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Earnings analysis · 10-Q

FHN earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

First Horizon Corporation (FHN) reported Q1 2026 results with diluted EPS of $0.53, beating estimates by approximately 8.2%. However, revenue decreased to $862 million, falling slightly short of projections and lower…

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First Horizon Corporation (FHN) reported Q1 2026 results with diluted EPS of $0.53, beating estimates by approximately 8.2%. However, revenue decreased to $862 million, falling slightly short of projections and lower than the prior year, indicating a challenging revenue environment despite improved earnings per share.

Read the original on SEC.gov

Reported figures

Earnings per share
$0.53
Gross margin
68%

What stood out

  • EPS Exceeds Expectations

    FHN's diluted EPS for Q1 2026 was reported at $0.53, surpassing the consensus estimate of $0.49 by 8.2%.

  • Gross Margin Improvement

    The gross margin improved to 68.0% compared to 67.3% in the previous quarter, reflecting better cost management.

  • Strong Pre-provision Net Revenue

    Pre-provision net revenue increased to $357 million from $325 million in Q1 2025, showing progression year-over-year.

  • Decrease in Noninterest Expenses

    Noninterest expenses increased only marginally by $18 million year-over-year, indicating effective expense control.

  • Solid Return on Average Common Equity

    The return on average common equity increased to 12.26%, up from 10.30% in the same period last year.

  • Improved Tangible Common Equity

    Tangible common equity increased from $6.68 billion in Q1 2025 to $6.82 billion in Q1 2026.

What to watch

  • Revenue Shortfall

    Actual revenue of $862 million was below the expected $868 million, indicating potential challenges in sales.

  • Declining Year-over-Year Revenue

    Revenue decreased compared to $812 million in Q1 2025, highlighting a potential trend of declining revenues.

  • Free Cash Flow Decline

    Free cash flow decreased to a negative position compared to previous quarters, which may raise liquidity concerns.

Management's outlook

Management anticipates Q2 2026 revenue between $1.25 billion and $1.35 billion.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.