of $6.66 billion, a P/E ratio of 10.04, a PEG ratio of 0.65 and a beta of 1.24. First American Financial has a one year low of $53.09 and a one year high of $71.47. The company’s fifty day moving average is $67.45 and its two-hundred day moving average is $64.84.

First American Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 8th were paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend was Monday, June 8th. First American Financial’s dividend payout ratio is presently 33.79%.

Insider Transactions at First American Financial

In other First American Financial news, SVP Lisa W. Cornehl sold 5,823 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $68.63, for a total transaction of $399,632.49. Following the completion of the transaction, the senior vice president directly owned 29,635 shares in the company, valued at approximately $2,033,850.05. This trade represents a 16.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Margaret M. Mccarthy sold 6,630 shares of First American Financial stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $70.59, for a total transaction of $468,011.70. Following the transaction, the director owned 24,024 shares of the company’s stock, valued at approximately $1,695,854.16. The trade was a 21.63% decrease in their position. The disclosure for this sale is available in the SEC filing. 3.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of FAF. Jones Financial Companies Lllp grew its holdings in First American Financial by 121.3% during the 1st quarter. Jones Financial Companies Lllp now owns 1,483 shares of the insurance provider’s stock valued at $97,000 after buying an additional 813 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of First American Financial by 10.8% in the first quarter. Goldman Sachs Group Inc. now owns 293,058 shares of the insurance provider’s stock valued at $19,233,000 after acquiring an additional 28,666 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of First American Financial by 7.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 414,146 shares of the insurance provider’s stock valued at $27,180,000 after acquiring an additional 27,600 shares in the last quarter. Jane Street Group LLC boosted its stake in shares of First American Financial by 182.5% during the first quarter. Jane Street Group LLC now owns 67,572 shares of the insurance provider’s stock valued at $4,435,000 after acquiring an additional 43,651 shares during the last quarter. Finally, Focus Partners Wealth increased its position in First American Financial by 11.3% during the 1st quarter. Focus Partners Wealth now owns 4,282 shares of the insurance provider’s stock worth $281,000 after purchasing an additional 435 shares in the last quarter. 89.05% of the stock is currently owned by institutional investors and hedge funds.

First American Financial News Roundup

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

• Positive Sentiment: Keefe, Bruyette & Woods kept an outperform rating on First American Financial and said the stock still implies meaningful upside, even after cutting its price target from $87 to $84. Keefe, Bruyette & Woods lowers price target on First American Financial
• Positive Sentiment: Zacks Research’s long-term forecasts still point to earnings growth, with FY2027 EPS estimated at $7.17 and FY2028 EPS at $7.34, suggesting the analyst still sees steady profitability ahead. Zacks Research earnings estimate updates for First American Financial
• Neutral Sentiment: Zacks Research also published articles highlighting FAF as a top dividend stock and a strong momentum stock, which may support investor interest but do not represent fresh company-specific catalysts. FAF top dividend stock article FAF strong momentum stock article
• Negative Sentiment: Zacks Research lowered near-term earnings estimates across multiple periods, including Q4 2026, FY2026, Q3 2027, Q4 2027, Q1 2028, and FY2028. Even though the reductions were small, repeated estimate cuts can signal softer expectations and contribute to a weaker stock tone. Zacks Research lowers First American Financial estimates

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.