Western Alliance Bancorporation (WAL) AI Stock Analysis

Western Alliance Bancorporation serves as a bank holding company for Western Alliance Bank, providing a variety of banking solutions primarily in Arizona, California, and Nevada through Commercial, Consumer Related, and Corporate & Other segments. Its offerings include deposit products such as checking, savings, money market accounts, and certificates of deposit, along with treasury management and cash management services. Its lending solutions include commercial and industrial loans, commercial real estate financing, construction and land development loans, and residential mortgages. The company also invests in municipal loans, low-income housing tax credits, and small business investment corporations across 36 branch locations and loan production offices.

Western Alliance delivered a 5-year revenue CAGR of 31.6% from FY2020 through FY2025. Annual revenue grew 38.2% to $1.84B in FY2021 and 24.6% to $2.30B in FY2022, before declining 7.4% to $2.13B in FY2023. Revenue accelerated 135.9% to $5.02B in FY2024 and expanded 5.2% to $5.28B in FY2025, with net income rising from $787.7M in FY2024 to $969.0M in FY2025. Operating margin contracted from 60.9% in FY2021 to 22.9% in FY2025. For the latest quarter ended June 30, 2026, quarterly revenue grew 13.6% year-over-year and quarterly earnings grew 14.0%, contributing to trailing twelve month revenue of $3.49B.

As of June 30, 2026, Western Alliance held $15.88B in cash and short-term investments alongside total debt of $7.45B, resulting in net cash of $8.43B. Total assets reached $98.70B, with shareholders' equity of $7.84B, a debt-to-equity ratio of 0.95, and a current ratio of 0.20. For FY2025, operating cash flow stood at -$2.68B and free cash flow was -$2.79B. During FY2025, capital allocation included $114.3M in capital expenditures, $69.0M used for share buybacks, and $184.8M paid in dividends.

Western Alliance trades at a trailing P/E of 8.4x and a forward P/E of 6.6x, lower than the medians of 12.1x and 10.8x for its US-listed Financial Services peers. The stock's price-to-sales multiple is 2.3x compared to the peer median of 3.2x, with a price-to-book ratio of 1.1x and EV-to-revenue of 4.1x. At the last close of $74.51 on October 16, 2026, Western Alliance had a market capitalization of $8.13B. Over the past year, the stock returned 8.2% versus 16.8% for the S&P 500, while its 5-year return of -27.4% lagged the benchmark return of 83.0%.

Western Alliance pays a quarterly dividend with an annualized forward payout of $1.68 per share, yielding 2.25% with a payout ratio of 20.5%. The bank has paid dividends for 8 consecutive years and achieved a 5-year annualized dividend growth rate of 9.3%. The most recent ex-dividend date occurred on August 13, 2026.

Consensus coverage shows 7 Strong Buy, 5 Buy, and 4 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $90.56, representing 21.5% upside over the last close of $74.51. For the fiscal year ending December 31, 2026, analysts forecast EPS of $8.85 on revenue of $3.99B, followed by 13 analysts projecting FY2027 EPS of $11.05 and revenue of $4.24B. The bank has beaten EPS estimates in 2 of the last 4 quarters, and its next earnings date is October 19, 2026.

This page is an AI-written research summary of Western Alliance Bancorporation (WAL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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