First Horizon Corporation

Q2 FY26Banks

First Horizon Corporation Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹24

Market cap₹11.5K Cr

P/E12.3

Published30 May 2026

What the Q2 FY26 call signalled

2 of 4 strong

RevenueRank 4

MarginRank 3

CapexYes

Order bookYes

Not discussed on this call: fundraise.

The short version

- Revenue guidance includes multiple ranges reflecting trade-offs between Net Interest Income (NII), fee income, and mortgage warehouse balances depending on interest rate movements. - First Horizon started 2026 with strong momentum, including a 15%+ adjusted ROTCE for the third consecutive quarter.

From First Horizon Corporation's Q2 FY26 earnings-call transcript · updated 30 May 2026.

Revenue & Sales Performance

Rank 4

Revenue guidance includes multiple ranges reflecting trade-offs between Net Interest Income (NII), fee income, and mortgage warehouse balances depending on interest rate movements.
Loan growth is expected around mid-single digits, with a strong start of 3% year-over-year growth already in place.
Revenue growth guidance is between 3% to 7%, influenced by economic growth and rate environment; higher revenue could come from fee income or NII, but no mortgage refi wave is built into guidance.
CRE (Commercial Real Estate) pipelines are strong, expected to contribute positively later in the year following slower project starts previously.
Strong momentum in C&I (Commercial & Industrial) loans, evenly spread across regions and specialty lines.
No material assumptions of expense reductions included in $100 million incremental core pre-provision net revenue (PPNR) opportunity; mainly from deeper client relationships and growth.
Management optimistic but notes greater downside risk than upside in economic growth outlook.

Profitability & Margins

First Horizon started 2026 with strong momentum, including a 15%+ adjusted ROTCE for the third consecutive quarter.
Earnings per share (EPS) in Q1 2026 was $0.53, up $0.11 compared to Q1 2025.
Net interest income (NII) grew 6% year-over-year, outpacing loan growth of 3%, highlighting profitable growth focus.
Revenue guidance anticipates 3% to 7% growth, driven by either fee income and countercyclical businesses or net interest income and loan growth.
The company expects flat year-over-year operating expenses, with investments in new hires and technology driving efficiency.
Loan pipelines remain strong, especially in C&I and CRE, supporting mid-single-digit loan growth expectations.
Long-term objective includes achieving over $100 million in pre-provision net revenue (PPNR) improvement by 2026.
Management remains optimistic about stacking strong quarters to drive sustained profitability despite economic uncertainties.

See what First Horizon Corporation said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

The company is making strategic investments in talent, technology, and tools to enhance associate effectiveness and scale revenue without proportionally increasing back-office costs (p6).
There is a planned consolidation into a new hub in Charlotte, which is included in the current expense guide (p11).
Expense guidance is flat year-over-year, built with investments in new hires and branch expansions factored in (p11).
AI-related cost savings or impacts are not currently included in the $100 million+ PPNR opportunity; that opportunity focuses solely on revenue growth through deepening client relationships (p6).
Continued focus on technology investments over recent years supports maintaining flat expenses despite growth initiatives (p6).
No explicit mention of large capital expenditures outside of these areas in the discussed quarters.

Fundraising & Capital Structure

During the quarter, the company issued $400 million of Series H preferred stock, which increased their Tier 1 capital ratio by 44 basis points to 11.95%.
They repurchased approximately $230 million of common shares in the quarter and have about $765 million remaining in their current Board authorization for buybacks.
There is no specific mention of plans for new fundraising through debt or equity beyond these activities in the provided text.
The company remains focused on disciplined capital deployment and opportunistic share repurchases, with a CET1 target updated to 10.5%.
They continue to evaluate capital management thoughtfully but have not announced any new debt or equity fundraising plans.

See what First Horizon Corporation said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

Commercial and Industrial (C&I) loan pipelines remain very strong and continue to show positive momentum across regional banking regions and specialty lines of business.
Lending pipelines have not been significantly impacted by recent geopolitical uncertainties, including the Middle East conflict.
Commercial Real Estate (CRE) pipelines are building and are as strong as they have been since 2021-2022, signaling potential for net growth later in the year.
Mortgage warehouse loan balances are up approximately 35% year-over-year, with an expected seasonal increase in Q2 supported by market share gains.
Overall, there is optimism for profitable loan growth throughout the year, driven by strong demand and focused relationship lending.

How does First Horizon Corporation rank vs peers in Banks?

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Frequently Asked Questions

What were First Horizon Corporation Q2 FY26 results?

What is First Horizon Corporation share price analysis?

First Horizon Corporation currently shows a neutral. The stock trades at a P/E of 12.3 with a market cap of $11,495. Investors should review the full earnings analysis for detailed insights.

Is First Horizon Corporation planning capital expenditure?

- The company is making strategic investments in talent, technology, and tools to enhance associate effectiveness and scale revenue without proportionally increasing back-office costs (p6).

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.