Regional banking company First Horizon (NYSE: FHN) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 6.4% year on year to $887 million. Its non-GAAP profit of $0.54 per share was 3.8% above analysts’ consensus estimates.
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First Horizon (FHN) Q2 CY2026 Highlights:
- Net Interest Income: $676 million vs analyst estimates of $680.4 million (5.5% year-on-year growth, 0.6% miss)
- Net Interest Margin: 3.5% vs analyst estimates of 3.5% (in line)
- Revenue: $887 million vs analyst estimates of $881 million (6.4% year-on-year growth, 0.7% beat)
- Efficiency Ratio: 59.9% vs analyst estimates of 57.5% (234.8 basis point miss)
- Adjusted EPS: $0.54 vs analyst estimates of $0.52 (3.8% beat)
- Tangible Book Value per Share: $14.53 vs analyst estimates of $14.56 (7.1% year-on-year growth, in line)
- Market Capitalization: $12.21 billion
Company Overview
Tracing its roots back to 1864 during the Civil War era, First Horizon (NYSE: FHN) is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states.
Sales Growth
Net interest income and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Over the last five years, First Horizon grew its revenue at a weak 1.8% compounded annual growth rate. This was below our standards and is a tough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First Horizon’s annualized revenue growth of 4.7% over the last two years is above its five-year trend, which is encouraging. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First Horizon reported year-on-year revenue growth of 6.4%, and its $887 million of revenue exceeded Wall Street’s estimates by 0.7%.
Net interest income made up 75.3% of the company’s total revenue during the last five years, meaning lending operations are First Horizon’s largest source of revenue.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
First Horizon’s TBVPS grew at a solid 6.2% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 9.1% annually over the last two years from $12.22 to $14.53 per share.
Over the next 12 months, Consensus estimates call for First Horizon’s TBVPS to grow by 6.6% to $15.49, lousy growth rate.
Key Takeaways from First Horizon’s Q2 Results
It was good to see First Horizon narrowly top analysts’ revenue expectations this quarter. On the other hand, its net interest income slightly missed and its EPS slightly exceeded Wall Street’s estimates. Overall, this was not the best quarter. The stock traded up 2.5% to $26.36 immediately after reporting.
So do we think First Horizon is an attractive buy at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
