First American Financial Beats Q2 Estimates, Announces $300M Buyback

First American Financial reported strong second-quarter results that exceeded analyst expectations, with revenue rising 14% to $1.84 billion and adjusted earnings per share reaching $1.53, above the $1.36 consensus. The company saw growth in its Title Insurance and Services segment, along with a 33% increase in commercial revenue and a 17% boost in investment income due to higher interest rates. CEO Mark Seaton highlighted the strength of the title and home warranty businesses despite a sluggish housing market, and the company launched a $300 million share buyback program, signaling confidence in an impending real estate market rebound. The stock responded positively, rising 7% after the earnings announcement, though it remains down year-to-date amid broader market gains. Investors are encouraged by the company's ongoing investments in technology, including data and AI, which are expected to sustain growth as the real estate cycle improves. Overall, First American's performance and strategic buybacks position it well to benefit from a strengthening real estate sector.