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First Horizon
(NYSE:FHN)
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Rating:71Outperform
Price Target:
$28.00
â–²(9.67% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily driven by solid financial performance with improving profitability and a strong TTM step-up in cash generation, supported by reasonable leverage and steady ROE. Valuation is also constructive (P/E ~12 and ~2.5% yield). Offsetting factors are mixed technicals (neutral momentum with slight near-term softness) and earnings-call risks centered on funding costs (deposit competition/brokered mix) and modest NIM pressure despite generally positive execution and reiterated guidance.
Positive Factors
Improving profitability and margins
Sustainably higher net and EBIT margins through the TTM indicate stronger earnings power and operating leverage. Durable margin expansion provides buffers against interest rate or revenue swings, supports reinvestment and capital returns, and underpins multi-quarter profitability resilience.
Negative Factors
Reliance on brokered deposits
Higher reliance on brokered deposits increases funding fragility and cost sensitivity versus core retail deposits. Over a multi-month horizon, this funding mix can raise deposit beta, elevate funding costs in competitive markets, and constrain margin stability and loan growth flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
Sustainably higher net and EBIT margins through the TTM indicate stronger earnings power and operating leverage. Durable margin expansion provides buffers against interest rate or revenue swings, supports reinvestment and capital returns, and underpins multi-quarter profitability resilience.
Read all positive factors
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 (FHN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.17B
Dividend Yield2.5%
Average Volume (3M)5.39M
Price to Earnings (P/E)12.2
Beta (1Y)1.21
Revenue Growth2.15%
EPS Growth34.54%
CountryUS
Employees7,404
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.11
Shares Outstanding474,617,800
10 Day Avg. Volume7,581,178
30 Day Avg. Volume5,390,755
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.33
Price to Sales (P/S)2.35
P/FCF Ratio12.29
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.25Price Target Upside10.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.14
Revenue Forecast (FY)$3.55B
First Horizon Business Overview & Revenue Model
Company Description
First Horizon Corporation functions as the parent company of First Horizon Bank, offering a diverse range of financial services. Its operations are segmented into three core divisions: Regional Banking, Specialty Banking, and Corporate. The compan...
How the Company Makes Money
First Horizon primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest received on earning assets (such as commercial loans, consumer loans, real estate loans,...
First Horizon Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call emphasized multiple positive operating and financial developments—double‑digit adjusted EPS improvement year over year, solid loan growth, stronger PPNR, improving ROTCE, disciplined capital management with meaningful buybacks, and favorable credit trends (lower NPLs). Offsetting items include modest NIM compression, a rise in deposit costs and seasonal reliance on brokered funding, ADR volatility impacting fixed income revenue, and higher marketing/outside services this quarter. Management reiterated guidance, expressed confidence in executing a $100M+ PPNR opportunity, and highlighted expense discipline and targeted investments. On balance, the positives (robust earnings momentum, loan and fee growth, capital deployment and improving credit) outweigh the manageable headwinds related to funding competition and macro volatility.Positive Updates
Strong Adjusted EPS and PPNR Growth
Adjusted EPS rose $0.09 year over year (≈20%); company reported adjusted EPS of $0.54 for the quarter. Adjusted PPNR increased 1% sequentially to $364 million and was up 8% versus the first half of 2025.
Negative Updates
Margin Compression and Competitive Funding Costs
Net interest margin compressed by ~3 basis points to the high 3.40s; average rate paid on interest-bearing deposits increased to 2.33% (up 5 bps QoQ). Management expects continued deposit competition and potential upward pressure on deposit costs in H2, with deposit beta trending.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted EPS and PPNR Growth
Adjusted EPS rose $0.09 year over year (≈20%); company reported adjusted EPS of $0.54 for the quarter. Adjusted PPNR increased 1% sequentially to $364 million and was up 8% versus the first half of 2025.
Read all positive updates
Company Guidance
Management reiterated full‑year guidance while highlighting tangible quarterly progress: adjusted EPS of $0.54 and adjusted PPNR of $364M (NII up $9M), adjusted ROTCE +180 bps year‑over‑year, period‑end loans up ~$2.0B YoY and +$953M QoQ (C&I +$710M, CRE +$175M, mortgage company loans +$118M), average loan balances +$1.5B, NIM settled in the high‑3.40% range (‑3 bps q/q), average rate on interest‑bearing deposits 2.33% (+5 bps q/q) with a cumulative deposit beta of 66% since Sep‑2024, net charge‑offs $33M (20 bps) with provision $15M, ACL/loans 1.24% and NPLs 0.81% (‑13 bps), CET1 ~10.5% target, tangible book $14.53 (+7% YoY) after $100M of buybacks this quarter (4M shares) and $807M YTD, securities ~11% of assets with $1.2B rolling off at ~2.8% being reinvested at 4%+, expense plan essentially flat over the near term, and management reiterated a $100M+ PPNR opportunity and confidence in mid‑ to potentially high‑single‑digit loan growth scenarios.First Horizon Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63B | 4.99B | 4.94B | 4.71B | 3.41B | 3.15B |
| Gross Profit | 3.49B | 3.36B | 2.95B | 2.90B | 3.02B | 3.30B |
| EBITDA | 1.41B | 1.34B | 1.11B | 1.23B | 1.24B | 1.33B |
| Net Income | 1.06B | 983.00M | 775.00M | 897.00M | 900.00M | 999.00M |
Balance Sheet | ||||||
| Total Assets | 84.44B | 83.88B | 82.15B | 81.66B | 78.95B | 89.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.03B | 4.62B | 8.94B | 10.73B | 11.28B | 24.76B |
| Total Debt | 4.32B | 4.57B | 4.59B | 3.70B | 4.10B | 3.71B |
| Total Liabilities | 74.97B | 74.73B | 73.04B | 72.37B | 70.41B | 80.60B |
| Stockholders Equity | 9.17B | 8.85B | 8.82B | 9.00B | 8.25B | 8.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.66B | 955.00M | 1.22B | 1.26B | 2.26B | 672.00M |
| Operating Cash Flow | 1.68B | 988.00M | 1.27B | 1.30B | 2.29B | 725.00M |
| Investing Cash Flow | -2.55B | -1.45B | -1.06B | -2.60B | 8.33B | -4.60B |
| Financing Cash Flow | 1.04B | 524.00M | -404.00M | 1.49B | -10.87B | 4.02B |
First Horizon Technical Analysis
Neutral
25.53
Price Trends
25.19
Positive
24.39
Positive
23.66
Positive
Market Momentum
0.13
Positive
48.60
Neutral
36.16
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 25.53 is below the 20-day moving average (MA) of 25.64, above the 50-day MA of 25.19, and above the 200-day MA of 23.66, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 36.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.76B | 12.63 | 12.33% | 1.32% | 5.67% | 17.55% | |
77 Outperform | $11.07B | 12.06 | 12.17% | 1.20% | 28.55% | 37.78% | |
76 Outperform | $10.19B | 10.97 | 10.49% | 2.26% | 33.25% | 41.46% | |
74 Outperform | $12.51B | 12.54 | 10.66% | 2.10% | 4.34% | 24.81% | |
71 Outperform | $12.17B | 12.15 | 11.70% | 2.51% | 2.15% | 34.54% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $8.79B | 8.94 | 12.99% | 1.97% | 12.24% | 16.53% |
* Financial Sector Average
FHN
First Horizon
25.46
4.70
22.63%
UMBF
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145.60
37.34
34.49%
WBS
Webster Financial
79.03
24.82
45.79%
WTFC
Wintrust Financial
158.75
37.97
31.43%
WAL
Western Alliance
81.33
5.41
7.13%
SSB
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108.12
18.34
20.42%
First Horizon Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
First Horizon Updates Board Bylaws and Governance Documentation
Neutral
Jul 28, 2026
On July 27, 2026, First Horizon Corporation’s board unanimously approved immediate amendments to Article Seven of its bylaws, removing Section 7.1 and renumbering the remaining provisions. The deleted section, which had outlined conditions f...
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.