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Can First Horizon Sustain Its Revenue Growth After a Strong 2025?
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Key Takeaways
FHN reported 2025 net revenues of $3.42B, up 7% y/y, driven by higher NII and non-interest income.
FHN posted a six-year NII CAGR of 13.8%, supported by loan growth and lower deposit pricing.
FHN expects 2026 adjusted revenues to grow 3-7% on a y/y basis.
First Horizon Corporation (FHN - Free Report) posted strong revenue growth in 2025. The company reported net revenues of $3.42 billion, up 7% on a year-over-year basis.
Solid loan expansion, rising net interest income (NII) and improving fee-based income are expected to support FHN’s revenues, going forward. The company’s focus on organic growth and disciplined balance sheet management is also expected to help sustain its top-line performance.
Key Drivers of FHN’s Revenue Growth
NII, the primary contributor to revenues, has been resilient over time. The metric witnessed a six-year CAGR of 13.8%, ending in 2025. The rally was primarily driven by lower deposit pricing and higher loan balances.
Rising loan and deposit repricing are expected to support NII growth, going forward. The company’s loans and leases saw a compound annual growth rate (CAGR) of 12.9% in the last six years (2019-2025). Deposits witnessed a CAGR of 13% over the same period. The improvement was driven by acquisitions made during the period and by the strength of a well-diversified loan portfolio.
Management expects loan growth to continue in the upcoming period, supported by strength in the commercial and industrial portfolio and steady mortgage lending activity. Additionally, deposit balances are likely to increase, driven by growth in promotional and non-interest-bearing deposits, as well as solid customer retention.
The Federal Reserve has reduced interest rates by 75 bps in 2025 and has indicated the possibility of an additional cut in 2026. As such, the company's NII is expected to improve in the upcoming period, given stabilizing funding costs.
Non-interest income also remains a key component of revenues. Over the last six years (2019-2025), non-interest income saw a CAGR of 3.4%, reflecting steady improvement in fee-based activities. In 2025, fixed income revenue and mortgage banking revenue growth supported fee income. As First Horizon continues to expand its client base and grow deposits and loans, fee income from deposit account services and lending activities is expected to increase further.
FHN’s Revenue Growth Outlook for 2026
For 2026, the company expects adjusted revenues to rise 3-7% from the $3.42 billion reported in 2025.
The Zacks Consensus Estimates for FHN’s 2026 sales is pegged at $3.6 billion, indicating a year-over-year rise of 4.5%.
Sales Estimates
Image Source: Zacks Investment Research
FHN shares have gained 5.1% in the past six months compared with the industry’s growth of 0.9%.
In 2025, Columbia Banking System (COLB - Free Report) reported total revenues of $2.32 billion, up 19% year over year. This was driven by higher NII, increased non-interest income and contributions from the Pacific Premier Bancorp acquisition.
Going forward, COLB’s revenue growth is expected to be driven by expanding margins, rising fee income and continued balance sheet optimization.
Similarly, WaFd, Inc.’s (WAFD - Free Report) revenues witnessed a CAGR of 3.2% over the last three fiscal years (2022-2025) and improved further in first-quarter fiscal 2026 (ended Dec. 31), supported by higher NII, healthy loan demand and improved non-interest income.
Organic growth initiatives, improving loan demand and expanding fee-based income streams are expected to support revenue growth of WAFD in the upcoming period.
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Can First Horizon Sustain Its Revenue Growth After a Strong 2025?
Key Takeaways
First Horizon Corporation (FHN - Free Report) posted strong revenue growth in 2025. The company reported net revenues of $3.42 billion, up 7% on a year-over-year basis.
Solid loan expansion, rising net interest income (NII) and improving fee-based income are expected to support FHN’s revenues, going forward. The company’s focus on organic growth and disciplined balance sheet management is also expected to help sustain its top-line performance.
Key Drivers of FHN’s Revenue Growth
NII, the primary contributor to revenues, has been resilient over time. The metric witnessed a six-year CAGR of 13.8%, ending in 2025. The rally was primarily driven by lower deposit pricing and higher loan balances.
Rising loan and deposit repricing are expected to support NII growth, going forward. The company’s loans and leases saw a compound annual growth rate (CAGR) of 12.9% in the last six years (2019-2025). Deposits witnessed a CAGR of 13% over the same period. The improvement was driven by acquisitions made during the period and by the strength of a well-diversified loan portfolio.
Management expects loan growth to continue in the upcoming period, supported by strength in the commercial and industrial portfolio and steady mortgage lending activity. Additionally, deposit balances are likely to increase, driven by growth in promotional and non-interest-bearing deposits, as well as solid customer retention.
The Federal Reserve has reduced interest rates by 75 bps in 2025 and has indicated the possibility of an additional cut in 2026. As such, the company's NII is expected to improve in the upcoming period, given stabilizing funding costs.
Non-interest income also remains a key component of revenues. Over the last six years (2019-2025), non-interest income saw a CAGR of 3.4%, reflecting steady improvement in fee-based activities. In 2025, fixed income revenue and mortgage banking revenue growth supported fee income. As First Horizon continues to expand its client base and grow deposits and loans, fee income from deposit account services and lending activities is expected to increase further.
FHN’s Revenue Growth Outlook for 2026
For 2026, the company expects adjusted revenues to rise 3-7% from the $3.42 billion reported in 2025.
The Zacks Consensus Estimates for FHN’s 2026 sales is pegged at $3.6 billion, indicating a year-over-year rise of 4.5%.
Sales Estimates
FHN shares have gained 5.1% in the past six months compared with the industry’s growth of 0.9%.
Price Performance
Image Source: Zacks Investment Research
Currently, First Horizon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Other Banks’ Sustain Revenue Growth?
In 2025, Columbia Banking System (COLB - Free Report) reported total revenues of $2.32 billion, up 19% year over year. This was driven by higher NII, increased non-interest income and contributions from the Pacific Premier Bancorp acquisition.
Going forward, COLB’s revenue growth is expected to be driven by expanding margins, rising fee income and continued balance sheet optimization.
Similarly, WaFd, Inc.’s (WAFD - Free Report) revenues witnessed a CAGR of 3.2% over the last three fiscal years (2022-2025) and improved further in first-quarter fiscal 2026 (ended Dec. 31), supported by higher NII, healthy loan demand and improved non-interest income.
Organic growth initiatives, improving loan demand and expanding fee-based income streams are expected to support revenue growth of WAFD in the upcoming period.