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Western Alliance
(NYSE:WAL)
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Rating:63Neutral
Price Target:
$86.00
â–²(3.48% Upside)
Action:Reiterated
Date:08/01/26
The score is most influenced by fundamentals: healthy profitability and improved leverage are offset by multi-year negative operating/free cash flow and softer revenue momentum. Valuation is a key support (low P/E and a ~2% yield). The latest earnings call adds a constructive tilt via higher NII growth guidance and planned buybacks, but tempered by reduced growth/fee guidance and ongoing funding-cost and credit-trend watch items. Technicals are broadly neutral with the stock hovering around major moving averages.
Positive Factors
Net interest income growth
Sustained NII expansion with stable margins indicates the bank's core interest-earning business is strengthening. Durable NII growth supports pre-provision revenue, funds investments or higher reserves, and reduces reliance on volatile fee streams, improving earnings resilience over months.
Negative Factors
Negative operating and free cash flow
Multi-year negative operating and free cash flow raises concerns about cash generation quality and reliance on balance-sheet activity. Persistent negative cash flows can increase dependence on wholesale funding or deposit repricing, and signal potential stress on liquidity and earnings sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Net interest income growth
Sustained NII expansion with stable margins indicates the bank's core interest-earning business is strengthening. Durable NII growth supports pre-provision revenue, funds investments or higher reserves, and reduces reliance on volatile fee streams, improving earnings resilience over months.
Read all positive factors
Western Alliance Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Reports pre-tax earnings for each segment, isolating operating performance before the effects of taxes and one-time items. Lets investors see which lines drive core profitability, where expenses or credit provisions are eroding income, and which segments are most important for future earnings growth.
Reports pre-tax earnings for each segment, isolating operating performance before the effects of taxes and one-time items. Lets investors see which lines drive core profitability, where expenses or credit provisions are eroding income, and which segments are most important for future earnings growth.
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The Fly
The FlyWestern Alliance (WAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.87B
Dividend Yield2.04%
Average Volume (3M)1.11M
Price to Earnings (P/E)8.9
Beta (1Y)1.50
Revenue Growth11.90%
EPS Growth16.93%
CountryUS
Employees3,769
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)9.00
Shares Outstanding109,185,360
10 Day Avg. Volume1,149,240
30 Day Avg. Volume1,109,901
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)1.20
Price to Sales (P/S)1.73
P/FCF Ratio-3.27
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$91.64Price Target Upside10.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)9.12
Revenue Forecast (FY)$4.00B
Western Alliance Business Overview & Revenue Model
Company Description
Western Alliance Bancorporation serves as the holding entity for Western Alliance Bank, offering a broad spectrum of banking products and related financial services, with its primary operations centered in Arizona, California, and Nevada. The comp...
How the Company Makes Money
Western Alliance primarily makes money through net interest income and, secondarily, noninterest income. (1) Net interest income: The bank earns interest and fees on loans and other interest-earning assets (such as investment securities and intere...
Western Alliance Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive, execution-focused tone: the company reported solid quarter-over-quarter and year-over-year growth in key earnings metrics (NII +14% YoY, PPNR +25% YoY, loan growth led by C&I) while maintaining capital and margin stability. Management proactively implemented a deposit optimization program, is deploying excess capital into share repurchases, and expects asset-quality improvements in H2. Offsetting this optimism were headwinds in mortgage banking, a temporary bump in nonaccruals (and a coverage dip), reduced near-term guidance for fee growth, and continued relatively high deposit funding costs. Overall, management presented credible actions and reasonable outcomes to address the challenges while maintaining profitable growth.Positive Updates
Strong Loan Growth Driven by C&I
Quarterly held-for-investment (HFI) loan growth of $1.8B led by C&I (over 80% of quarterly HFI growth); average HFI loan growth included $1.1B in the quarter. Management expects full-year loan growth of $5B (revised guidance) while still remaining top-quartile among $50B–$300B peers.
Negative Updates
Revised Lower Revenue and Growth Guidance
Management reduced full-year loan growth outlook to $5B and deposit growth outlook to $6B. Noninterest income growth guidance trimmed to 13%–17% (from prior 20%–25%), reflecting mortgage and macro headwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Loan Growth Driven by C&I
Quarterly held-for-investment (HFI) loan growth of $1.8B led by C&I (over 80% of quarterly HFI growth); average HFI loan growth included $1.1B in the quarter. Management expects full-year loan growth of $5B (revised guidance) while still remaining top-quartile among $50B–$300B peers.
Read all positive updates
Company Guidance
Western Alliance updated its 2026 guidance to prioritize profitability and capital returns: loan growth is lowered to $5.0 billion and deposit growth to $6.0 billion while management plans $150 million of share repurchases in H2 (after previously previewing repurchases), NII growth is raised to 12–14% (incorporating a 25 bp September hike) with NIM expected to remain stable, total noninterest income is now guided to +13–17% (vs prior 20–25%), deposit-related funding costs guidance (interest expense) remains in the $650–700 million range, operating expenses are expected to be $1.6–1.65 billion, core net charge‑offs are forecast at 25–35 bps with NPAs declining in H2, and the effective tax rate is 19%; concurrently the bank is executing deposit optimization to reduce higher‑cost balances roughly $2–3 billion (including ~ $1.2 billion at quarter‑end and ~ $1.0 billion in early Q3) to improve funding costs (Q2 average total deposit cost ≈ $1.78 and interest‑bearing deposit cost ≈ 2.74%) and support a medium‑term HFI loan‑to‑deposit target of ~77–80%.Western Alliance Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.13B | 5.28B | 5.02B | 4.26B | 2.96B | 2.00B |
| Gross Profit | 2.90B | 3.22B | 2.95B | 2.50B | 2.42B | 1.92B |
| EBITDA | 1.33B | 1.34B | 1.11B | 1.02B | 1.39B | 1.17B |
| Net Income | 990.40M | 969.00M | 787.70M | 722.40M | 1.06B | 899.20M |
Balance Sheet | ||||||
| Total Assets | 98.70B | 92.77B | 80.93B | 70.86B | 67.73B | 55.98B |
| Cash, Cash Equivalents and Short-Term Investments | 26.56B | 13.96B | 8.53B | 12.74B | 8.13B | 6.71B |
| Total Debt | 7.45B | 6.48B | 6.63B | 8.30B | 7.38B | 2.54B |
| Total Liabilities | 90.57B | 84.83B | 74.23B | 64.78B | 62.38B | 51.02B |
| Stockholders Equity | 7.84B | 7.65B | 6.71B | 6.08B | 5.36B | 4.96B |
Cash Flow | ||||||
| Free Cash Flow | -743.80M | -2.79B | -2.83B | -442.90M | 2.10B | -2.72B |
| Operating Cash Flow | -667.20M | -2.68B | -2.74B | -328.60M | 2.25B | -2.65B |
| Investing Cash Flow | -4.41B | -9.96B | -5.97B | -2.16B | -13.13B | -14.71B |
| Financing Cash Flow | 11.64B | 12.13B | 11.23B | 3.02B | 11.41B | 15.21B |
Western Alliance Technical Analysis
Negative
83.11
Price Trends
80.89
Negative
77.74
Positive
80.58
Negative
Market Momentum
0.57
Negative
55.44
Neutral
78.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAL, the sentiment is Negative. The current price of 83.11 is above the 20-day moving average (MA) of 81.62, above the 50-day MA of 80.89, and above the 200-day MA of 80.58, indicating a bearish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 78.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAL.
Western Alliance Risk Analysis
Western Alliance disclosed 41 risk factors in its most recent earnings report. Western Alliance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Adverse developments or concerns affecting the financial services industry in general or financial institutions that are similar to us or that may be viewed as being similar to us, such as the recent bank closures and disruption in the United States banking industry, could adversely affect our financial condition and results of operations. Q3, 2023
Western Alliance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.21B | 10.97 | 10.49% | 2.26% | 33.25% | 41.46% | |
77 Outperform | $11.06B | 12.06 | 8.58% | 1.20% | 28.55% | 37.78% | |
76 Outperform | $10.77B | 12.63 | 12.33% | 1.32% | 5.67% | 17.55% | |
72 Outperform | $12.53B | 12.54 | 10.66% | 2.10% | 4.34% | 24.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $8.87B | 8.94 | 12.99% | 1.97% | 11.90% | 16.93% |
* Financial Sector Average
WAL
Western Alliance
80.49
5.67
7.58%
UMBF
UMB Financial
145.73
38.86
36.36%
WBS
Webster Financial
77.22
22.60
41.38%
WTFC
Wintrust Financial
159.54
37.38
30.60%
SSB
SouthState Corporation
105.09
14.65
16.19%
Western Alliance Corporate Events
Dividends
Western Alliance Declares Quarterly Common and Preferred Dividends
Positive
Jul 30, 2026
At its July 30, 2026 board meeting, Western Alliance Bancorporation declared a quarterly cash dividend of $0.42 per share on its common stock, payable on August 27, 2026 to shareholders of record as of August 13, 2026. The decision underscores the...
Executive/Board ChangesShareholder Meetings
Western Alliance Shareholders Back Board, Pay and Auditor
Positive
Jun 11, 2026
On June 10, 2026, Western Alliance held its Annual Meeting of Stockholders, with 90.3% of eligible shares represented, and shareholders elected all 13 director nominees to one-year terms expiring in 2027. Investors also approved, on a non-binding ...
Business Operations and StrategyFinancial Disclosures
Western Alliance Highlights Strategy and Growth at Investor Day
Positive
May 12, 2026
Western Alliance Bancorporation held an Investor Day in New York on May 12, 2026, where senior executives and board members outlined the bank’s strategic direction, diversified business mix, and financial performance to analysts and investor...
Business Operations and StrategyExecutive/Board Changes
Western Alliance Chief Banking Officer Resigns for CEO Role
Neutral
May 12, 2026
On May 8, 2026, Western Alliance Bancorporation announced that Stephen Curley, its Chief Banking Officer for National Business Lines, submitted his resignation to take a Chief Executive Officer role elsewhere in the financial services sector. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.