Piper Sandler Companies (PIPR) Q1 2026 earnings summary

Executive summary

• Net revenues for Q1 2026 reached $474.4 million, up 33% year-over-year, with adjusted net revenues of $470 million and a 20% operating margin.

• Adjusted EPS was $1.00, with net income of $65.2 million and operating income of $94 million.

• Corporate investment banking and healthcare franchises delivered record revenues, with healthcare leading advisory and financing activity.

• Advisory revenues reached a first quarter record of $251 million, up 16% year-over-year, while corporate financing revenues more than doubled to $73.3 million.

• A four-for-one stock split was completed in March 2026, and the quarterly dividend was increased by 14% to $0.20 per share.

Financial highlights

• Net revenues increased 33% year-over-year to $474.4 million, but declined sequentially from Q4 2025.

• Operating income grew 37% year-over-year, and pre-tax margin improved to 18.5% from 8.2% a year ago.

• Compensation ratio improved to 61.6% (adjusted), down 90 basis points year-over-year.

• Non-compensation expenses were $90.4 million, up 13.9% year-over-year, including $8.5 million in litigation-related expenses.

• $171 million was returned to shareholders via $101 million in dividends and $70 million in share repurchases.

Outlook and guidance

• Advisory pipelines remain strong, with Q2 advisory revenues expected to be similar to Q1, but corporate financing and equity brokerage revenues are anticipated to decline.

• Fixed income outlook remains challenging due to ongoing volatility and client caution.

• Public finance revenues expected to improve modestly in Q2.

• Compensation ratio expected to remain at the low end of the guided range for the rest of the year.

• Management notes ongoing market uncertainty and volatility in transaction volumes.