The Bull Case For First Horizon (FHN) Could Change Following Q3 Profit Jump and Fresh Buybacks – Learn Why

• First Horizon Corporation recently reported third quarter 2025 earnings, posting net income of US$262 million and basic earnings per share of US$0.5, both figures improved from the previous year, alongside continued share repurchases for a total of over 32.9 million shares since October 2024.
• Management maintained its full-year 2025 revenue guidance of flat to up 4%, reiterated that the company is not for sale amid M&A speculation, and credited loan yield expansion and growth in the mortgage warehouse segment for supporting quarterly performance.
• We’ll review how First Horizon’s robust loan yield and margin improvement may influence its investment narrative moving forward.

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First Horizon Investment Narrative Recap

To see long-term value in First Horizon, investors need confidence in the bank’s ability to sustain margin improvement, loan growth, and capital returns despite industry pressures. The recent quarterly results, highlighted by strong net income and revenue stability, reinforce the short-term investment thesis, although ongoing concerns around rising charge-offs and broader macroeconomic uncertainty mean the biggest risk, credit quality and potential recession impacts, remains material and unchanged for now.

The company’s consistency in share repurchases, with nearly 33 million shares bought back since October 2024, stands out as highly relevant. This commitment not only supports earnings per share but signals management’s ongoing belief in the company’s fundamental strength, which may help buffer short-term volatility tied to shifting margins or economic headwinds.

In contrast, investors should also be aware of the potential stress on credit quality from increasing net charge-offs and how that could impact earnings in coming quarters if...

Read the full narrative on First Horizon (it's free!)

First Horizon's outlook forecasts $3.7 billion in revenue and $965.0 million in earnings by 2028. This scenario assumes annual revenue growth of 6.7% and a $149.0 million increase in earnings from the current $816.0 million.

Uncover how First Horizon's forecasts yield a $24.32 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for First Horizon range widely from US$24.32 to US$37.45 per share. While participants hold differing views, the recent focus on managing deposit costs and expanding net interest margins continues to shape expectations for future financial performance.

Explore 3 other fair value estimates on First Horizon - why the stock might be worth as much as 79% more than the current price!

Build Your Own First Horizon Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Horizon research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free First Horizon research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Horizon's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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