First Horizon (FHN) AI Stock Analysis

• Market Cap: $11.78B
• Dividend Yield: 2.44%
• Average Volume (3M): 5.53M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.16
• 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: 485,000,000
• 10 Day Avg. Volume: 7,063,281
• 30 Day Avg. Volume: 5,534,780
• PEG Ratio: -1.06
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 8.89
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 12.88
• 1Y Price Target: $27.27
• Price Target Upside: 12.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 2.09
• Revenue Forecast (FY): $3.57B

• Rating: 68 Neutral
• Price Target: $26.00 ▲(7.44% Upside)

The score reflects solid profitability and balance-sheet stability, supported by constructive 2026 guidance and capital returns. It is tempered by declining revenue growth and cash-flow softness, while technical indicators are neutral and valuation is reasonable with a moderate P/E and ~2.5% dividend yield.

Positive Factors

Sustained high returns

A sustained ~15% ROTCE/ROSD indicates the franchise consistently converts core earnings into strong shareholder returns. That level of profitability supports ongoing reinvestment, buybacks and dividends, and provides a durable buffer to absorb cyclical credit or margin pressure.

Moderate leverage and solid ROE

A debt-to-equity ratio near 0.63 with ~10% ROE signals a conservative capital structure for a regional bank. Moderate leverage and a healthy equity base support lending flexibility, capital returns, and resilience through economic cycles, underpinning stable long-term operations.

Meaningful capital returns

Large, executed buybacks and a sizable remaining authorization reflect strong cash generation and management discipline to return excess capital. Repeatable buybacks and dividends, funded by earnings, are a durable shareholder-friendly policy when balanced against capital targets.

Negative Factors

Declining revenue and softer cash flow

Material revenue contraction and a sharp fall in free cash flow growth weaken the franchise’s organic funding capacity. Over several quarters this can constrain reinvestment, elevate reliance on capital markets for buybacks or growth, and reduce margin for error during stress.

Near-term CET1 pressure

Capital erosion to 10.64% after buybacks and loan growth leaves limited cushion versus the 10.75% near-term target. Persistent pressure could force higher capital retention, slow share repurchases, or constrain loan growth, directly affecting strategic flexibility over months.

Concentration in mortgage warehouse exposure

Heavy concentration in mortgage warehouse lending creates idiosyncratic risk if that market weakens. Even with controls, concentrated exposure can amplify losses or tighten lending, increasing reserve needs and potentially slowing commercial lending growth across the portfolio.

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

Mixed fundamentals: strong profitability and efficiency (gross margin 70.56%, net margin 20.08%, healthy EBIT/EBITDA margins) and a stable balance sheet with moderate leverage (debt-to-equity 0.63, ROE 9.99%). Offsetting this are declining revenue growth (-8.41% TTM) and weaker cash-flow trends (free cash flow growth -58.19% and low operating cash flow to net income conversion).

Income Statement

First Horizon's income statement reveals a mixed performance. The TTM (Trailing-Twelve-Months) shows a decline in revenue growth rate by 8.41%, indicating potential challenges in revenue generation. However, the company maintains a strong gross profit margin of 70.56% and a net profit margin of 20.08%, showcasing efficient cost management and profitability. The EBIT and EBITDA margins are also healthy at 26.02% and 27.63% respectively, reflecting solid operational efficiency.

Balance Sheet

The balance sheet of First Horizon demonstrates a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. The return on equity (ROE) stands at 9.99%, suggesting effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the company's equity base appears robust relative to its assets, contributing to financial stability.

Cash Flow

Cash flow analysis shows some concerns, with a significant decline in free cash flow growth by 58.19% in the TTM. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio remains strong at 95.95%, suggesting that the company is still generating substantial free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.79B	4.94B	4.71B	3.41B	3.15B	2.80B
Gross Profit	3.09B	2.95B	2.90B	3.02B	3.30B	2.06B
EBITDA	1.21B	1.11B	1.23B	1.24B	1.33B	995.00M
Net Income	887.00M	775.00M	897.00M	900.00M	999.00M	845.00M
Balance Sheet
Total Assets	83.19B	82.15B	81.66B	78.95B	89.09B	84.21B
Cash, Cash Equivalents and Short-Term Investments	10.24B	8.94B	10.73B	11.28B	24.76B	17.60B
Total Debt	5.60B	4.59B	3.70B	4.10B	3.71B	3.87B
Total Liabilities	73.95B	73.04B	72.37B	70.41B	80.60B	75.90B
Stockholders Equity	8.95B	8.82B	9.00B	8.25B	8.20B	8.01B
Cash Flow
Free Cash Flow	406.00M	1.22B	1.26B	2.26B	672.00M	114.00M
Operating Cash Flow	423.00M	1.27B	1.30B	2.29B	725.00M	172.00M
Investing Cash Flow	-355.00M	-1.06B	-2.60B	8.33B	-4.60B	-4.97B
Financing Cash Flow	-418.00M	-404.00M	1.49B	-10.87B	4.02B	5.18B

First Horizon Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.20
• 50DMA: Positive
• 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 24.2 is below the 20-day moving average (MA) of 24.30, above the 50-day MA of 23.43, and above the 200-day MA of 21.43, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 39.19 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	82 Outperform	$10.16B	12.84	10.68%	2.38%	33.87%	12.26%
WTFC	79 Outperform	$9.74B	12.76	12.11%	1.40%	3.58%	13.93%
UMBF	76 Outperform	$9.48B	13.44	12.59%	1.37%	38.81%	10.38%
WBS	76 Outperform	$10.36B	10.89	10.81%	2.49%	4.78%	21.68%
WAL	69 Neutral	$9.84B	10.25	13.50%	1.80%	6.30%	25.28%
FHN	68 Neutral	$11.78B	12.98	11.12%	2.44%	-4.51%	20.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.

First Horizon Elects Sital K. Mody to Board

On October 27, 2025, First Horizon Corporation and its subsidiary, First Horizon Bank, elected Sital K. Mody to their Boards of Directors. Mr. Mody, who is currently the President of the Natural Gas Pipelines Group at Kinder Morgan, Inc., brings extensive experience in energy infrastructure and strategic operations. His appointment includes roles on the Nominating and Corporate Governance Committee and the Compensation Committee. Additionally, the Board approved an amendment to the Bylaws, increasing the number of directors from thirteen to fourteen.

The most recent analyst rating on (FHN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on First Horizon stock, see the FHN Stock Forecast page.

First Horizon Reports Strong Q3 2025 Financial Results

First Horizon Corporation reported strong financial results for the third quarter of 2025, with a net income of $254 million and earnings per share of $0.50, marking an increase from the previous quarter. The company’s performance was bolstered by growth in net interest income and noninterest income, as well as prudent risk management and strategic investments in technology and community partnerships. Despite a decrease in period-end loan balances, average deposits increased, reflecting the company’s adaptability and solid performance in a changing economic environment.

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