Title insurance provider Stewart Information Services (NYSE: STC) missed Wall Street’s revenue expectations in Q3 2026, but sales rose 13% year on year to $900.7 million. Its non-GAAP profit of $1.33 per share was 11.9% below analysts’ consensus estimates.

Is now the time to buy Stewart Information Services? Find out by accessing our full research report, it’s free.

"This quarter, we faced increased industry headwinds that we anticipate will continue into next year," commented Fred Eppinger, chief executive officer. "We remain focused on growing market share across our businesses while maintaining disciplined operational execution in this challenging market environment."

Company overview

Founded in 1893 during America's westward expansion when property records were often disputed, Stewart Information Services (NYSE: STC) provides title insurance and real estate services, helping homebuyers, sellers, and lenders verify property ownership and protect against title defects.

Revenue growth

Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Regrettably, Stewart Information Services’s revenue grew at a sluggish 1.9% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a tough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Stewart Information Services’s annualized revenue growth of 18.4% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Stewart Information Services’s revenue grew by 13% year on year to $900.7 million but fell short of Wall Street’s estimates.

Net premiums earned made up 84.1% of the company’s total revenue during the last five years, meaning Stewart Information Services barely relies on non-insurance activities to drive its overall growth.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

Book value per share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float — premiums collected but not yet paid out — is invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)

BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Stewart Information Services’s BVPS grew at a sluggish 4.1% annual clip over the last five years. The last two years show a similar trajectory as BVPS grew by 3.9% annually from $50.77 to $54.82 per share.

Key takeaways from Stewart Information Services’s Q3 results

We struggled to find many positives in these results. Its EPS missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $52.42 immediately after reporting.

Stewart Information Services underperformed this quarter, but does that create an opportunity to invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).