First American Financial (FAF) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - First American Financial (FAF) reported a revenue of $2.05 billion for the quarter ended December 2025, marking a 21.6% increase year-over-year and exceeding the Zacks Consensus Estimate by 9.97% [1] - The earnings per share (EPS) for the quarter was $1.99, up from $1.35 in the same quarter last year, representing a surprise of 33.27% over the consensus estimate of $1.49 [1] Revenue Breakdown - Net investment income was reported at $161.8 million, slightly above the average estimate of $157.33 million, reflecting a year-over-year increase of 3.3% [4] - Agent premiums reached $789.5 million, surpassing the average estimate of $722.03 million, with a year-over-year growth of 13.1% [4] - Direct premiums and escrow fees totaled $789.4 million, exceeding the estimated $708.75 million, and showed a 17.3% increase compared to the previous year [4] - Information and other revenues amounted to $293.9 million, higher than the estimated $256.1 million, indicating a year-over-year growth of 20.6% [4] Stock Performance - Shares of First American Financial have returned 12.1% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]