| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 89 | 9.9x | 17.8x | Top tier | |
Growth | 80 | 22.6% | 7.1% | Top tier | |
Quality | 79 | — | — | Top tier | |
Safety | 37 | — | — | Bottom tier | |
Capital Return | 50 | 3.06% | 2.12% | Around median | |
Momentum | 69 | 13.0% | 2.9% | Top tier | |
Sentiment | 41 | 4 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
First American Financial Corporation operates in title and real estate settlement services, generating revenue from title insurance premiums and escrow fees, agency operations, information products and services, as well as investments in balances deposited with First American Trust. Its portfolio also includes ServiceMAC for mortgage servicing, a 1031 Exchange business, and a home warranty segment, giving it income sources tied to real estate transaction volumes, average revenue per transaction, deposit balances, and investment returns.
In fiscal Q2 2026, revenue according to EDGAR filings was approximately $2.1 billion, net income was $218.5 million, and diluted earnings per share were $2.12, equivalent to a net income margin of approximately 10.4%. Adjusted earnings were $2.08 per share, up 36% year over year, while adjusted revenue for the title segment reached $2 billion, up 14%, and its pretax margin was 15.7% on a GAAP basis and 14.0% on an adjusted basis.
Within the title segment in fiscal Q2 2026, agency revenue was $820 million, up 14%; commercial revenue was $314 million, up 34%; information and other revenue was $295 million, up 12%; and investment income was $164 million, up 11%. The home warranty segment recorded adjusted revenue of $112 million, up 1%, and an adjusted pretax margin of 20.2%, while net income increased from $125.1 million in fiscal Q1 2026 to $218.5 million in fiscal Q2 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $83, within a narrow range of $80 to $85, with the consensus rated "Buy." The average target is approximately 3.9% above the 52-week range high of $79.87, while the annual range extends to a low of $56.20. The target therefore assumes continued strength in commercial activity, deposit growth, and automation gains despite weakness in the housing market and higher operating expenses.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
FAF generates revenue primarily from title insurance and settlement and escrow services, in addition to agency revenue and information products. In fiscal Q2 2026, adjusted title segment revenue was $2 billion, including $820 million from agencies, $314 million from commercial activity, and $295 million from information and other operations. First American Trust added $164 million in investment income, while the home warranty segment recorded adjusted revenue of $112 million.
Commercial revenue increased 34% to $314 million, driven by a 31% increase in average revenue per order to $20,000. The company closed 14 transactions with premiums exceeding $1 million each, compared with 11 transactions a year earlier, with order growth across 10 of 11 asset classes. Data center revenue increased 147%, but growth also included development sites at 33%, multifamily properties at 23%, and retail at 59%.
Average First American Trust deposits were approximately $7.9 billion in fiscal Q2 2026, up 30% year over year. 36% of deposits originated outside the internal title business, including $1.7 billion from ServiceMAC and an average of $827 million from the 1031 Exchange solution. As a result of the larger portfolio, investment income increased 11% to $164 million, while investment income net of interest expense grew 8%.
Endpoint's automation rate increased from 30% in fiscal Q1 2026 to 34% in Q2, then reached 39% in July 2026. Sequoia increased its refinance automation rate from 35% to 40% and expanded its California coverage from 8 counties to 41 counties. For purchase transactions in covered counties, the platform provided an instant decision when an order was opened for approximately 16% of transactions, with deployment across California and Florida targeted by the end of 2026.
Weak existing-home sales led to a 3% decline in closed purchase orders in fiscal Q2 2026, while open purchase orders remained flat with no growth during the first three weeks of July 2026. Personnel costs increased 9% to $572 million, and other operating expenses rose 15% to $319 million, bringing the operating success ratio to 66% versus a 60% target. Title segment margin expansion in the second half of fiscal 2026 also depends on commercial activity whose volume is difficult to predict, particularly in Q4.
The analyst consensus rates FAF stock as "Buy," with an average price target of $83. Target estimates range from $80 to $85, a relatively narrow range, and the average is approximately 3.9% above the 52-week range high of $79.87. Achieving this valuation assumes continued growth in commercial activity, deposits, and automation, balanced against weakness in the housing market and a higher expense base.
