Piper Sandler Surpasses Expectations in Q3 2026 with Strong Adjusted Net Revenues and Record-Breaking Advisory Performance
Piper Sandler Companies has announced its third-quarter 2026 financial results, which exceeded market expectations. Chairman and CEO Chad Abraham highlighted the company's strong performance against a backdrop of increasingly selective market conditions.
In an earnings conference call on October 30th, Chad Abraham stated that M&A faced headwinds due to declining overall activity and sponsor activity year-over-year. However, the company's equity issuance remained open for attractive opportunities, with investors being more selective, leading to a decline in the fee pool sequentially.
Despite these challenges, Piper Sandler generated third-quarter adjusted net revenues of $456 million, achieving a 19.8% operating margin and adjusted earnings per share (EPS) of $0.87. Corporate investment banking accounted for 67% of adjusted net revenues, or $307 million, the company's strongest third quarter on record.
The advisory business also showed significant growth, with revenues reaching $250 million, an 18% increase over last year. Piper Sandler completed 81 advisory transactions and saw average fees rise across its Financial Strategies Group, energy, power, and infrastructure team, as well as the healthcare franchise.
Within financial services, depositories led the performance, advising on six of the 10 largest bank M&A deals announced during the third quarter. Piper Sandler remained at the top of year-to-date league tables for both deal count and deal value, underscoring the strength of this franchise.
The company's diversified energy group achieved record quarterly revenues, driven by increased demand for energy to power growth in AI data centers. This sector recorded 19 transactions, more than double the year-ago quarter, with energy and power services and equipment leading. Piper Sandler ranked as the top advisor in this sector based on completed M&A deals.
Piper Sandler's private equity clients saw advisory revenues grow 17% year-over-year, outperforming the broader U.S. private equity market, where both deal value and deal counts declined. The company continues to experience positive momentum within its private capital advisory group, which has already exceeded full year 2025 revenues through the first nine months of this year.
Looking ahead to the fourth quarter, Piper Sandler's advisory pipeline remains healthy, positioning the company for what is expected to be its strongest quarter of the year. However, it will likely fall short of last year's record-breaking performance in the fourth quarter.
