Shares of First American Financial (FAF) surged 5.87% in pre-market trading, following the company's impressive second-quarter earnings report released after market close on Wednesday. The title insurance and settlement services provider significantly outperformed analyst expectations, demonstrating robust growth across its key business segments.

First American reported adjusted earnings per share of $1.53 for Q2 2025, surpassing the analyst estimate of $1.35 and marking a 20.5% increase from the same period last year. The company's revenue climbed 14% year-over-year to $1.84 billion, exceeding the expected $1.75 billion. This strong performance was driven by exceptional results in the commercial and home warranty businesses, despite mixed growth in the residential market.

Notably, the company's commercial revenue jumped 33% to $234 million, with the average revenue per U.S. commercial order increasing from $11,700 to $15,300. The Home Warranty segment also showed significant improvement, with its adjusted pretax margin rising to 20.7% from 15.2% a year ago. First American's focus on technology innovation and digital transformation, including the rollout of new title and escrow platforms, appears to be paying off as the company positions itself for future growth in the real estate industry.