How Cadence Bank’s (CADE) Strong Revenue Guidance Could Impact Its Long-Term Growth Outlook

• In the past week, Cadence Bank reported second quarter 2025 revenues surpassing analyst expectations by 2.0%, with earnings per share closely matching forecasts.
• A key highlight was Cadence Bank projecting average annual revenue growth of 12% over the next three years, which is anticipated to outpace the broader US banking industry.
• We'll explore how Cadence Bank's stronger revenue guidance could reshape its investment narrative and longer-term growth outlook.

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Cadence Bank Investment Narrative Recap

To be a Cadence Bank shareholder, you need confidence in its ability to translate Sunbelt market growth and strong revenue forecasts into sustainable earnings, while navigating Texas concentration and integration risks. The recent revenue beat and three-year growth outlook reinforce the near-term business catalyst, but do not materially diminish the ongoing risks from regional exposure and merger execution.

Among the latest company announcements, Cadence again declared a quarterly dividend of US$0.275 per share. This continues a pattern of reliable payouts and appeals to investors seeking income, yet it does not offset the need to watch for shifting economic conditions in Texas and their impact on deposit and loan growth. Contrary to upbeat revenue trends, investors should be aware of Cadence Bank’s significant exposure to a single geographic market that...

Read the full narrative on Cadence Bank (it's free!)

Cadence Bank's narrative projects $2.5 billion in revenue and $810.5 million in earnings by 2028. This requires 12.5% annual revenue growth and a $285.3 million earnings increase from the current earnings of $525.2 million.

Uncover how Cadence Bank's forecasts yield a $40.36 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have set fair value estimates for Cadence Bank ranging from US$40.36 to US$66.61 across two unique perspectives. With most analyst forecasts now outpaced by the company’s revenue outlook, your own view on regional risks could meaningfully shape your expectations for Cadence’s future performance.

Explore 2 other fair value estimates on Cadence Bank - why the stock might be worth just $40.36!

Build Your Own Cadence Bank Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cadence Bank research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Cadence Bank research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cadence Bank's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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