First Horizon (NYSE:FHN) Issues Earnings Results, Beats Expectations By $0.02 EPS

First Horizon (NYSE:FHN) posted its quarterly earnings data on Wednesday. The financial services provider reported $0.54 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.02, FiscalAI reports. First Horizon had a return on equity of 12.06% and a net margin of 21.12%.The firm had revenue of $890.00 million during the quarter, compared to analysts’ expectations of $878.42 million. During the same quarter last year, the business posted $0.45 EPS.

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 Trading Up 1.4%

NYSE FHN opened at $25.29 on Friday. The company has a market cap of $12.01 billion, a P/E ratio of 12.10, a P/E/G ratio of 0.97 and a beta of 0.60. First Horizon has a 12 month low of $19.80 and a 12 month high of $26.56. 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 company has a 50-day moving average of $24.74 and a 200-day moving average of $24.26.

First Horizon Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th were paid a dividend of $0.17 per share. 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 currently 34.00%.

Institutional Investors Weigh In On First Horizon

Institutional investors have recently bought and sold shares of the stock. Kestra Investment Management LLC increased its position in First Horizon by 873.1% during the second 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. grew its stake in shares of First Horizon by 156.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,794 shares of the financial services provider’s stock valued at $35,000 after buying an additional 1,095 shares during the period. Los Angeles Capital Management LLC purchased a new stake in shares of First Horizon during the 4th quarter valued at $51,000. Triumph Capital Management acquired a new stake in shares of First Horizon during the 3rd quarter worth $77,000. Finally, Wilkerson Advisory Group LLC purchased a new position in shares of First Horizon in the 4th quarter worth $86,000. 80.28% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting First Horizon

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

• Positive Sentiment: First Horizon reported Q2 EPS of $0.54, topping analyst expectations and rising from $0.45 a year ago, while revenue also came in ahead of estimates at $890 million. Article Title
• Positive Sentiment: The company highlighted strong loan growth, higher net interest income, and fee income, which support the view that core banking activity is improving. Article Title
• Positive Sentiment: Investor sentiment was also helped by unusually heavy call-option buying, suggesting some traders are positioning for additional upside. Article Title
• Neutral Sentiment: JPMorgan lowered its price target on FHN to $27.00 from $28.50 but kept a neutral rating, indicating limited immediate upside rather than a bearish call. Article Title
• Negative Sentiment: Some market commentary noted the stock fell after the earnings release because expenses increased and capital ratios weakened, raising concerns about margin and balance-sheet pressure. Article Title
• Negative Sentiment: Analysts also flagged funding-cost and deposit-mix concerns, including greater use of brokered funds, which could pressure net interest margin near term. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Wall Street Zen cut shares of First Horizon from a “hold” rating to a “sell” rating in a research note on Saturday, June 27th. Barclays cut their price objective on shares of First Horizon from $30.00 to $29.00 and set an “overweight” rating for the company in a research report on Tuesday, April 7th. Autonomous Res downgraded shares of First Horizon from a “strong-buy” rating to a “strong sell” rating in a research note on Wednesday, April 29th. Wells Fargo & Company raised their target price on shares of First Horizon from $25.00 to $26.00 and gave the stock an “equal weight” rating in a research report on Monday, July 6th. Finally, UBS Group reaffirmed a “buy” rating on shares of First Horizon in a research note on Thursday. Nine equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $27.16.

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.