third quarter of 2026
Filed Oct 30, 2026Piper Sandler Companies Reports Third Quarter 2026 Results; Declares Quarterly Dividend of $0.20 Per Share; Announces New Share Repurchase Authorization
Third-quarter advisory and fixed income activity grew year over year, but GAAP net revenues, earnings, pre-tax margin and diluted EPS declined from both the second quarter of 2026 and the third quarter of 2025, with investment losses, higher non-compensation expenses and a higher effective tax rate weighing on results.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $443.7M | -11 % | -8 % |
| Q3 2026 net revenuesGAAP | $443.0M | -11 % | -8 % |
| Q3 2026 adjusted total revenuesnon-GAAP | $456.6M | -7 % | — % |
| Q3 2026 adjusted net revenuesnon-GAAP | $456.0M | -7 % | — % |
| Q3 2026 compensation and benefitsGAAP | $286.6M | -7 % | -1 % |
| Q3 2026 non-compensation expensesGAAP | $89.78M | 4 % | 8 % |
| Q3 2026 total non-interest expensesGAAP | $376.4M | -5 % | 1 % |
| Q3 2026 adjusted total operating expensesnon-GAAP | $365.7M | -5 % | 2 % |
| Q3 2026 income before income tax expenseGAAP | $66.63M | -34 % | -38 % |
| Q3 2026 pre-tax marginGAAP | 15.0% | -5.3pp | -7.4pp |
| Q3 2026 adjusted operating incomenon-GAAP | $90.31M | -16 % | -6 % |
| Q3 2026 adjusted operating marginnon-GAAP | 19.8% | -2.0pp | -1.4pp |
| Q3 2026 income tax expenseGAAP | $26.48M | -13 % | 6 % |
| Q3 2026 effective tax rateGAAP | 39.7% | – | – |
| Q3 2026 adjusted effective tax ratenon-GAAP | 31.7% | – | – |
| Q3 2026 net incomeGAAP | $40.16M | -43 % | -51 % |
| Q3 2026 net income attributable to Piper Sandler CompaniesGAAP | $55.41M | -18 % | -8 % |
| Q3 2026 adjusted net incomenon-GAAP | $61.68M | -17 % | -10 % |
| Q3 2026 earnings per diluted common shareGAAP | $ 0.78 | -18 % | -8 % |
| Q3 2026 adjusted earnings per diluted common sharenon-GAAP | $ 0.87 | -16 % | -9 % |
| Q3 2026 compensation ratioGAAP | 64.7% | – | – |
| Q3 2026 adjusted compensation rationon-GAAP | 61.5% | – | – |
| Q3 2026 non-compensation ratioGAAP | 20.3% | – | – |
| Q3 2026 adjusted non-compensation rationon-GAAP | 18.7% | – | – |
| First nine months of 2026 net revenuesGAAP | $1.41B | – | 15 % |
| First nine months of 2026 adjusted net revenuesnon-GAAP | $1.42B | – | 14 % |
| First nine months of 2026 net income attributable to Piper Sandler CompaniesGAAP | $188.5M | – | 13 % |
| First nine months of 2026 adjusted net incomenon-GAAP | $208.1M | – | 7 % |
| First nine months of 2026 earnings per diluted common shareGAAP | $ 2.65 | – | 13 % |
| First nine months of 2026 adjusted earnings per diluted common sharenon-GAAP | $ 2.91 | – | 7 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 Advisory servicesHigher average fee year over year; the financial services group, energy, power & infrastructure team and healthcare franchise led performance. | $250.3M | -9 % | 18 % |
| Q3 2026 Corporate financingHigher revenue per deal more than offset a decline in completed financings sequentially; year-over-year decline was driven primarily by fewer completed transactions. | $56.63M | 50 % | -29 % |
| Q3 2026 Municipal financingHigher interest rates negatively impacted issuance activity. | $24.79M | -50 % | -36 % |
| Q3 2026 Total investment bankingAdvisory services growth offset lower corporate and municipal financing activity year over year. | $331.7M | -8 % | 1 % |
| Q3 2026 Equity brokerageLower client activity versus the strong second quarter of 2026. | $54.50M | -13 % | 1 % |
| Q3 2026 Fixed income servicesThe elevated interest rate environment drove increased client activity. | $59.78M | 23 % | 5 % |
| Q3 2026 Total institutional brokerageFixed income services growth offset lower equity brokerage activity sequentially. | $114.3M | 2 % | 3 % |
| Q3 2026 Interest incomeNo driver provided. | $ 11,241 | 23 % | 20 % |
| Q3 2026 Investment income/(loss)Includes amounts attributable to noncontrolling interests primarily related to the alternative asset funds the company manages. | −13.54M | N/M | N/M |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Declared a quarterly cash dividend of $0.20 per share on October 30, 2026, payable on December 11, 2026 to shareholders of record as of November 24, 2026.
- Paid a quarterly cash dividend of $0.20 per share during the third quarter of 2026, for an aggregate of $13.6 million.
- Paid quarterly cash dividends of $0.575 per share and a special cash dividend of $1.25 per share during the first nine months of 2026.
- Total dividends paid year-to-date, including accrued forfeitable dividends paid on restricted stock awards that vested, were $128.2 million.
- Authorized repurchases of up to $200 million of outstanding common stock, effective immediately and expiring on December 31, 2028.
- Repurchased 0.5 million shares during the third quarter of 2026 for $39.4 million at an average price of $74.59 per share.
- Returned an aggregate of $268 million to shareholders during the first nine months of 2026 through dividends paid and repurchases of 1.8 million shares at an average price of $77.80 per share.
What drove it
- Advisory services generated $ 250,258 of revenue, with higher average fees supporting 18% year-over-year growth.
- Fixed income services generated $ 59,778 of revenue, the best quarter since 2021 according to the release, as elevated interest rates increased client activity.
- Corporate financing revenue increased 50% sequentially as higher revenue per deal more than offset fewer completed financings.
- The company launched equities trading in Europe through Piper Sandler Europe in September 2026.
- A London-based debt advisory team was established within energy, power & infrastructure investment banking, and a managing director was added to private capital advisory.
Concerns
- GAAP net revenues declined 11% sequentially and 8% year over year to $ 443,047.
- GAAP investment income/(loss) was a loss of $ 13,545, compared with income of $ 14,091 in the second quarter of 2026 and income of $ 30,642 in the third quarter of 2025.
- Pre-tax margin declined to 15.0% from 20.3% in the second quarter of 2026 and 22.4% in the third quarter of 2025.
- Non-compensation expenses increased 4% sequentially and 8% year over year, driven by New York City office move costs, higher legal fees and technology consulting fees.
- The effective tax rate rose to 39.7%, elevated due to the net loss attributable to noncontrolling interests.
- Municipal financing revenue declined 50% sequentially and 36% year over year as higher interest rates negatively impacted issuance activity.
What to watch
- Advisory services average fees and the conversion of the company’s corporate advisory, corporate financing and private capital advisory activity.
- Whether fixed income client activity remains supported by the elevated interest rate environment.
- Municipal issuance activity amid interest-rate conditions.
- Investment income/(loss), including amounts attributable to noncontrolling interests in alternative asset funds.
- The level of occupancy, equipment, legal and technology consulting expenses.
- Execution of the $200 million share repurchase authorization, which expires on December 31, 2028.
Balance sheet and cash flow
- Common shareholders’ equity was $ 1,382.6 million as of Sept. 30, 2026, compared with $ 1,372.7 million as of June 30, 2026 and $ 1,282.8 million as of Sept. 30, 2025.
- Common shares outstanding were 67.1 million and restricted shares outstanding were 3.5 million as of Sept. 30, 2026.
- Cash, debt, operating cash flow and free cash flow were not reported.
Analysis
Piper Sandler reported a mixed third quarter. GAAP net revenues were $ 443,047, down 11 % from the second quarter of 2026 and 8 % from the third quarter of 2025. Adjusted net revenues were $ 456,036, down 7 % sequentially and reported as — % year over year. The first nine months remained a record period, with GAAP net revenues of $ 1,412,971, up 15 %, and adjusted net revenues of $ 1,416,716, up 14 %.
The revenue mix showed a sharp divergence across businesses. Advisory services revenue increased 18 % year over year to $ 250,258 on a higher average fee, while fixed income services revenue rose 5 % year over year and 23 % sequentially to $ 59,778 as elevated interest rates drove client activity. Corporate financing increased 50 % sequentially but fell 29 % from the strong third quarter of 2025, while municipal financing fell 50 % sequentially and 36 % year over year. Equity brokerage was down 13 % sequentially amid lower client activity but increased 1 % year over year.
Margins and earnings weakened materially. GAAP pre-tax margin was 15.0%, compared with 20.3% in the second quarter of 2026 and 22.4% in the third quarter of 2025. The company cited investment losses, including amounts attributable to noncontrolling interests in alternative asset funds, and higher non-compensation expenses. The GAAP effective tax rate rose to 39.7%, and GAAP diluted EPS was $ 0.78, down 18 % sequentially and 8 % year over year. Adjusted diluted EPS was $ 0.87, down 16 % sequentially and 9 % year over year.
Expenses showed limited operating leverage on the lower revenue base. GAAP compensation and benefits declined 7 % sequentially and 1 % year over year, but the compensation ratio increased to 64.7% from 62.3% sequentially and 60.3% year over year. Non-compensation expenses increased 4 % sequentially and 8 % year over year, reflecting New York City office move costs, higher legal fees and technology consulting fees. Adjusted operating margin declined to 19.8% from 21.8% in the second quarter and 21.2% in the prior-year quarter.
Capital returns remained substantial. The company paid $13.6 million of quarterly dividends during the third quarter, repurchased $39.4 million of shares, and authorized a further $200 million repurchase program through December 31, 2028. Through the first nine months, it returned $268 million through dividends and repurchases. The release did not provide formal financial guidance, so the key reported markers for the next period are advisory fee levels, fixed income activity, municipal issuance, investment results related to alternative asset funds, and elevated non-compensation expenses.
Management, verbatim
We delivered solid results for the third quarter, supported by 18% year-over-year growth in advisory services revenues and increased client activity in fixed income.
Chad Abraham, chairman and chief executive officer
As we build on our record year-to-date revenues, we remain focused on supporting our clients across dynamic markets, finishing the year strong and continuing to return capital to our shareholders.
Chad Abraham, chairman and chief executive officer
Not in the filing
stated, not guessed- Formal forward financial guidance was not reported.
- Previous-release outlook was not provided.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash balance was not reported.
- Debt balance was not reported.
- Q3 2026 total investment banking revenue driver beyond the component-business discussion was not separately reported.
- Q3 2026 gross margin comparisons were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.