Stewart Information Services (STC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 13% YoY to $900.7M; GAAP net income fell 32% to $30.3M and adjusted net income fell 12% to $41.2M. Adjusted diluted EPS was $1.33 vs. $1.64.

• Rising mortgage rates weakened residential activity, while commercial and agency growth supported results; priorities include expense efficiency, market share gains, and building a more resilient, higher-margin portfolio.

Financial highlights

• Q3 total revenue was $900.7M vs. $796.9M; adjusted revenue was $900.7M vs. $791.3M, up 14% YoY.

• Q3 pretax income was $45.6M vs. $61.2M; adjusted pretax income was $60.3M vs. $64.5M.

• Nine-month revenue rose 21% to $2,581.2M; GAAP net income was $84.5M vs. $79.3M and adjusted net income was $108.2M vs. $91.6M.

• Operating cash flow was $46.6M vs. $92.6M YoY, reflecting lower net income and timing of operating-liability payments.

Outlook and guidance

• Residential conditions are expected to weaken into next quarter; management plans to manage costs and investments while retaining resources to serve clients and pursue opportunities.

• Industry headwinds are expected to persist into next year, with continued focus on market share gains and disciplined operations.

• Real Estate Solutions margins are expected to remain near current levels for the next couple of quarters, then recover; at 4.1–4.2M existing-home sales, expected margins are 13%–14%.

• Title losses are expected to average in the mid-3% to 4% range over a year; AI initiatives are expected to have a robust financial impact in 18 months, with efficiencies potentially helping manage expenses over four to six quarters.