Title insurance provider Stewart Information Services (NYSE: STC) announced better-than-expected revenue in Q2 CY2026, with sales up 24.5% year on year to $899.2 million. Its non-GAAP profit of $1.39 per share was 14.7% below analysts’ consensus estimates.
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Stewart Information Services (STC) Q2 CY2026 Highlights:
- Revenue: $899.2 million vs analyst estimates of $846.7 million (24.5% year-on-year growth, 6.2% beat)
- Pre-tax Profit: $55.1 million (6.1% margin)
- Adjusted EPS: $1.39 vs analyst expectations of $1.63 (14.7% miss)
- Book Value per Share: $54.63 (6.2% year-on-year growth)
- Market Capitalization: $2.13 billion
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
Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services are the third. Regrettably, Stewart Information Services’s revenue grew at a sluggish 2.9% compounded annual growth rate over the last five years. This was below our standards and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Stewart Information Services’s annualized revenue growth of 18.2% 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 reported robust year-on-year revenue growth of 24.5%, and its $899.2 million of revenue topped Wall Street estimates by 6.2%.
Net premiums earned made up 85.2% 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.
Net premiums earned command greater market attention due to their reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.
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Book Value Per Share (BVPS)
Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less 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 because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
Stewart Information Services’s BVPS grew at a tepid 5.3% annual clip over the last five years. The last two years show a similar trajectory as BVPS grew by 5.1% annually from $49.44 to $54.63 per share.
Key Takeaways from Stewart Information Services’s Q2 Results
We were impressed by how significantly Stewart Information Services blew past analysts’ revenue expectations this quarter. On the other hand, its EPS missed. Overall, this quarter could have been better. The stock traded down 2.4% to $68.00 immediately following the results.
Stewart Information Services didn’t show its best hand this quarter, but does that create an opportunity to buy the stock right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
