First Horizon Corporation, listed as NYSE:FHN, is a financial services company that has recently reported strong earnings for the fourth quarter of 2025. The company exceeded expectations with an earnings per share (EPS) of $0.52, surpassing the estimated $0.46. Revenue also outperformed forecasts, reaching approximately $869.5 million against an expected $842.2 million.
The company's robust performance is further highlighted in the Seeking Alpha earnings call, where executives discussed strategic initiatives and future outlooks. First Horizon's strong credit quality, limited exposure to commercial real estate, and stable deposit levels have contributed to its solid financial standing. The company maintains a price-to-earnings (P/E) ratio of 11.8 times the estimated 2026 EPS, indicating a fair market valuation.
First Horizon's net income available to common shareholders (NIAC) for 2025 increased by 29% to $956 million, translating to an EPS of $1.87. This represents a 38% increase from the previous year's EPS of $1.36. The adjusted NIAC also rose by 15%, reaching $968 million or $1.89 EPS, driven by strong revenue and credit performance.
In the fourth quarter, First Horizon's NIAC grew by 1% to $257 million, with an EPS of $0.52. The adjusted NIAC was $259 million, reflecting a 2% increase from the third quarter. The company's performance was slightly impacted by a net $12 million after-tax reduction, a significant improvement from the $105 million after-tax reduction in 2024.
First Horizon's strategic execution has been a key driver of its impressive earnings growth. The company's leadership expressed satisfaction with the strong fourth-quarter performance, which capped off an outstanding year. The company's guidance indicates a revenue growth of 3% to 7% and an acceleration in loan growth for 2026, although reserve coverage appears slightly inadequate.
