Piper Sandler Reverses Second-Quarter Revenue Growth

The Tip Desk · October 30, 2026 · 3 min read

Third-quarter net revenues were $443 million, down 8% from a year earlier, and GAAP earnings fell to $0.78 a share.

Piper Sandler Companies (PIPR), a leading investment bank, reported third-quarter 2026 net revenues of $443 million, down 11% from the second quarter and 8% from a year earlier, reversing the 25% year-over-year growth recorded in the prior quarter.

Net income attributable to the company was $55.4 million, or $0.78 a share, down 18% sequentially and 8% year over year. Adjusted net revenues were $456 million, down 7% from the second quarter and essentially unchanged from the year-ago quarter. Adjusted net income was $61.7 million, or $0.87 a share.

Chairman and chief executive officer Chad Abraham said the quarter was supported by 18% year-over-year growth in advisory services revenues and increased client activity in fixed income.

Advisory services generated $250.3 million, down 9% sequentially on a lower average fee but up 18% year over year on a higher average fee, after 34% year-over-year growth in the second quarter. The company said performance was led by the financial services group and the energy, power & infrastructure team, which generated a record quarter, with a contribution from healthcare. Corporate investment banking produced record third-quarter revenues of $307 million.

Corporate financing revenues were $56.6 million, up 50% sequentially as higher revenue per deal more than offset a decline in completed financings, but down 29% year over year. Municipal financing fell to $24.8 million, down 50% sequentially and 36% year over year, as higher interest rates reduced issuance activity.

Institutional brokerage revenues were $114.3 million. Equity brokerage was $54.5 million, down 13% sequentially on lower client activity after a $63 million second quarter. Fixed income services were $59.8 million, up 23% sequentially and 5% year over year, the best quarter since 2021, as elevated rates drove client activity.

Investment income swung to a $13.5 million loss from $14.1 million of income in the second quarter and $30.6 million a year earlier, including amounts attributable to noncontrolling interests in alternative asset funds. Pre-tax margin compressed to 15.0% from 20.3% sequentially and 22.4% a year earlier. Adjusted operating margin was 19.8%.

Non-interest expenses were $376.4 million. Non-compensation expenses rose to $89.8 million, up 4% sequentially and 8% year over year, on New York City office-move occupancy and equipment costs, higher legal fees, and technology consulting. The compensation ratio was 64.7%. The effective tax rate was 39.7%, elevated by the net loss attributable to noncontrolling interests.

For the first nine months of 2026, net revenues and adjusted net revenues were a record, totaling $1.4 billion, up 15% and 14% from last year, driven by 21% growth in corporate investment banking revenues.

The board declared a quarterly cash dividend of $0.20 a share, payable December 11, 2026. It also authorized the repurchase of up to $200 million of common stock, effective immediately and expiring December 31, 2028, with $20.3 million remaining on the existing authorization that expires December 31, 2026. In the third quarter the firm repurchased 0.5 million shares at an average price of $74.53 a share. In the first nine months it returned an aggregate of $268 million through dividends and repurchases of 1.8 million shares at an average price of $77.80 a share.

In September 2026 the firm launched equities trading in Europe through Piper Sandler Europe.