The 27% EPS miss combined with management's explicit warning of continued industry headwinds and declining operating cash flow suggests further downside risk. Monitor the Q4 earnings call for any guidance revision or restructuring actions as housing market conditions deteriorate.
Price Chart
Executive Summary
Stewart Information Services reported Q3 2026 GAAP diluted EPS of $0.98 and adjusted diluted EPS of $1.33, a significant miss vs the $1.82 consensus estimate. Total revenues of $900.7M grew 13% YoY but net income fell 32% to $30.3M, driven by title segment pretax income declining 23% and operating cash flow halving to $46.6M. Management cited increased industry headwinds expected to continue into next year.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.98 vs $1.55 YoY; adjusted diluted EPS $1.33 vs $1.64 YoY
- Total revenues $900.7M (+13% YoY, +14% adjusted)
- Net income attributable to Stewart $30.3M vs $44.3M YoY (-32%)
- Title segment pretax income $47.5M vs $62.0M YoY (-23%)
- Adjusted pretax margin declined to 6.7% from 8.1% YoY
- Operating cash flow $46.6M vs $92.6M YoY (-50%)
- CEO stated 'increased industry headwinds that we anticipate will continue into next year'
- Diluted share count increased to 30.98M from 28.49M YoY (+8.7%)
Financial Impact
Adjusted EPS of $1.33 missed consensus of $1.82 by 26.9%; net income declined $14M YoY; operating cash flow halved
Risk Factors
- Continued housing market weakness reducing title order volumes
- Further margin compression from rising costs and competitive pricing
- Potential goodwill impairment if RES segment growth slows post-MCS acquisition
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-117852 |
| Document: tm2628060d1_8k.htm | 0001104659-26-117852 |
| Document: 0001104659-26-117852-index-headers.html | 0001104659-26-117852 |
| Document: 0001104659-26-117852-index.html | 0001104659-26-117852 |
| Document: 0001104659-26-117852.txt | 0001104659-26-117852 |
| 8-K Data (Synthetic) | 0001104659-26-117852 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | Insider Cluster | $43.47 | awaiting T+1 | — | $43.48 (+0.02%) |
Oct 26, 2026 1d ago | Insider Cluster | $43.51 | awaiting T+1 | — | $43.48 (−0.07%) |
Oct 21, 2026 6d ago | 8-K | $49.24 $44.07 | ▲ +10.50% | ▲ +9.98% | $43.48 (+11.70%) |
Aug 31, 2026 8w ago | 8-K | $68.65 $68.61 | ▼ −0.06% | ▲ +0.63% | $43.48 (−36.66%) |
Apr 22, 2026 26w ago | 8-K | $70.94 $71.67 | ▲ +1.03% | ▲ +0.24% | $43.48 (−38.71%) |
Mar 25, 2026 30w ago | DEFA14A | $59.38 $59.06 | ▼ −0.54% | ▲ +1.14% | $43.48 (−26.78%) |
US Market Status
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