Piper Sandler Companies (NYSE:PIPR) reported second-quarter adjusted net revenue of $491 million, up 21% from a year earlier, as strong advisory activity, municipal financing and equity brokerage results supported its 11th consecutive quarter of year-over-year revenue growth.
The firm posted adjusted operating income of $107 million and an adjusted operating margin of 21.8% for the quarter. Adjusted net income was $74 million, or $1.40 per diluted share, according to CFO Kate Clune. Chairman and CEO Chad Abraham said the company’s adjusted EPS was $1.04.
Advisory Business Reaches Record Second-Quarter Revenue
Corporate investment banking revenue reached $312 million in the second quarter, a 31% increase from a year earlier. First-half corporate investment banking revenue totaled a record $636 million, up 30% year over year.
Advisory revenue rose 34% to a quarterly record of $274 million. Piper Sandler completed 83 advisory transactions, representing a 17% increase in volume, while also earning more larger fees, Abraham said. First-half advisory revenue increased 25% to $525 million.
Financial services and healthcare remained the company’s two largest advisory franchises. Piper Sandler said it ranked first in U.S. bank M&A during the first half by both announced transaction count and deal value. Abraham noted that while large-scale bank M&A remained limited, middle-market transaction volume improved.
The healthcare business also contributed strongly, led by the company’s medical technology team. Abraham said market conditions for healthcare M&A had become more constructive and that Piper Sandler remained the top med-tech M&A adviser by deal count.
The company said advisory revenue from private-equity clients grew 10% year over year despite what Abraham described as a challenging sponsor environment. Piper Sandler has transitioned two senior leaders from its Services and Industrials group to work alongside its head of financial sponsors on private-equity advisory efforts.
During the question-and-answer session, Abraham said middle-market conditions varied by sector. Financial services and healthcare have performed well, while parts of consumer and industrial markets remained more difficult. He said pitch calendars and new mandates appeared constructive for the second half, though transaction closing rates will remain important.
Corporate Financing, Municipal Business and Brokerage Results
Corporate financing revenue increased 10% from a year earlier to $38 million in the second quarter. Piper Sandler completed 28 financings and raised $13 billion for corporate clients, primarily in healthcare. First-half corporate financing revenue rose 65% to $111 million, aided by a 33% increase in book-run transactions and higher average fees.
Municipal financing revenue reached $50 million, up 18% from a year earlier and double the first-quarter level. The company underwrote 141 negotiated municipal transactions, raising $5 billion in par value. President Deb Schoneman said specialty operations, particularly special district and hospitality groups, completed several large transactions during the quarter.
First-half municipal financing revenue increased 7%, outpacing 4% growth in municipal negotiated-market par value, according to the company. Schoneman said Piper Sandler expects third-quarter municipal financing revenue to decline from the “robust” second-quarter level, consistent with its outlook last year.
Equity brokerage revenue rose 8% to a record $63 million in the second quarter. The company cited its trading execution capabilities and benchmark rebalancing events in June, which generated its three largest days by notional volume in firm history. First-half equity brokerage revenue increased 10% to $123 million, while trading volume rose 14% to 6.6 billion shares.
Fixed-income revenue was $49 million, declining both sequentially and from a year earlier amid geopolitical developments, interest-rate uncertainty and a flattening yield curve that dampened client activity. Bank restructuring activity partly offset lower trading volumes, but declined from high levels in the comparable 2025 quarter. Schoneman said Piper Sandler expects third-quarter fixed-income revenue to be similar to the second-quarter result.
Expenses, Talent and Capital Returns
Piper Sandler’s compensation ratio was 61.5% in both the second quarter and first half, improving from the prior year. Non-compensation expense was $82 million in the quarter, or 16.7% of net revenue. First-half non-compensation costs rose 8% to $168 million, primarily because of a litigation-related expense recorded in the first quarter, though they represented 17.5% of revenue, a 230-basis-point improvement from a year earlier.
Abraham said the firm’s diversified industry exposure and variable compensation model have helped it manage costs. Schoneman said the company is investing in artificial intelligence tools but is pursuing a measured rollout and monitoring utilization as the technology develops.
The company ended the quarter with 193 investment-banking managing directors, up 6% from a year ago. It added 12 managing directors through hiring and promotions since the beginning of 2026, while continuing to focus on selectively adding producers and managing departures and retirements.
Piper Sandler repurchased approximately 391,000 shares for $31 million during the quarter and paid $14 million in quarterly cash dividends. During the first half, it returned $215 million to shareholders, including $115 million of dividends and $101 million of share repurchases.
The board approved a quarterly cash dividend of $0.20 per share, payable Sept. 11 to shareholders of record as of Aug. 28. Looking ahead, Clune said the company expects third-quarter net revenue to be in line with the third quarter of 2025, while entering the remainder of the year with what management described as a healthy pipeline and active client engagement.
About Piper Sandler Companies (NYSE:PIPR)
Piper Sandler Companies (NYSE: PIPR) is an investment bank and institutional securities firm that provides a range of capital markets and advisory services to corporations, institutions, municipalities and high-net-worth individuals. The firm’s core activities include investment banking and M&A advisory, underwriting and distribution of equity and debt securities, public finance, and sector-focused advisory across industries such as healthcare, energy, financial services and technology.
In addition to traditional investment banking, Piper Sandler offers equity and fixed income research, institutional sales and trading, and market-making services.
