First Horizon (FHN) AI Stock Analysis

• Market Cap: $10.52B
• Dividend Yield: 2.44%
• Average Volume (3M): 6.29M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.24
• Revenue Growth: -4.51%
• EPS Growth: 20.78%
• Country: US
• Employees: 7,200
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.52
• Shares Outstanding: 483,188,660
• 10 Day Avg. Volume: 5,920,641
• 30 Day Avg. Volume: 6,292,976
• PEG Ratio: 0.31
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 12.29
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 10.71
• 1Y Price Target: $27.35
• Price Target Upside: 25.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.13
• Revenue Forecast (FY): $3.58B

• Rating: 67 Neutral
• Price Target: $24.50 ▲(12.54% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is driven primarily by solid financial performance and a positive 2026 outlook (growth and operating leverage guidance, ongoing capital returns). These positives are partially offset by weak technical momentum and bank-specific risks highlighted on the call (CET1 pressure, NIM/deposit-beta sensitivity, and emerging asset-quality watch items).

Positive Factors

Sustained revenue growth

A steady rise in top line from $2.8B to $5.0B over 2020–2025 indicates durable client adoption and scaled lending/fee businesses. Persistent revenue growth supports reinvestment, underwriting capacity and resilience to cyclical headwinds across the next several quarters.

Strong returns on capital

A 15% adjusted ROTCE/ROSD in 2025 signals high earnings efficiency relative to equity, enabling internal capital generation for dividends, buybacks and organic growth. Sustained returns bolster the franchise’s ability to compete for talent and finance strategic initiatives over 2–6 months.

Improved capital access via Series H

Issuing Series H preferred depositary shares broadens permanent-style capital and enhances regulatory capital flexibility. Structural strengthening of the capital base supports lending capacity and strategic optionality while providing a non-dilutive buffer for common equity.

Negative Factors

Near-term CET1 pressure

A CET1 decline to 10.64% after buybacks tightens the margin for regulatory capital and constrains simultaneous loan growth and shareholder returns. Management’s near‑term 10.75% target implies limited capital slack and potential trade-offs between growth, buybacks and capital buffers.

Margin sensitivity to deposit beta

Quarterly NIM compression and explicit deposit‑beta risk mean net interest income can swing with competitor pricing and liquidity shifts. Persistent margin sensitivity reduces predictability of earnings and heightens exposure to macro and funding dynamics over the medium term.

Concentration in mortgage‑warehouse exposure

Heavy concentration in mortgage‑warehouse lending concentrates credit and funding risk in one corridor; a weakening mortgage warehouse market or stress among warehouse borrowers could produce correlated losses or funding strains, elevating asset‑quality volatility for several quarters.

First Horizon Business Overview & Revenue Model

Company Description

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through three segments: Regional Banking, Specialty Banking, and Corporate. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also underwrites bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; sells loans and derivatives; and offers advisory services. In addition, it offers various services, such as mortgage banking; title insurance and loan-closing; brokerage; correspondent banking; nationwide check clearing and remittance processing; trust, fiduciary, and agency; equipment finance; and investment and financial advisory services. Further, the company sells mutual fund and retail insurance products; and credit cards. It operates approximately 500 banking offices in 22 states under the First Horizon Bank brand; and 400 banking centers in 12 states under the FHN Financial brand in the United States. The company was formerly known as First Horizon National Corporation and changed its name to First Horizon Corporation in November 2020. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.

How the Company Makes Money

First Horizon primarily makes money through banking spread income and fee-based financial services. A major revenue stream is net interest income: the company collects interest and fees on loans (such as commercial loans, consumer lending, and real estate-related lending) and on its investment/securities portfolio, and pays interest to depositors and other funding sources; the difference between what it earns on interest-earning assets and what it pays on interest-bearing liabilities (after considering funding mix and pricing) drives this spread income. In addition, it earns noninterest income from fees tied to banking services, such as service charges and account-related fees, treasury management and payment services for business clients, and other transaction/processing fees associated with providing banking and cash-management solutions. Like other banks, profitability is also influenced by credit performance (provision for credit losses and net charge-offs), balance-sheet growth, deposit mix and cost of funds, interest-rate conditions, and operating efficiency. Specific significant partnerships or unique earnings arrangements are null.

First Horizon Financial Statement Overview

Summary

Fundamentals are solid: steady revenue growth through 2025 and healthy profitability, supported by manageable leverage and improved ROE versus 2024. The main drag is cash-flow volatility and a step-down in margins from peak years, which reduces confidence in earnings durability.

Income Statement

Revenue has grown steadily from $2.8B (2020) to $5.0B (2025), indicating a solid top-line trajectory. Profitability remains healthy with a 2025 net margin near 20% and strong operating profitability, while 2025 earnings improved versus 2024. However, margins have generally trended down from the unusually strong 2021–2022 levels, suggesting profitability is less resilient than earlier in the cycle.

Balance Sheet

Leverage appears reasonable and fairly stable, with debt-to-equity around ~0.41–0.52 across the period and 2025 at ~0.52. Equity has been stable to modestly higher over time, supporting balance sheet durability. Return on equity is solid (about 11% in 2025, up from 2024), though not consistently rising year-to-year and leverage has ticked higher versus 2023, which slightly increases risk.

Cash Flow

Free cash flow conversion to net income is consistently strong (roughly in line with net income in most years), and 2025 shows a sharp increase in free cash flow versus 2024. That said, operating cash flow is volatile (notably weaker in 2020, 2021, and 2025 compared with 2022–2024), and the operating cash flow relative to the company’s asset base is low, which reduces confidence in cash flow consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.99B	4.94B	4.71B	3.41B	3.15B
Gross Profit	3.36B	2.95B	2.90B	3.02B	3.30B
EBITDA	1.34B	1.11B	1.23B	1.24B	1.33B
Net Income	983.00M	775.00M	897.00M	900.00M	999.00M
Balance Sheet
Total Assets	83.88B	82.15B	81.66B	78.95B	89.09B
Cash, Cash Equivalents and Short-Term Investments	4.62B	8.94B	10.73B	11.28B	24.76B
Total Debt	4.57B	4.59B	3.70B	4.10B	3.71B
Total Liabilities	74.73B	73.04B	72.37B	70.41B	80.60B
Stockholders Equity	8.85B	8.82B	9.00B	8.25B	8.20B
Cash Flow
Free Cash Flow	955.00M	1.22B	1.26B	2.26B	672.00M
Operating Cash Flow	988.00M	1.27B	1.30B	2.29B	725.00M
Investing Cash Flow	-1.45B	-1.06B	-2.60B	8.33B	-4.60B
Financing Cash Flow	524.00M	-404.00M	1.49B	-10.87B	4.02B

First Horizon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Negative. The current price of 21.77 is below the 20-day moving average (MA) of 23.19, below the 50-day MA of 24.01, and below the 200-day MA of 22.22, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 30.98 is Neutral, neither overbought nor oversold. The STOCH value of 8.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHN.

First Horizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSB	75 Outperform	$8.69B	9.50	9.00%	2.38%	33.87%	12.26%
WBS	74 Outperform	$11.08B	9.86	10.70%	2.49%	4.78%	21.68%
WTFC	74 Outperform	$8.79B	11.37	11.71%	1.40%	3.58%	13.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FHN	67 Neutral	$10.52B	11.94	11.06%	2.44%	-4.51%	20.78%
UMBF	65 Neutral	$8.30B	10.14	9.63%	1.37%	38.81%	10.38%
WAL	62 Neutral	$7.33B	7.96	13.33%	1.80%	6.30%	25.28%

First Horizon Corporate Events

First Horizon Issues Series H Preferred Depositary Shares

On March 6, 2026, First Horizon Corporation filed Articles of Amendment to its Amended and Restated Charter with the Tennessee Secretary of State, formally establishing the preferences, limitations and relative rights of its Non-Cumulative Perpetual Preferred Stock, Series H, with a $100,000 per share liquidation preference. These terms include restrictions on the company’s ability to declare or pay dividends on, or repurchase, its common stock if dividends on the Series H preferred are not declared and paid or set aside, underscoring the priority of this capital instrument in the firm’s distribution hierarchy.

On March 12, 2026, First Horizon completed the sale of 16,000,000 depositary shares, each representing a 1/4,000th interest in a share of its Series H Preferred Stock, under an underwriting agreement led by a syndicate of major investment banks. By issuing these exchange-listed-style depositary shares under an effective shelf registration, the bank broadened investor access to its preferred equity, reinforcing its regulatory capital base and potentially enhancing financial flexibility for future strategic and lending activities.

The most recent analyst rating on (FHN) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on First Horizon stock, see the FHN Stock Forecast page.

First Horizon posts strong 2025 earnings and loan growth

On January 15, 2026, First Horizon Corporation reported that full-year 2025 net income available to common shareholders rose 29% to $956 million, with earnings per share climbing 38% to $1.87 versus 2024, driven by revenue strength, improved net interest margin, and solid credit performance, while adjusted net income reached $968 million or $1.89 per share. Fourth-quarter 2025 NIAC increased 1% year-on-year to $257 million, or $0.52 per share, supported by higher net interest income, stable deposits, and loan growth—particularly in loans to mortgage companies and other commercial lending—offset by higher operating expenses linked to talent additions and expanded occupancy and services, underscoring management’s strategy to deepen client relationships and position the bank for sustainable growth in 2026.

The most recent analyst rating on (FHN) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on First Horizon stock, see the FHN Stock Forecast page.