Shares of First American Financial (FAF) are soaring 5.92% 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, handily beating the analyst estimate of $1.35 and marking a 20.5% increase from the same period last year. The company's revenue surged 14% year-over-year to $1.84 billion, surpassing the expected $1.75 billion. This strong performance was primarily driven by exceptional results in the commercial and home warranty businesses.

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. Additionally, First American's operating cash flow grew 33.5% to $355 million compared to Q2 2024, supporting continued share repurchases and a steady dividend. The company's focus on technology innovation and digital transformation, including the rollout of new title and escrow platforms, appears to be paying off as First American positions itself for future growth in the real estate industry.