First Horizon (NYSE:FHN) Announces Earnings Results

First Horizon (NYSE:FHN) announced its quarterly earnings data on Wednesday. The financial services provider reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.02, FiscalAI reports. First Horizon had a net margin of 20.54% and a return on equity of 11.65%. The firm had revenue of $890.00 million for the quarter, compared to the consensus estimate of $878.42 million. During the same period in the prior year, the company posted $0.45 earnings per share.

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

• First Horizon reported solid second-quarter momentum, with adjusted EPS up 20% year over year and period-end loans up about $2 billion versus Q2 2025. Management said the results reflect disciplined execution and support continued growth into the second half of the year.
• Net interest margin compressed 3 basis points to the high 3.40% range, but net interest income still rose $9 million on strong loan growth. Management expects NIM to stay in the mid-to-high 3.40s for 2026, with future movement tied largely to rate changes and deposit costs.
• Deposits increased by $1.6 billion sequentially, driven mainly by broker deposits and seasonal campaigns, while interest-bearing deposit costs rose modestly. Executives said pricing remains highly competitive and that the trajectory will depend on rate moves and loan growth in the back half of the year.
• Commercial lending remained a key driver, with period-end loans up $953 million quarter over quarter and new commitments up more than 50% year over year. Management described the pipeline as strong and said loan demand remains healthy despite competitive pricing.
• Credit metrics stayed constructive, with net charge-offs at 20 basis points, NPLs down, and the ACL ratio at 1.24%. Management said consumer-sensitive areas such as trucking, auto, and restaurants remain under watch, but overall credit performance continues to be resilient.

First Horizon Stock Down 3.0%

FHN stock opened at $24.95 on Thursday. The firm has a 50-day moving average price of $24.72 and a 200-day moving average price of $24.25. First Horizon has a 12 month low of $19.80 and a 12 month high of $26.56. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $11.84 billion, a P/E ratio of 12.47, a price-to-earnings-growth ratio of 1.00 and a beta of 0.60.

First Horizon Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th were issued a $0.17 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.7%. First Horizon’s dividend payout ratio is 34.00%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Keefe, Bruyette & Woods boosted their target price on shares of First Horizon from $25.00 to $26.00 and gave the company a “market perform” rating in a research report on Thursday, April 16th. Evercore set a $27.00 price target on shares of First Horizon in a research report on Monday, July 6th. Zacks Research cut shares of First Horizon from a “strong-buy” rating to a “hold” rating in a research note on Friday, March 20th. JPMorgan Chase & Co. boosted their price objective on shares of First Horizon from $26.00 to $28.50 and gave the company a “neutral” rating in a research report on Wednesday, July 1st. Finally, Raymond James Financial upped their target price on First Horizon from $26.00 to $28.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 1st. Nine equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $27.12.

Hedge Funds Weigh In On First Horizon

A number of institutional investors have recently added to or reduced their stakes in FHN. Kestra Investment Management LLC boosted its position in First Horizon by 873.1% in the second quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider’s stock valued at $34,000 after buying an additional 1,458 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in shares of First Horizon by 156.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,794 shares of the financial services provider’s stock worth $35,000 after buying an additional 1,095 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in shares of First Horizon in the 4th quarter valued at $51,000. Triumph Capital Management bought a new position in shares of First Horizon in the 3rd quarter valued at $77,000. Finally, Wilkerson Advisory Group LLC acquired a new stake in shares of First Horizon during the 4th quarter valued at $86,000. 80.28% of the stock is currently owned by institutional investors and hedge funds.

First Horizon News Summary

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

• Positive Sentiment: First Horizon reported Q2 EPS of $0.54 and revenue of $890 million, both above Wall Street estimates, while net income to common shareholders rose 12% year over year to $260 million. Article Title
• Positive Sentiment: Several reports highlighted strong loan growth and improving earnings momentum from the Q2 call, suggesting the bank is executing well on core operations. Article Title
• Positive Sentiment: Unusual options activity also pointed to increased investor interest, with call volume far above normal, which can sometimes signal bullish expectations. Article Title
• Neutral Sentiment: One analysis said the earnings beat was helped by a low tax rate rather than purely stronger core operations, which tempers the quality of the upside. Article Title
• Negative Sentiment: That same bearish take flagged higher funding costs, brokered deposits, and margin pressure, noting net interest margin compressed in Q2 and could face near-term headwinds. Article Title

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.