First Horizon (FHN): Q1 2026 EPS Tops Estimates at $0.53 Amid Solid Profitability
Key Takeaways
- First Horizon reported diluted earnings per share (EPS) of $0.53 for Q1 2026, beating consensus estimates of $0.49 by $0.04.
- Net income available to common shareholders reached $257 million, a 21% increase year-over-year from Q1 2025.
- Total revenue came in at $862 million, slightly below the $869 million consensus expectation.
- Return on tangible common equity (ROTCE) stood at 15.1%, marking the third straight quarter above 15%.
- Net interest margin (NIM) expanded to 3.52%, supported by 6% year-over-year growth in net interest income (NII).
- Provision for credit losses was $15 million, with net charge-offs at 18 basis points.
First Horizon's Q1 Earnings in Context
First Horizon Corporation (FHN), a leading regional bank with a strong focus on the Sun Belt region, delivered its Q1 2026 earnings on April 15. These results offer valuable insights into the bank's resilience amid shifting interest rates and economic uncertainty. From what I see, investors are paying close attention to deposit growth, loan quality, and profitability metrics, particularly as higher funding costs challenge margins industry-wide. Following a year of targeted deposit pricing and commercial loan growth, this report demonstrates FHN's discipline in expense management and fee income, reinforcing its ability to generate shareholder value in a competitive environment.
A Closer Look at the Reported Numbers
First Horizon (FHN) showcased robust profitability in its first quarter 2026 results, even with a slight revenue miss. Diluted EPS came in at $0.53, surpassing analyst consensus of around $0.49 to $0.50, thanks to stronger NII and tight expense control. Net income available to common shareholders climbed 21% to $257 million from $212 million in Q1 2025.
Total revenue reached $862 million, falling short of the $869 million estimate by about 0.8%, largely due to weaker noninterest income. NII rose 6% year-over-year, aided by NIM expansion to 3.52%, while average loans grew modestly to $64.2 billion. Deposits held steady at $67.5 billion. Credit quality remained solid, with provision expense at $15 million and net charge-offs at 18 basis points. The 15.1% ROTCE highlights efficient capital deployment. I also checked FHN against peers using Tickeron’s AI Screener, which confirmed its strong positioning in the regional banking space.
Market Reaction and Sentiment
Shares of First Horizon (FHN) had a mixed initial response after the Q1 2026 earnings release, with pre-market trading swinging between a 2% gain and a minor dip. The EPS beat and ROTCE strength drew positive notes from investors, though the revenue shortfall tempered some optimism. Overall sentiment stays constructive around the bank's profitability trajectory and Sun Belt focus, despite ongoing sector headwinds from deposit costs.
Tickeron’s AI Screener: A Tool I Use for Deeper Insights
In my research process, I frequently turn to Tickeron’s AI Screener, an AI-powered tool for discovering stocks and ETFs. It lets me filter thousands of names based on technical patterns, fundamentals, trends, volatility, and AI signals, using criteria like industry, market cap, indicators, price patterns, and performance metrics. This has proven efficient for spotting trade ideas, breakouts, and opportunities—much faster than manual scans. One thing that stands out is how it helps contextualize results like FHN's, and I’m watching it closely for similar regional bank setups.
Looking Ahead: Guidance and Factors to Watch
First Horizon (FHN) provided 2026 revenue growth guidance of 3% to 7%, signaling confidence in its commercial and industrial loan pipelines and deposit repricing efforts. Management sees potential for continued NIM expansion as funding costs level out.
Key items for investors include deposit betas and C&I loan growth, which fueled Q1 performance. Credit metrics warrant monitoring, as low net charge-offs and provisioning underpin asset quality against economic risks. Future updates on flat 2026 expenses and capital returns through buybacks will be telling. Broader influences like Fed rate moves and Sun Belt economic trends could shape margins and demand, while balanced fee income from wealth management and payments adds support. This is important because it positions FHN for steady progress.
Disclaimer
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FHN in upward trend: price rose above 50-day moving average on June 04, 2026
FHN moved above its 50-day moving average on June 04, 2026 date and that indicates a change from a downward trend to an upward trend. In of 33 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where FHN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 26, 2026. You may want to consider a long position or call options on FHN as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FHN advanced for three days, in of 320 cases, the price rose further within the following month. The odds of a continued upward trend are .
FHN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 304 cases where FHN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for FHN turned negative on June 01, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FHN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.360) is normal, around the industry mean (1.259). P/E Ratio (12.141) is within average values for comparable stocks, (17.155). FHN's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.753). Dividend Yield (0.026) settles around the average of (0.032) among similar stocks. P/S Ratio (3.597) is also within normal values, averaging (3.643).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. FHN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock slightly worse than average.
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a regional bank
Industry RegionalBanks