First American lifts dividend 11% as commercial title revenue climbs 21%

First American Financial raised its dividend 11% after a third quarter in which commercial title revenue and investment income grew while title order counts fell.

Net income was $177 million, or $1.72 a diluted share, down from $190 million, or $1.84, a year earlier, according to the earnings release the title insurer filed with an 8-K on Wednesday. Last year's quarter included $26 million of net investment gains. Adjusted EPS, which excludes investment gains and losses and purchase-related amortization, rose to $1.78 from $1.70.

Total revenue grew 5% to $2.1 billion.

"Continued growth in our commercial business and higher investment income drove our earnings this quarter," CEO Mark Seaton said in the release. He added that a recent increase in mortgage rates "reinforces our expectation for a lower-for-longer residential origination market."

Title business

Commercial revenues rose 21% to $297 million, and investment income in the Title Insurance and Services segment increased 11% to $169 million. The segment's pretax margin was 12.4%, compared with 12.9% a year earlier.

Title orders slowed. Open orders fell to 175,600 from 191,300, and closed orders fell to 134,900 from 141,800.

Seaton said the company will use the environment to roll out its new AI-native title and settlement platforms.

Shareholder returns

The board raised the common dividend 11% to an annual rate of $2.44 a share. First American repurchased $9 million of stock in the fourth quarter through Oct. 21.

By the numbers

• Total revenue: $2.1 billion, up 5%
• EPS: $1.72, vs. $1.84
• Adjusted EPS: $1.78, vs. $1.70
• Commercial revenue: $297 million, up 21%
• Annual dividend: $2.44 a share, up 11%

Sources

1. First American Financial Corporation, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0001193125-26-427848

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