First American Financial Net Income Surges 69% to $125.1M in Q1 2026

First American Financial Corporation (NYSE: FAF), a title insurance and settlement services provider, reported net income of $125.1 million for the quarter ended March 31, 2026, up 69% from $74.2 million in the same period last year. Diluted earnings per share rose to $1.21 from $0.71 a year earlier. Read more earnings reports.

Total revenue climbed 16% to $1.84 billion from $1.58 billion in the first quarter of 2025. The revenue gain came as the company reported title insurance and services revenue of $1.73 billion, up from $1.48 billion, while specialty insurance revenue rose to $109.8 million from $107.8 million.

Labor and related expenses increased to $568.2 million from $506.7 million in the prior-year quarter. Interest expense rose to $41.9 million from $35.2 million. Income tax expense was $37.0 million, up from $21.8 million a year earlier.

The company's total assets grew to $17.94 billion as of March 31, 2026, compared with $16.23 billion at the end of December 2025. Cash and cash equivalents stood at $2.44 billion, up sharply from $1.39 billion three months earlier.

Total liabilities increased to $12.42 billion from $10.70 billion at year-end 2025. Stockholders' equity edged down slightly to $5.49 billion from $5.50 billion. Retained earnings rose to $4.08 billion from $4.01 billion.

Operating cash flow swung positive to $5.6 million in the first quarter from negative $52.8 million a year earlier. Cash used in investing activities totaled $815.7 million, compared with $234.5 million in the prior-year period. Financing activities generated $1.86 billion in cash, up from $612.3 million.

The company's share count remained essentially flat at 102.1 million shares outstanding as of March 31, 2026, versus 102.0 million at the end of 2025. Weighted average diluted shares were 103.3 million for the quarter, down from 104.2 million a year ago.

*As of March 31, 2025