How Strong Q3 Earnings Growth at Stewart Information Services (STC) Has Changed Its Investment Story

• Stewart Information Services reported third quarter 2025 results, posting revenue of US$796.92 million and net income of US$44.26 million, both higher than the same period last year.
• Revenue and diluted earnings per share saw sizable gains year-over-year, reflecting improved operational performance and growth momentum across the business.
• We'll explore how these robust quarterly earnings may shape Stewart Information Services' investment narrative going forward.

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Stewart Information Services Investment Narrative Recap

To invest in Stewart Information Services, shareholders need confidence in the company’s ability to capitalize on an improving housing market and continued operational execution. The latest quarterly results show a strong rebound in revenue and earnings, which supports near-term optimism around the housing market recovery, though ongoing margin pressures from higher operating expenses remain an important watchpoint that was not materially impacted by this news.

Alongside positive earnings, Stewart’s recent increase in its annual dividend from US$2.00 to US$2.10 per share is a key development, signaling a commitment to shareholder returns and an underlying confidence in future cash flows. This can add support to the investment case when revenue momentum persists, but margin management will need to remain in focus as one of the main risks.

But even as fundamentals show strength, investors should be aware of the risk from persistent cost increases in the Real Estate Solutions segment, especially if...

Read the full narrative on Stewart Information Services (it's free!)

Stewart Information Services is projected to reach $3.4 billion in revenue and $214.5 million in earnings by 2028. This outlook assumes an annual revenue growth rate of 10.3% and an increase in earnings of approximately $141 million from the current $73.3 million level.

Uncover how Stewart Information Services' forecasts yield a $78.00 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members range from US$44.61 to US$78. The recent strong revenue growth may offer optimism, but higher operating costs remain a central risk with broader implications for profitability and valuation.

Explore 3 other fair value estimates on Stewart Information Services - why the stock might be worth as much as 13% more than the current price!

Build Your Own Stewart Information Services Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Stewart Information Services research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Stewart Information Services research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Stewart Information Services' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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