WAL NYSE Russell 1000 Earnings call
Western Alliance Bancorporation (WAL) · Q2 2026 results and valuation
Share price: $75.64 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 22 Jul 2026 and 22 Apr 2026
Net income up 43.7% on the previous quarter, guidance cut. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+43.7%
Net income vs Q1 2026
Guidance cut
Net income 261.7M vs 182.1M
Revenue −32.0%
Against the same quarter last year (Q2 2025) it is +13.6% — part of the move on last quarter is seasonal.
2 · How management spoke
Upbeat
More upbeat than 65% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Western Alliance lowered its deposit growth outlook to $6 billion due to lower funding needs and efforts to remix the deposit base.
Valuation
Is Western Alliance Bancorporation undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $199.46 a share — the stock trades 62% below it. Today's price assumes −4.0% growth a year.
Current price
$75.64
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-4.0% for 10 yrs
Fair value / share
$199.46
Buy below
$149.59
Price vs fair value
Undervalued 62%
Price vs buy-below price
Undervalued 49%
Read between the lines
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Key theme
The company plans to lower deposit costs by replacing higher cost deposits with lower cost deposits as part of a remixing strategy to improve costs starting in the third quarter.
Source quote
“As those lower cost deposits come in, we're going to reduce the higher cost deposits net-net. When you think about each one, the cost is a little bit different there, but that's really the plan going forward, is a remixing. As Ken mentioned, we're going to grow deposits in the third quarter, but we do think the cost is going to continue to improve from here.”
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Guidance ↓
The company lowered its deposit growth outlook to $6 billion because of lower funding needs and efforts to remix the deposit base.
Source quote
“As a result, we are lowering our deposit growth outlook to $6 billion, reflecting lower funding needs and our continued efforts to remix the deposit base in order...”
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Guidance
Net interest income is expected to increase as double-digit average earning asset growth offsets stable NIM.
Source quote
“We expect NIM to remain stable going forward as double-digit average earning asset growth generates higher net interest income.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“As we approach the $100 billion asset milestone later this year, Western Alliance is entering its next phase from a position of strength, combining industry-leading growth, improving profitability, and increased...”
“Looking at slide nine, net interest income grew $31 million quarterly, or 16% annualized, to $797 million, primarily from C&I-driven average HFI loan growth and higher average securities, which powered...”
“Overall, we generated strong operating leverage as total revenue growth outpaced total expense growth by a three-to-one margin, excluding last year's quarter securities gains.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 45.7M | 67.2M | −32.0% | 23.5M | +94.5% |
| Operating income | 332.0M | 231.3M | +43.5% | 291.3M | +14.0% |
| Net income | 261.7M | 182.1M | +43.7% | 230.4M | +13.6% |
| EPS | 2.36 | 1.65 | +43.0% | 2.07 | +14.0% |
| P/E today 8.6 | 9.3 | 8.2 | +1.1 | 10.2 | −0.9 |
Topics
Most discussed now
- Just as important, Western Alliance Bancorporation has already begun executing several key strategic initiatives it discussed in May…
- Net interest margin remained relatively flat as the deposit remixing strategy offset nominally lower average earning asset yields.
- Non-interest income of $199 million was essentially unchanged from Q1 when excluding $50.5 million of elevated securities gains realized…
- Western Alliance Bancorporation's revised loan growth outlook will allow us to notably increase share buybacks with $150 million planned…
- At the same time, its diversified business model and specialized platforms have continued to generate strong earnings momentum as Western…
Faded since Q1 2026
- Dropped Western Alliance Bancorporation initiated legal action at the time of the announcement and are actively pursuing recovery through those…
- Dropped All the properties have been appraised and all the appraisal values held to what Western Alliance Bancorporation originally had forecasted…
- Fading Noninterest income increased 18% quarter over quarter to approximately $253 million.
- Fading Lower funding costs, driven by declines in interest-bearing deposit costs, helped offset pressure from lower loan yields, while higher…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Director or officer change · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Impairment; Regulation FD disclosure · SEC 8-K