First Horizon (NYSE:FHN) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Posted by Stanley Muller on Oct 16th, 2026

First Horizon (NYSE:FHN – Get Free Report) issued its earnings results on Thursday. The financial services provider reported $0.53 EPS for the quarter, topping the consensus estimate of $0.52 by $0.01, FiscalAI reports. The company had revenue of $883.00 million during the quarter, compared to the consensus estimate of $889.18 million. First Horizon had a return on equity of 12.06% and a net margin of 21.12%. During the same period in the previous year, the company posted $0.51 EPS.

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

Strategic mortgage portfolio sale — First Horizon plans to sell approximately $4.5 billion of low-yielding, largely non-relationship mortgage loans, reducing its loan-to-deposit ratio to about 88% and improving balance-sheet flexibility.
Management expects the transaction to provide approximately 4% EPS accretion and 150 basis points of ROTCE improvement in 2027, with additional upside from redeploying proceeds into higher-yielding commercial loans.
Core client deposits grew by more than $1 billion during the quarter, while management expects net interest margin to improve from 3.48% into the 350-basis-point range; share repurchases are expected to resume in the fourth quarter.
Third-quarter adjusted EPS was $0.53, pressured by lower fee income, higher expenses, and provision costs; revenue expectations were reduced due to weaker mortgage warehouse activity and an unusually strong fixed-income result in the prior-year fourth quarter.
Credit metrics were mixed but broadly stable: nonperforming loans remained at 81 basis points, net charge-offs rose to 22 basis points, and the allowance for credit losses increased slightly to 1.25% of loans.

First Horizon Stock Performance

FHN opened at $22.85 on Friday. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.97 and a quick ratio of 0.96. The business has a fifty day simple moving average of $24.20 and a 200 day simple moving average of $24.52. First Horizon has a 1 year low of $19.80 and a 1 year high of $26.56. The company has a market capitalization of $10.83 billion, a PE ratio of 10.93, a price-to-earnings-growth ratio of 0.97 and a beta of 0.61.

First Horizon Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were paid a $0.17 dividend. The ex-dividend date was Friday, September 11th. This represents a $0.68 annualized dividend and a yield of 3.0%. First Horizon’s payout ratio is 32.54%.

Wall Street Analyst Weigh In

Several brokerages have issued reports on FHN. Wells Fargo & Company cut their price target on First Horizon from $28.00 to $25.00 and set an “equal weight” rating for the company in a report on Wednesday, September 30th. Evercore reaffirmed a “hold” rating and set a $25.00 price objective on shares of First Horizon in a research report on Thursday, October 1st. Wall Street Zen downgraded shares of First Horizon from a “hold” rating to a “sell” rating in a report on Sunday, October 11th. Fundamental Research set a $28.50 price objective on shares of First Horizon in a research report on Wednesday, July 1st. Finally, National Bank Financial set a $30.00 price objective on shares of First Horizon in a research report on Tuesday, September 8th. Eight analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $27.07.

Check Out Our Latest Analysis on FHN

Insider Buying and Selling

In other First Horizon news, EVP Elizabeth Ardoin sold 18,313 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $24.85, for a total transaction of $455,078.05. Following the transaction, the executive vice president owned 340,368 shares in the company, valued at $8,458,144.80. This trade represents a 5.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.91% of the stock is currently owned by corporate insiders.

First Horizon News Summary

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

Positive Sentiment: Adjusted earnings exceeded expectations. First Horizon reported earnings of $0.53 per share, up from $0.51 a year earlier and slightly above the $0.52 analyst consensus. First Horizon third-quarter earnings report
Positive Sentiment: Management expects strategic benefits from the portfolio reshaping. First Horizon plans to sell approximately $4.5 billion of consumer mortgages, allowing it to reduce exposure to lower-return assets and redeploy capital toward loans and businesses with better earnings and growth potential. First Horizon strategic balance-sheet changes
Neutral Sentiment: The transaction creates near-term disruption but could improve the earnings mix. The earnings call focused on shifting the balance sheet toward stronger risk-adjusted returns, with the benefits expected to develop over time rather than immediately. First Horizon portfolio reshaping earnings call
Negative Sentiment: Revenue fell short of forecasts. Quarterly revenue was $883 million versus the $889.18 million consensus, suggesting operating performance was not uniformly strong despite the per-share earnings beat. First Horizon Q3 2026 earnings
Negative Sentiment: GAAP results swung to a substantial loss. First Horizon posted a $94 million net loss available to common shareholders, or $0.20 per share, primarily reflecting the mortgage-portfolio sale and related repositioning costs. Investors may remain cautious until the planned asset sale translates into stronger recurring profitability. First Horizon mortgage portfolio sale

About First Horizon

(Get Free Report)

First Horizon Corporation (NYSE:FHN) is a financial services company headquartered in Memphis, Tennessee. Through its banking subsidiary, First Horizon Bank, the company provides a range of financial products and services to consumers, businesses, and institutions.

Its main activities include consumer and commercial banking, lending, deposit accounts, treasury and cash-management services, mortgage banking, and investment and wealth-management services. First Horizon also offers capital-markets and investment-banking services through its specialized businesses, serving clients across various industries and market segments.

The company traces its roots to First Tennessee Bank, which was founded in Memphis in 1864.