First American Financial (FAF) stock surged 6.58% in after-hours trading on Wednesday, following the release of its impressive second-quarter results that exceeded analyst expectations and the announcement of a new share repurchase program.

The company reported adjusted earnings per share of $1.53 for the quarter ended June 30, significantly surpassing the mean analyst estimate of $1.36. Revenue also beat expectations, climbing 14.2% year-over-year to $1.84 billion, compared to the anticipated $1.75 billion. The strong performance was driven by growth across multiple segments, with the Title Insurance and Services segment revenues increasing by 13% due to higher average revenue per order and more closed orders. Notably, commercial revenues saw a substantial 33% rise, primarily attributed to increased average revenue per order.

Adding to the positive sentiment, First American Financial announced a new $300 million share repurchase authorization, signaling confidence in the company's financial position and future prospects. The company also highlighted its expectation of productivity improvements from investments in data, technology, and AI, positioning itself to outperform in the next real estate cycle. With these strong results and forward-looking initiatives, First American Financial appears well-positioned for continued growth, despite the challenges faced in the broader real estate market.