FAF · First American Financial Corporation

First American Financial Corporation delivered a strong first quarter in 2026, with adjusted earnings per share rising 58% year-over-year to $1.33. The performance was primarily driven by the commercial business, which achieved record first-quarter revenue of $271 million, a 48% increase compared to the prior year. Total revenue reached $1.8 billion, up 16% year-over-year. The Title Insurance and Services segment generated $1.7 billion in revenue, with direct premiums and escrow fees increasing 21% due to a 13% rise in average revenue per order and a 9% increase in closed direct title orders. Investment income within the title segment grew 12% to $154 million, attributed to higher interest income from the investment portfolio and warehouse lending business. The segment's adjusted pretax margin expanded to 10.4% from 7.9% in the prior year. The Home Warranty segment saw modest growth, with revenue up 2% to $110 million and pretax margin improving to 23.5%. During the quarter, the company returned capital to shareholders by repurchasing approximately 556,000 shares for $33 million. Management highlighted the deployment of AI solutions across the company as a strategic initiative to leverage data assets and domain expertise. Looking ahead, the company acknowledged continued softness in the residential market but expressed confidence in its competitive positioning.