PIPR · Piper Sandler Companies

Piper Sandler Companies delivered record first quarter 2026 net revenues of $474.4 million, up 33% from the prior year, primarily powered by a 26% increase in investment banking revenues to $348.2 million. Advisory services drove $251.0 million, up 16% year-over-year, fueled by higher completed M&A and restructuring transactions (69 vs. 42) and capital advisory deals (25 vs. 13), with standout performance from healthcare, financial services, services & industrials, and energy teams. Corporate financing surged 122% to $73.3 million, more than doubling year-ago levels, led by the healthcare franchise as No. 2 book-run underwriter for biopharma equity financings, completing 26 equity transactions priced. Institutional brokerage rose 9% to $110.8 million, with equity brokerage at a record $60.5 million for Q1 amid volatility-driven client activity. Municipal financing dipped 9% to $23.9 million due to lower specialty sector issuance. Pre-tax income of $87.9 million yielded an 18.5% margin, up from 8.2% last year, though down from Q4 2025's 28.3%, reflecting seasonally lower activity. GAAP net income attributable to the Company was $65.2 million or $0.92 per diluted share, essentially flat year-over-year, including $8.5 million litigation expenses reducing EPS by $0.08 and $7.0 million tax benefits from restricted stock vesting adding $0.10. Adjusted EPS was $1.00. Management highlighted strong client engagement leveraging sector expertise amid uncertainty. Capital returns strengthened with a 14% dividend hike to $0.20 per share and $171 million returned via dividends and 0.9 million shares repurchased at $79.08 average, post a four-for-one stock split effective March 24, 2026. Talent investments included six MD promotions and key hires in healthcare and energy.