First Advantage (NYSE:FA) Updates FY 2026 Earnings Guidance

First Advantage (NYSE:FA) updated its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.23-1.290 for the period, compared to the consensus EPS estimate of 1.210. The company issued revenue guidance of $1.7 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on FA shares. JPMorgan Chase & Co. upped their price objective on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Barclays lifted their target price on First Advantage from $20.00 to $30.00 and gave the company an “overweight” rating in a research note on Friday. Needham & Company LLC upgraded shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price for the company in a report on Thursday. Royal Bank Of Canada increased their price target on shares of First Advantage from $21.00 to $24.00 and gave the company a “sector perform” rating in a research report on Friday. Finally, Stifel Nicolaus set a $18.00 price target on shares of First Advantage in a report on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.67.

First Advantage Stock Down 0.5%

Shares of First Advantage stock traded down $0.11 during trading on Friday, reaching $24.01. The company’s stock had a trading volume of 2,577,762 shares, compared to its average volume of 1,406,264. First Advantage has a 1-year low of $8.82 and a 1-year high of $25.15. The company has a 50-day simple moving average of $18.86 and a two-hundred day simple moving average of $14.69. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. The company has a market cap of $4.12 billion, a price-to-earnings ratio of 800.33 and a beta of 1.16.

First Advantage (NYSE:FA) last announced its earnings results on Thursday, August 6th. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.06. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same quarter last year, the company posted $0.27 EPS. The firm’s quarterly revenue was up 14.9% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. As a group, equities analysts forecast that First Advantage will post 0.74 earnings per share for the current year.

Insider Activity

In other news, Director James Lindsey Clark sold 4,921 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $15.69, for a total transaction of $77,210.49. Following the transaction, the director owned 56,844 shares in the company, valued at $891,882.36. This represents a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is currently owned by company insiders.

Trending Headlines about First Advantage

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q2 earnings and revenue beat estimates: First Advantage reported adjusted diluted EPS of $0.35, above the $0.29 consensus and up from $0.27 a year earlier. Revenue rose 14.9% year over year to $448.8 million, while adjusted net income increased 30.8% to $61.4 million. First Advantage Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Full-year outlook was raised: Management now expects 2026 revenue of $1.67 billion to $1.71 billion, adjusted EBITDA of $472 million to $486 million, and adjusted EPS of $1.23 to $1.29. The EPS outlook is above the roughly $1.21 analyst consensus, signaling confidence in continued operating momentum. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Capital returns and deleveraging support the shares: First Advantage repurchased $18.7 million of stock and made a further $45 million voluntary debt prepayment, following a $25 million payment in May. These actions can improve balance-sheet flexibility and enhance per-share value. First Advantage Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst sentiment improved: Needham upgraded First Advantage from “Hold” to “Buy” and set a $28 price target, implying additional upside from the referenced market price.
• Neutral Sentiment: Valuation and margins remain considerations: The stock is trading near its 52-week high, and its reported P/E ratio is elevated. Adjusted EBITDA margin declined modestly year over year to 28.6%, which could limit upside if growth or profitability slows.

Institutional Investors Weigh In On First Advantage

Several institutional investors and hedge funds have recently made changes to their positions in FA. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in First Advantage by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company’s stock valued at $501,000 after purchasing an additional 1,471 shares in the last quarter. Swiss National Bank boosted its stake in First Advantage by 1.6% during the 3rd quarter. Swiss National Bank now owns 151,544 shares of the company’s stock worth $2,332,000 after purchasing an additional 2,400 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of First Advantage by 5.9% during the second quarter. The Manufacturers Life Insurance Company now owns 44,279 shares of the company’s stock worth $735,000 after buying an additional 2,463 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of First Advantage by 26.4% during the fourth quarter. AQR Capital Management LLC now owns 13,751 shares of the company’s stock worth $200,000 after buying an additional 2,875 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its position in shares of First Advantage by 105.7% in the second quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock valued at $119,000 after buying an additional 3,682 shares during the last quarter. 94.91% of the stock is currently owned by institutional investors and hedge funds.

About First Advantage

First Advantage is a global provider of background screening, identity verification and workforce risk management solutions. The company delivers a comprehensive suite of services that help employers verify candidate credentials, manage regulatory compliance and mitigate risk throughout the employee lifecycle. Its platform is built to integrate with leading human capital management and applicant tracking systems, enabling a seamless and scalable experience for organizations of all sizes.

The company’s core offerings include pre-employment and continuous background screening, digital identity verification, drug and health testing, and ongoing employee monitoring.