FHN earnings analysis
What we found in FHN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.53
- Gross margin
- 68%
What they said about what is next.
Management anticipates Q2 2026 revenue between $1.25 billion and $1.35 billion.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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