First Horizon (FHN)
NYSE:FHN
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First Horizon
(NYSE:FHN)
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Rating:67Neutral
Price Target:
$24.50
â–²(7.64% Upside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
First Horizon (FHN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.00B
Dividend Yield2.44%
Average Volume (3M)5.76M
Price to Earnings (P/E)11.9
Beta (1Y)1.21
Revenue Growth-4.51%
EPS Growth20.78%
CountryUS
Employees7,200
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.52
Shares Outstanding483,188,660
10 Day Avg. Volume5,523,184
30 Day Avg. Volume5,762,023
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)1.33
Price to Sales (P/S)2.35
P/FCF Ratio12.29
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue3.00
Enterprise Value/Gross Profit4.48
Enterprise Value/Ebitda11.01
Forecast
1Y Price Target
$27.03Price Target Upside18.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)2.13
Revenue Forecast (FY)$3.58B
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 bank...
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 rea...
First Horizon Key Performance Indicators (KPIs)
Any
Revenue By Segment
Shows how different business units contribute to total revenue, highlighting areas of strength and potential growth within the company.
Shows how different business units contribute to total revenue, highlighting areas of strength and potential growth within the company.
Data provided by:
The Fly
The FlyFirst Horizon Earnings Call Summary
Earnings Call Date:Jan 15, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 15, 2026
Earnings Call Sentiment Positive
Overall the call was positive: management reported sustained profitability (15% ROTCE/ROSD), solid sequential loan and deposit growth, meaningful capital returns (nearly $900M repurchased and >$300M dividends in 2025), credit trends that allowed reserve releases, and a constructive 2026 outlook with 3%–7% revenue guidance and mid-single-digit balance sheet growth. Offsetting items include a slight CET1 decline to 10.64% after buybacks, quarter-to-quarter margin sensitivity, a modest rise in criticized/classified loans and net charge-offs, expense upticks tied to incentives and project costs, and concentration in mortgage warehouse exposure. Taken together, highlights materially outweigh the lowlights but several risks (capital management, deposit beta, asset-quality watch items and expense timing) warrant monitoring.Positive Updates
Sustained Profitability and Returns
Adjusted return on tangible common equity / ROSD reached 15% in 2025; management reiterated goal to sustain and exceed that level and highlighted continued PPNR growth opportunities (>$100M incremental opportunity).
Negative Updates
Regulatory Capital Compression This Quarter
CET1 declined to 10.64% at quarter-end (management notes buyback activity and loan growth lowered period-end CET1 and near-term target is 10.75%), creating near-term capital management pressure versus the stated target.
Read all updates
Q4-2025 Updates
Positive
Negative
Sustained Profitability and Returns
Adjusted return on tangible common equity / ROSD reached 15% in 2025; management reiterated goal to sustain and exceed that level and highlighted continued PPNR growth opportunities (>$100M incremental opportunity).
Read all positive updates
Company Guidance
For 2026 management guided to year‑over‑year PPNR growth with mid‑single‑digit balance‑sheet growth, positive operating leverage and total revenue growth of 3%–7% (roughly ~$135M), while keeping adjusted expenses essentially flattish (with incremental incentive expense if countercyclical revenue rises); they expect net charge‑offs of 15–25 bps, an effective tax rate of 21–23%, and NIM broadly in the mid‑340s (with quarter‑to‑quarter variation). Near‑term CET1 is targeted at 10.75% (fluctuating ~10.5%–10.75% with loan growth) with intermediate‑term goals of 10.0%–10.5%; management reiterated a $100M+ incremental PPNR opportunity, a 15%+ adjusted ROSD target, and continued capital returns (2025 buybacks ~$894M, dividends ~$300M; ~$1B buyback authorization remaining).First Horizon Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
73
Positive
Cash Flow
62
Positive
| 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
Positive
22.76
Price Trends
23.67
Negative
23.26
Negative
22.35
Positive
Market Momentum
-0.36
Negative
49.68
Neutral
59.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Positive. The current price of 22.76 is above the 20-day moving average (MA) of 22.36, below the 50-day MA of 23.67, and above the 200-day MA of 22.35, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 59.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FHN.
First Horizon Risk Analysis
First Horizon disclosed 111 risk factors in its most recent earnings report. First Horizon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Horizon Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $9.07B | 9.50 | 9.00% | 2.38% | 33.87% | 12.26% | |
74 Outperform | $11.19B | 9.86 | 10.70% | 2.49% | 4.78% | 21.68% | |
74 Outperform | $9.35B | 11.37 | 11.71% | 1.40% | 3.58% | 13.93% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $11.00B | 11.94 | 11.06% | 2.44% | -4.51% | 20.78% | |
65 Neutral | $8.59B | 10.14 | 9.63% | 1.37% | 38.81% | 10.38% | |
62 Neutral | $7.78B | 7.96 | 13.33% | 1.80% | 6.30% | 25.28% |
* Financial Sector Average
FHN
First Horizon
22.76
3.66
19.14%
UMBF
UMB Financial
112.79
12.29
12.23%
WBS
Webster Financial
69.42
19.34
38.61%
WTFC
Wintrust Financial
138.94
26.16
23.20%
WAL
Western Alliance
70.85
-5.32
-6.98%
SSB
SouthState Corporation
92.52
0.20
0.22%
First Horizon Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
First Horizon Issues Series H Preferred Depositary Shares
Positive
Mar 12, 2026
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 Perpetu...
Business Operations and StrategyFinancial Disclosures
First Horizon posts strong 2025 earnings and loan growth
Positive
Jan 15, 2026
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 i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.