2025 Outlook Event Hosted by Texas Capital: Key Take-Aways

Yesterday in Austin, Managing Director Jon D’Andrea attended the 2025 Outlook hosted by Texas Capital. This event brought together leading political strategists Karl Rove and David Axelrod to discuss politics, policy and what their impact on financial markets may mean for individuals and the economic outlook for Texas. In case you missed it, here are three key takeaways from the event:

1. Renewed Optimism for the Texas Economy:

A significant boost in sentiment: Texas business leaders are expressing a marked increase in optimism about the current and future state of the Texas economy compared to the past two years.

According to the 2025 Texas Economic Outlook Report from Texas Capital, nearly 80% of business leaders surveyed were noted as holding a positive outlook for both the current and future economic conditions within the state. This surge in confidence signals a robust and promising environment for businesses operating in Texas.

2. Revenue Growth Expectations on the Rise:

Across all four major Texas metropolitan areas, a substantial majority of business leaders anticipate increased revenue in the coming year.

More than 70% of surveyed executives expect their companies to experience revenue growth. This positive revenue outlook underscores the strong underlying economic momentum and the confidence that businesses have in their ability to navigate the current economic landscape.

3. Shared Goals for a Stronger Texas Economy:

Despite varying political affiliations, there is a clear consensus among political leaders on several critical issues that will drive economic growth.

Curbing inflation, reducing healthcare costs, and addressing the rising cost of childcare emerged as key priorities. These shared goals highlight the collective understanding that a more stable and affordable environment will significantly boost economic productivity and create a more favorable landscape for businesses to thrive.

Implications for Middle-Market Companies:

These takeaways have significant implications for middle-market companies in Texas:

Capitalize on the Optimism: The renewed optimism within the Texas business community presents a favorable environment for growth and expansion. Middle-market companies should leverage this positive sentiment to pursue strategic initiatives and capitalize on emerging opportunities.

Focus on Revenue Growth: With a strong majority of businesses expecting revenue growth, middle-market companies should prioritize strategies that will ensure they have the capital available to drive top-line growth and enhance their market position.

Keep an eye on policy shifts: Change is coming quickly, and as policies shift, middle-market companies should consider the possible impacts on their customers, operations, vendors, materials/ingredients, and more.

If you’re interested in discussing how any of this may affect your middle-market company, please reach out to discuss.

Source: 2025 Texas Economic Outlook Report, Texas Capital