Here's What Key Metrics Tell Us About First American Financial (FAF) Q3 Earnings

Core Insights - First American Financial (FAF) reported a revenue of $1.98 billion for the quarter ended September 2025, marking a 40.7% increase year-over-year and exceeding the Zacks Consensus Estimate by 6.79% [1] - The earnings per share (EPS) for the quarter was $1.70, up from $1.34 in the same quarter last year, representing a surprise of 19.72% over the consensus estimate of $1.42 [1] Revenue Breakdown - Net investment income was reported at $163.8 million, surpassing the average estimate of $153.82 million by analysts, reflecting an 11.7% year-over-year increase [4] - Agent premiums reached $798.8 million, exceeding the estimated $720.65 million, with a year-over-year change of 16.8% [4] - Direct premiums and escrow fees totaled $708 million, slightly above the average estimate of $707.59 million, showing a 10.7% increase compared to the previous year [4] - Information and other revenues amounted to $282 million, surpassing the estimated $274.33 million, with a year-over-year growth of 13.9% [4] Stock Performance - Over the past month, shares of First American Financial have declined by 6.5%, contrasting with a 1.1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]