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First American Financial: Commercial Momentum, AI Modernization, & Capital Discipline—The Multi-Driver Setup Investors Are Watching!

First American Financial Corporation reported solid financial results for the third quarter of 2025, revealing the resilience and adaptability of its business model amidst the fluctuating dynamics of the real estate market. On the positive side, First American’s adjusted earnings per share increased by 27% year-over-year to $1.70, driven by a robust performance in the commercial segment. The company’s commercial revenue surged by 29%, setting a new record for average revenue per order at just over $16,000 per closing. This growth was fueled particularly by strength in the industrial sector and multifamily asset classes. Moreover, First American’s investment income rose by 12%, underscoring its strategic diversification and ability to leverage its investment portfolio effectively as a countercyclical earnings driver. Refinancing revenue also saw a notable uptick of 28%, although it continues from a historic low base.