Piper Sandler Companies Q2 Earnings Call Highlights

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. For the first half of 2026, Piper Sandler generated $961 million in adjusted net revenue, up 22% from the prior-year period. Operating income rose 42% to $201 million, producing a 20.9% operating margin. Net income totaled $146 million, or $2.04 per diluted share. 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 revenue increased 10% from a year earlier to $38 m.