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Fidelity National Financial (FNF) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 6, 2026

Source: earnings call transcript

Executive summary

Fidelity National Financial Q2 FY26 — Strong Title Performance and F&G Growth

Fidelity National Financial reported a strong second quarter, driven by robust performance in its Title segment, which achieved industry-leading margins and significant commercial revenue growth. The F&G segment continued its strategic expansion, nearing $75 billion in AUM and growing book value per share. While strategic investments are expected to cause near-term margin compression in Title, the company remains focused on long-term growth through technology and operational leverage, with an eye on eventual residential market recovery.

Highlights

5

  • Title segment delivered adjusted pretax earnings of $448 million, up 33% YoY.

  • Achieved an industry-leading adjusted pretax title margin of 17.8%, an increase of 230 basis points YoY.

  • Commercial direct revenue reached $778 million in H1 2026, up 24% over H1 2025, with 29 transactions over $1 million in premiums in Q2.

  • F&G's gross AUM grew 8% YoY to $74.7 billion, and book value per share (ex-AOCI) increased 68% since 2020 acquisition to $45.93.

  • Daily purchase orders opened were up 3% YoY and refinance orders opened were up 16% YoY in Q2.

Concerns

4

  • Adjusted net earnings for the F&G segment decreased to $65 million in Q2 2026 from $89 million in Q2 2025, partly due to a reduced ownership stake.

  • Expects modest compression to adjusted pretax title margin in the second half of the year due to front-loaded expenses from strategic investments and recruiting.

  • Remains cautious on residential purchase and refinance activity for the remainder of the year due to elevated mortgage rates and housing market dynamics.

  • Cash and short-term liquid investments at the holding company decreased to $457 million at Q2 end, from $659 million at year-end 2025.

Guidance & targets

CategoryTargetConfidence
Interest and investment income (Title and Corporate segments)
$95 million to $100 million per quarter
medium materiality
High
Dividend income from F&G to Corporate segment
Approximately $28 million per quarter
medium materiality
High
Adjusted pretax title margin
Modest compression
high materiality
Medium
Commercial momentum
Continue
medium materiality
High
Residential purchase and refinance activity
Remain cautious
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Title
Delivered strong Q2 results with industry-leading adjusted pretax title margin. Performance driven by strength across commercial, residential, and agency businesses. Direct premiums increased 21% YoY, agency premiums 15% YoY, and escrow/title-related fees 13% YoY. Adjusted pretax earnings were up 33% YoY.
Adjusted pretax title margin: 17.8%Adjusted pretax title margin (Q2 2025): 15.5%Adjusted pretax title margin increase: 230 bpsDirect ops margin: >26%Agency business margin: 8%NCS units margin: <30%Loan subservicing margin: ~21%Home warranty margin: 18%ServiceLink margin: ~24%
$2.5 billion21% (direct premiums), 15% (agency premiums), 13% (escrow/title-related fees)—$448 million adjusted pretax earnings
F&G
Gross AUM before reinsurance reached $74.7 billion, up 8% YoY. Book value per share (ex-AOCI) grew 68% since 2020 acquisition. Reported strong gross sales of $2.7 billion, with core retail sales at a record $1.8 billion. Adjusted net earnings were $65 million, reflecting a 72% ownership stake.
Gross AUM before reinsurance: $74.7 billionGAAP equity (excluding AOCI): $6 billionBook value per share (excluding AOCI): $45.93Gross sales: $2.7 billionCore sales: $2 billionOpportunistic sales: $700 millionCore retail sales (indexed annuities and indexed life): $1.8 billionCore institutional sales (pension risk transfer): $200 millionNet sales: $1.5 billionOwnership stake: 72%
—8% (Gross AUM)—$65 million adjusted net earnings

FNF operating KPIs by quarter

FNF operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Assets under management (AUM) F&G Retained
$56.4B This includes retained assets under management of $56.4 billion, up 3% over the prior year. Source: earnings call transcript
$55.9B This includes retained assets under management of $55.9 billion. Source: earnings call transcript
-0.9%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
inHere Property Monitoringlaunch

Deals & partnerships

Peak Altitude Exploration of strategic alternatives for F&G's owned distribution investment.

Chris Blunt, CEO of Peak Altitude, has launched a formal process to explore strategic alternatives for Peak Altitude, which includes 4 owned distribution investments that generated $80 million of EBITDA for FY25.

Multiple unnamed companies Tuck-in acquisitions to expand personnel and market presence. 4x to 6x pretax profit

A handful of attractive tuck-in acquisitions, including a couple closed in July, primarily on the residential side but with some commercial mix, across multiple geographies including the West, Texas, and East markets.

Risks & headwinds

Modest compression to adjusted pretax title margin Second half of the year

Modest compression

Mitigation:Strategic investments in recruiting and acquisitions are front-loading expenses, but are expected to build the business for the long term. Management will look at staffing in relation to orders and manage expenses accordingly.

Cautious outlook on residential purchase and refinance activity Remainder of the year

Not quantified, but described as 'cautious'

Mitigation:The company is focused on operational leverage and technology/AI investments to drive efficiency, anticipating a recovery in residential activity once mortgage rates improve.

Potential regulatory pressure on pricing due to improved margins from technology Longer term

Not quantified, but acknowledged as a 'possibility'

Mitigation:Acknowledged that if industry margins rise significantly, regulatory pressure could emerge. However, the business is regulated at the state level, and market participants perform at different levels, making it complex to target one participant.

What to watch in Q3 FY26

Adjusted pretax title margin

H2 FY26
Current 17.8%
Target Monitor for 'modest compression'

Why it matters

Management guided for modest compression due to front-loaded expenses from strategic investments and recruiting, which could impact profitability.

We expect to see this near-term effect on our results, including some modest compression to adjusted pretax title margin in the second half of the year.

Find out whether FNF delivers this. Inve re-checks your case every morning.

Q&A highlights

Clarification on whether the expected modest margin compression in H2 '26 is relative to H1 or YoY, and the drivers behind it.

The compression is primarily relative to Q2, driven by the mix of direct/agency business, commercial performance, non-title businesses, and front-loaded expenses from strong recruiting and tuck-in acquisitions. Management will adjust staffing in relation to orders.

“I would say it's probably in relation to the second quarter primarily. And as you know, there's always puts and takes around the margins, including the mix of direct and agency, commercial performance, the non-title businesses in the Title segment. And then the -- as I talked about in the beginning, we've had some really strong recruiting this year. I think we're having our best recruiting performance these last 2 quarters as we've ever had. And then a handful of acquisitions, including a couple that we closed in July that will add a little over 200 people to the organization.”

asked by Bose George · answered by Mike Nolan

2 min read 5 chapters

Detailed narrative

Title Segment Outperformance and Strategic Investments

The Title segment delivered strong Q2 FY26 results with adjusted pretax earnings of $448 million, up 33% YoY, and an industry-leading adjusted pretax title margin of 17.8%. This performance was driven by strength across commercial, residential, and agency businesses, supported by disciplined expense management. The company is experiencing its best recruiting performance in recent quarters and has completed several tuck-in acquisitions, adding over 200 people. These strategic investments are expected to front-load expenses, leading to modest margin compression in the second half of the year, but are aimed at long-term business growth.

Commercial Business Strength and Outlook

Commercial direct revenue reached $778 million in the first six months of 2026, a 24% increase over the same period in 2025. Daily commercial orders opened were up 7% YoY in Q2, averaging 919 per day. The company remains bullish on commercial activity, citing a strong pipeline across diverse asset classes like industrial, data centers, multifamily, and energy. Management noted 29 transactions generating over $1 million each in premiums during Q2, reflecting their scale in large transactions. An eventual rebound in the U.S. office real estate market is seen as a potential future tailwind.

Residential Market Dynamics and Technology Integration

U.S. existing home sales remain historically low, but FNF saw increases in daily purchase orders opened, up 3% YoY in Q2 and 4% in July. Refinance orders opened were up 16% YoY in Q2, though they account for only 7% of direct revenue. The inHere digital transaction platform continues to scale, engaging 80% of residential sale transactions in H1 2026, driving efficiency and fraud prevention. A new property monitoring component was launched in 35 states, offered as a complementary post-closing service to enhance customer value and market differentiation.

F&G Segment Growth and Leadership Transition

F&G's gross AUM before reinsurance reached $74.7 billion, up 8% YoY. The segment reported GAAP equity (ex-AOCI) of $6 billion and book value per share (ex-AOCI) of $45.93, up 68% since the 2020 acquisition. Gross sales for Q2 were $2.7 billion, comprising $2 billion in core sales and $700 million in opportunistic sales, with core retail sales of indexed annuities and indexed life at $1.8 billion. Conor Murphy was promoted to CEO and President of F&G, with Mike Bailey joining as CFO, aiming to continue the strategic shift towards a more fee-based, higher-margin, and less capital-intensive model. Chris Blunt will explore strategic alternatives for Peak Altitude, F&G's distribution investment.

Capital Allocation and Financial Position

FNF maintains a strong balance sheet and balanced capital allocation strategy. During Q2, the company returned $195 million to shareholders through $138 million in common dividends and $57 million in share repurchases. For the first six months, total capital returned was $417 million. The holding company ended Q2 with $457 million in cash and short-term liquid investments, down from $659 million at year-end 2025, after funding dividends, interest expense, share repurchases, and increased risk and technology spending.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.