First Horizon (FHN) AI Stock Analysis

• Market Cap: $11.50B
• Dividend Yield: 2.44%
• Average Volume (3M): 6.26M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.21
• 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: 5,206,791
• 30 Day Avg. Volume: 6,256,221
• 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: 1.33
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 11.46
• 1Y Price Target: $27.37
• Price Target Upside: 15.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 2.13
• Revenue Forecast (FY): $3.58B

• Rating: 70 Outperform
• Price Target: $27.00 ▲(13.49% Upside)
• Action: Upgraded Date: 02/27/26
• Date: Action: Upgraded 02/27/26

The score is driven primarily by solid financial performance (steady revenue growth, healthy profitability, and manageable leverage) and a supportive valuation (P/E 12.9 with a 2.45% yield). Offsetting these are mixed technical signals indicating cooled momentum and earnings-call risk items—especially CET1 pressure from buybacks, margin sensitivity, and early asset-quality/concentration watch points.

Positive Factors

Sustained revenue growth

A multi-year revenue increase to $5.0B demonstrates durable top-line expansion across lending, wealth and fee channels. This broad-based growth supports recurring earnings, underwriting scale and reinvestment capacity, underpinning mid-term earnings resilience and strategic optionality.

Strong profitability and return targets

A 15% ROTCE/ROSD and management targets to sustain/exceed it indicate operational efficiency and disciplined capital allocation. Combined with a stated >$100M PPNR opportunity and ongoing capital returns, this underpins durable shareholder return potential and operational focus.

Manageable leverage and cash generation

Moderate debt-to-equity and strong free-cash-flow conversion provide financial flexibility to support buybacks, dividends and lending growth. These balance-sheet characteristics reduce refinancing risk and enhance capacity to absorb shocks while funding strategic initiatives over the medium term.

Negative Factors

Near-term CET1 capital pressure

Capital erosion from sizable buybacks has pushed CET1 below near-term targets, constraining buffer for regulatory and stress scenarios. Sustained buybacks or faster loan growth could force slower capital returns or higher capital retention, limiting strategic flexibility over coming quarters.

Rising criticized/classified loans and lower reserves

An uptick in criticized/classified loans alongside a lower allowance ratio and no Q4 provision reduces coverage for future losses. If credit stress intensifies, this combination could pressure earnings, force provisions and consume capital, making credit risk a persistent watch item.

Concentration in mortgage-warehouse exposure

High concentration in mortgage-warehouse lending creates portfolio correlation to the mortgage funding cycle. Even with controls, a downturn or funding squeeze in that niche could amplify losses or liquidity needs, elevating structural credit and funding risk vs. more diversified peers.

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 generates revenue through several key streams, primarily from net interest income and non-interest income. Net interest income is derived from the difference between interest earned on loans and interest paid on deposits, which constitutes a significant portion of the company's earnings. Additionally, First Horizon earns non-interest income through fees from various services, including wealth management, investment services, and mortgage origination. The company also benefits from strategic partnerships and collaborations that enhance its service offerings and market reach. Factors contributing to its earnings include interest rate changes, loan growth, and overall economic conditions in its operating regions.

First Horizon Financial Statement Overview

Summary

Solid fundamentals driven by steady revenue growth ($2.8B in 2020 to $5.0B in 2025) and healthy profitability (about 20% net margin in 2025) with improving earnings vs. 2024. Balance sheet leverage is moderate and manageable (debt-to-equity ~0.52 in 2025) with solid ROE (~11%), but cash-flow consistency is a key offset due to volatile operating cash flow despite strong free-cash-flow conversion.

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	-1.09B	-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: Neutral
• Last Price: 23.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Neutral. The current price of 23.79 is below the 20-day moving average (MA) of 25.01, below the 50-day MA of 24.58, and above the 200-day MA of 22.20, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 43.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$9.68B	12.54	10.68%	2.38%	33.87%	12.26%
WBS	74 Outperform	$11.63B	12.22	10.65%	2.49%	4.78%	21.68%
WTFC	74 Outperform	$9.69B	12.63	12.11%	1.40%	3.58%	13.93%
FHN	70 Outperform	$11.50B	12.72	11.13%	2.44%	-4.51%	20.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UMBF	65 Neutral	$8.82B	12.47	12.59%	1.37%	38.81%	10.38%
WAL	65 Neutral	$8.83B	9.20	13.50%	1.80%	6.30%	25.28%

First Horizon Corporate Events

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.