For the quarter ended December 2025, First American Financial (FAF) reported revenue of $2.05 billion, up 21.6% over the same period last year. EPS came in at $1.99, compared to $1.35 in the year-ago quarter.
The reported revenue represents a surprise of +9.97% over the Zacks Consensus Estimate of $1.86 billion. With the consensus EPS estimate being $1.49, the EPS surprise was +33.27%.
While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company’s underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock’s price performance.
Here is how First American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
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Revenues- Net investment income: $161.8 million compared to the $157.33 million average estimate based on two analysts. The reported number represents a change of +3.3% year over year.
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Revenues- Agent premiums: $789.5 million compared to the $722.03 million average estimate based on two analysts. The reported number represents a change of +13.1% year over year.
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Revenues- Direct premiums and escrow fees: $789.4 million versus $708.75 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +17.3% change.
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Revenues- Information and other: $293.9 million versus $256.1 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +20.6% change.
View all Key Company Metrics for First American Financial here>>>
Shares of First American Financial have returned +12.1% over the past month versus the Zacks S&P 500 composite’s -0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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This article originally published on Zacks Investment Research (zacks.com).