Piper Sandler Companies (NYSE:PIPR) Releases Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• Piper Sandler missed quarterly expectations: It reported $0.87 in earnings per share versus the $0.93 consensus estimate, while revenue of $456.04 million also fell short of forecasts and declined 4.9% year over year.
• Advisory businesses performed strongly: Third-quarter advisory revenue reached a record $250 million, up 18% year over year, while corporate investment banking revenue hit a quarterly record of $307 million.
• Higher rates pressured public finance: Municipal financing revenue dropped 36% year over year and 50% sequentially. The company returned $268 million to shareholders in the first nine months and authorized a new $200 million share-repurchase program.

Piper Sandler Companies (NYSE:PIPR - Get Free Report) announced its quarterly earnings data on Friday. The company reported $0.87 earnings per share for the quarter, missing the consensus estimate of $0.93 by ($0.06), FiscalAI reports. The firm had revenue of $456.04 million for the quarter, compared to the consensus estimate of $467.39 million. Piper Sandler Companies had a net margin of 14.51% and a return on equity of 21.92%. Piper Sandler Companies's revenue for the quarter was down 4.9% on a year-over-year basis. During the same period last year, the company posted $3.82 earnings per share.

Here are the key takeaways from Piper Sandler Companies' conference call:

• Piper Sandler reported record third-quarter advisory revenue of $250 million, up 18% year over year, supported by financial services, energy, power and infrastructure, and healthcare. Corporate investment banking revenue reached a quarterly record of $307 million.
• Private equity advisory revenue grew 17% year over year despite declines in broader sponsor-market activity, while the private capital advisory group posted its best quarter and has already surpassed its full-year 2025 revenue.
• Management expects fourth-quarter advisory revenue to be the strongest of 2026, but still below the prior-year record. Corporate financing is expected to remain below last year as investors become more selective, while fixed-income revenue is projected to be consistent with the third quarter.
• Higher interest rates significantly pressured public finance, with municipal financing revenue down 36% year over year and 50% sequentially as transactions were delayed or downsized. Management expects only a modest fourth-quarter improvement while issuers adjust to the rate environment.
• The company returned $268 million to shareholders during the first nine months and approved a new $200 million share-repurchase authorization through 2028, along with a quarterly dividend of $0.20 per share.

Piper Sandler Companies Price Performance

Shares of PIPR traded down $5.21 during midday trading on Friday, hitting $63.51. 1,575,127 shares of the company traded hands, compared to its average volume of 682,650. Piper Sandler Companies has a one year low of $61.35 and a one year high of $95.07. The firm has a market cap of $4.49 billion, a P/E ratio of 14.72, a PEG ratio of 2.02 and a beta of 1.43. The stock has a 50-day moving average of $70.04 and a 200-day moving average of $77.30.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on PIPR shares. Weiss Ratings reiterated a "hold (c+)" rating on shares of Piper Sandler Companies in a research note on Monday, August 17th. The Goldman Sachs Group set a $80.00 price target on shares of Piper Sandler Companies and gave the company a "buy" rating in a research report on Thursday, October 1st. Finally, Zacks Research lowered shares of Piper Sandler Companies from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 13th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $90.81.

About Piper Sandler Companies

Piper Sandler Companies NYSE: PIPR is an investment banking and institutional securities firm that provides financial services to corporations, financial institutions, public-sector entities, institutional investors and private equity firms. The company offers advisory and capital-raising services, including mergers and acquisitions, equity and debt offerings, restructuring and other strategic transactions.

Its institutional securities activities include equity research, sales and trading, fixed-income services and market-making.

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