First Horizon (NYSE:FHN) Releases Earnings Results, Beats Estimates By $0.06 EPS

First Horizon (NYSE:FHN) released its earnings results on Thursday. The financial services provider reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.46 by $0.06, FiscalAI reports. First Horizon had a net margin of 18.08% and a return on equity of 10.93%. The company had revenue of $892.00 million for the quarter, compared to analysts’ expectations of $863.87 million. During the same quarter in the previous year, the company earned $0.43 EPS.

Here are the key takeaways from First Horizon’s conference call:

• First Horizon says it has reached sustained 15% adjusted ROSCI, returned just under $900M in buybacks and >$300M in dividends in 2025, and has a $1.2B repurchase program with ~$1B authorization remaining.
• 2026 guidance targets 3%–7% revenue growth with mid-single-digit loan growth and continued PPNR improvement, driven by a pickup in mortgage-warehouse lending, stronger C&I originations, and CRE stabilization; NIM is expected in the mid‑340s.
• Deposit pricing was a key driver—average interest-bearing cost fell ~25 bps (spot 2.34%) with a cumulative deposit beta of 64% since Sept 2024, which supported NII and limited margin compression.
• Credit metrics improved—Q4 net charge‑offs were $30M (19 bps), ACL/loan ratio fell to 1.31%, criticized/classified assets declined 11% QoQ, and management says reserves are conservatively positioned while monitoring loan growth and macro assumptions.

First Horizon Trading Up 1.6%

FHN stock opened at $24.44 on Friday. The firm has a fifty day moving average price of $23.17 and a 200 day moving average price of $22.42. First Horizon has a fifty-two week low of $15.19 and a fifty-two week high of $24.91. The firm has a market cap of $12.03 billion, a PE ratio of 14.81, a price-to-earnings-growth ratio of 0.85 and a beta of 0.61. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.95 and a current ratio of 0.96.

First Horizon Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Friday, December 12th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Friday, December 12th. First Horizon’s dividend payout ratio is currently 36.36%.

Insiders Place Their Bets

In other First Horizon news, EVP David T. Popwell sold 155,149 shares of the stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $21.31, for a total transaction of $3,306,225.19. Following the completion of the transaction, the executive vice president owned 307,432 shares in the company, valued at $6,551,375.92. This trade represents a 33.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Jeff L. Fleming sold 7,619 shares of First Horizon stock in a transaction on Wednesday, November 12th. The stock was sold at an average price of $21.74, for a total transaction of $165,637.06. Following the completion of the transaction, the chief accounting officer directly owned 128,626 shares of the company’s stock, valued at $2,796,329.24. The trade was a 5.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.87% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On First Horizon

Several large investors have recently added to or reduced their stakes in FHN. Kestra Investment Management LLC increased its stake in shares of First Horizon by 873.1% during the 2nd quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider’s stock worth $34,000 after purchasing an additional 1,458 shares during the last quarter. Geneos Wealth Management Inc. boosted its holdings in First Horizon by 156.7% in the first quarter. Geneos Wealth Management Inc. now owns 1,794 shares of the financial services provider’s stock worth $35,000 after purchasing an additional 1,095 shares in the last quarter. Triumph Capital Management acquired a new position in First Horizon during the third quarter worth $77,000. CIBC Private Wealth Group LLC raised its holdings in First Horizon by 80.1% during the third quarter. CIBC Private Wealth Group LLC now owns 5,422 shares of the financial services provider’s stock valued at $123,000 after buying an additional 2,411 shares in the last quarter. Finally, Danske Bank A S bought a new position in First Horizon during the third quarter valued at about $124,000. 80.28% of the stock is owned by institutional investors.

First Horizon declared that its board has approved a share repurchase plan on Monday, October 27th that permits the company to buyback $1.20 billion in shares. This buyback authorization permits the financial services provider to purchase up to 11.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Key Stories Impacting First Horizon

Here are the key news stories impacting First Horizon this week:

• Positive Sentiment: Q4 beat — First Horizon reported $0.52 GAAP EPS vs. $0.46 consensus and revenue of $892M vs. ~$864M expected; Q4 net margin and ROE remained solid. Read More.
• Positive Sentiment: Full‑year strength — 2025 net income available to common shareholders rose ~29% to $956M (NIAC) and adjusted NIAC rose 15% to $968M, supporting a firmer earnings outlook and showing revenue/credit strength. Read More.
• Positive Sentiment: Loan and deposit momentum — Management emphasized loan growth and deposit discipline as drivers of outperformance, a mix investors like because it supports revenue and preserves margin while controlling funding costs. Read More.
• Positive Sentiment: Earnings call tone — The Q4 call highlighted strong profits and “manageable risks,” which reassures investors about credit and rate‑cycle exposure; management also provided slides/transcript for deeper review. Read More.
• Neutral Sentiment: Docs & detail available — Full earnings presentation and call transcript are posted (useful for modeling and conference‑call follow up). Read More. • Read More.
• Neutral Sentiment: Analyst reads — Coverage pieces (Zacks, TipRanks summaries) dig into key metrics and what to watch (credit trends, NIM, loan mix); these shape medium‑term estimates but contain no major surprises so far. Read More.

Analyst Ratings Changes

Several brokerages have recently commented on FHN. Citigroup boosted their price objective on First Horizon from $25.00 to $28.00 and gave the company a “buy” rating in a research report on Tuesday, December 30th. DA Davidson raised First Horizon from a “hold” rating to a “strong-buy” rating in a research note on Friday, December 19th. TD Cowen boosted their price target on First Horizon from $24.00 to $26.00 and gave the stock a “hold” rating in a report on Wednesday, January 7th. Baird R W lowered shares of First Horizon from a “strong-buy” rating to a “hold” rating in a report on Thursday, December 11th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of First Horizon from $23.00 to $27.00 and gave the company a “neutral” rating in a research report on Tuesday, December 16th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $26.00.

First Horizon Company Profile

First Horizon Corporation, headquartered in Memphis, Tennessee, is a diversified financial services company providing an array of retail, commercial and wealth management solutions. As the largest bank-based financial services firm in Tennessee, First Horizon operates through a network of branches and digital platforms across the Southeastern United States, offering personal and business banking, mortgage origination and servicing, payment solutions and treasury management services.

Tracing its origins to the First National Bank of Memphis established in 1864, First Horizon has grown through strategic acquisitions and organic expansion to serve customers in Tennessee, Texas, North Carolina, South Carolina, Georgia and Florida.