5 Revealing Analyst Questions From First Horizon’s Q4 Earnings Call

Regional banking company First Horizon beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 7.8% year on year to $888 million. Its non-GAAP profit of $0.52 per share was 12.1% above analysts’ consensus estimates.

First Horizon (FHN) Q4 CY2025 Highlights:

• Revenue: $888 million vs analyst estimates of $863.3 million (7.8% year-on-year growth, 2.9% beat)
• Adjusted EPS: $0.52 vs analyst estimates of $0.46 (12.1% beat)
• Market Capitalization: $11.85 billion

StockStory’s Take

First Horizon’s fourth quarter results were marked by notable revenue and profit outperformance compared to Wall Street expectations, prompting a positive market response. Management credited the quarter’s momentum to disciplined deposit cost management, expanded lending to mortgage companies, and robust performance across the commercial and industrial loan portfolio. CEO D. Bryan Jordan noted, “We delivered increased pre-provision net revenue and return on tangible common equity, hitting 15% in 2025.” Fee income also rose, supported by higher activity in equipment finance leasing. Meanwhile, the bank maintained tight control of credit quality and continued to return capital to shareholders through share repurchases and dividends.

Looking to 2026, First Horizon’s guidance is underpinned by anticipated mid-single-digit loan growth, prudent expense management, and continued investment in technology and client-facing talent. CFO Hope Dmuchowski emphasized the importance of balancing revenue growth with stable expenses, stating, “Our expense outlook remains flattish, with incremental incentive expenses tied to higher countercyclical revenue.” Management highlighted opportunities in treasury management, wealth management, and commercial lending as key drivers for sustained profitability. The company remains focused on deepening client relationships and leveraging a diversified business model to navigate a range of economic scenarios.

Key Insights from Management’s Remarks

Management attributed quarterly performance to lower deposit costs, increased commercial lending activity, and strong execution in fee-earning businesses, while emphasizing continued capital returns and expense discipline.

• Deposit cost improvement: The average rate paid on interest-bearing deposits declined, which management described as the largest contributor to net interest income and margin stability. This was achieved through disciplined pricing and targeted growth in treasury management products.
• Loan growth momentum: The bank achieved notable growth in loans to mortgage companies, driven by increased refinancing activity and strong originations in commercial and industrial lending. Management noted this momentum was broad-based across regions and specialty business lines.
• Fee income uplift: Higher service charges and equipment finance lease income contributed to fee growth, reflecting increased client activity. Management specifically highlighted an uptick in equipment finance as a supporting factor.
• Expense discipline maintained: Adjusted expenses remained controlled, with higher personnel costs tied to incentive compensation from meeting revenue targets. Technology and marketing investments were offset by reductions in other categories.
• Credit quality stability: Net charge-offs remained in line with expectations, and management recorded no provision for credit losses in the quarter. Improved credit trends allowed for a reduction in reserves, reflecting progress in resolving non-pass credits.

Drivers of Future Performance

First Horizon’s 2026 outlook is shaped by expectations for healthy loan growth, expense control, and further deepening of client relationships, balanced against potential macroeconomic uncertainties.

• Loan and deposit growth focus: Management expects mid-single-digit loan growth, with upside potential if refinancing and commercial lending momentum continue. Deposit growth will be supported by new treasury management products and expanded retail banking initiatives.
• Expense and investment balance: While expenses are projected to remain flat, increases may occur if revenue from commission-based businesses exceeds expectations. Ongoing investments in technology and branch network expansion are prioritized to support growth.
• Credit and margin risks: Management identified uncertainty around deposit costs and macroeconomic factors, such as Federal Reserve policy and liquidity in the banking system, as key risks. Credit quality is expected to remain strong, but reserves will be managed dynamically based on loan growth and economic outlook.

Catalysts in Upcoming Quarters

Moving forward, the StockStory team will monitor (1) sustained momentum in loan growth—particularly in commercial and mortgage-related segments, (2) the ability to maintain deposit cost advantages and expand treasury management penetration, and (3) disciplined expense management amid ongoing technology and branch investments. Progress on deepening client relationships and any shifts in credit quality or macroeconomic conditions will also be important signposts for execution.

First Horizon currently trades at $24.28, in line with $24.05 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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Regional banking company First Horizon reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 7.8% year on year to $888 million. Its non-GAAP profit of $0.52 per share was 12.1% above analysts’ consensus estimates.

First Horizon (FHN) Q4 CY2025 Highlights:

• Net Interest Income: $676 million vs analyst estimates of $657.4 million (7.3% year-on-year growth, 2.8% beat)
• Net Interest Margin: 3.5% vs analyst estimates of 3.4% (11.1 basis point beat)
• Revenue: $888 million vs analyst estimates of $863.3 million (7.8% year-on-year growth, 2.9% beat)
• Efficiency Ratio: 61.3% vs analyst estimates of 60.1% (120.8 basis point miss)
• Adjusted EPS: $0.52 vs analyst estimates of $0.46 (12.1% beat)
• Tangible Book Value per Share: $14.20 vs analyst estimates of $14.05 (10.5% year-on-year growth, 1.1% beat)
• Market Capitalization: $11.84 billion

Company Overview

Tracing its roots back to 1864 during the Civil War era, First Horizon is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states.

Sales Growth

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, First Horizon’s revenue grew at a sluggish 5.4% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a poor baseline for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. First Horizon’s recent performance shows its demand has slowed as its annualized revenue growth of 2.7% over the last two years was below its five-year trend.

This quarter, First Horizon reported year-on-year revenue growth of 7.8%, and its $888 million of revenue exceeded Wall Street’s estimates by 2.9%.

Net interest income made up 74% of the company’s total revenue during the last five years, meaning lending operations are First Horizon’s largest source of revenue.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

First Horizon’s TBVPS grew at a solid 6.8% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 8.2% annually over the last two years from $12.13 to $14.20 per share.

Over the next 12 months, Consensus estimates call for First Horizon’s TBVPS to grow by 4.9% to $14.90, lousy growth rate.

Key Takeaways from First Horizon’s Q4 Results

We enjoyed seeing First Horizon beat analysts’ revenue expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. While efficiency ratio missed, EPS ended up beating. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $24.25 immediately after reporting.

First Horizon put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company First Horizon will be reporting results this Thursday before market hours. Here’s what you need to know.

First Horizon beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $893 million, up 7.5% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Is First Horizon a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting First Horizon’s revenue to grow 4.8% year on year to $863.3 million, improving from the 3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Horizon has missed Wall Street’s revenue estimates three times over the last two years.

Looking at First Horizon’s peers in the banks segment, only JPMorgan Chase has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 6.9%. The stock was down 92.9% on the results. Read our full analysis of JPMorgan Chase’s earnings results here.

Investors in the banks segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. First Horizon is up 1.3% during the same time and is heading into earnings with an average analyst price target of $26.62 (compared to the current share price of $24.17).