First Horizon Corporation's Strong Earnings Report for Q4 2025

Core Viewpoint - First Horizon Corporation reported strong earnings for Q4 2025, exceeding expectations with an EPS of $0.52 and revenue of approximately $869.5 million, indicating robust financial performance and positive outlook for 2026 [1][6]. Financial Performance - The net income available to common shareholders (NIAC) for 2025 increased by 29% to $956 million, translating to an EPS of $1.87, which is a 38% increase from the previous year's EPS of $1.36 [3][6]. - In Q4, the NIAC grew by 1% to $257 million, with an EPS of $0.52, and the adjusted NIAC was $259 million, reflecting a 2% increase from Q3 [4][6]. Strategic Initiatives - First Horizon's strong credit quality, limited exposure to commercial real estate, and stable deposit levels have contributed to its solid financial standing [2]. - The company's leadership expressed satisfaction with the strong Q4 performance, which capped off an outstanding year, and indicated a revenue growth forecast of 3% to 7% for 2026, along with an acceleration in loan growth [5][6]. Market Valuation - The company maintains a price-to-earnings (P/E) ratio of 11.8 times the estimated 2026 EPS, suggesting a fair market valuation [2].