Oct 30, 2026 earnings call — Record corporate investment banking and advisory strength
Generated third quarter adjusted net revenues of $456 million and adjusted EPS of $0.87.
Revenue $0.5B (est $0.5B) · EPS $0.87 (est $0.93)
Key quotes
"Market conditions were challenging as a rapid rise in interest rates resulted in deals being delayed or downsized."
"As our existing authorization nears completion, effective today, the Board approved a new authorization to repurchase up to $200 million of our outstanding common stock through the end of 2028."
Analyst Q&A 5
Sponsor M&A and interest rates
Q (James Yaro · Goldman Sachs): Analyst asked how sponsor M&A activity is changing, the effect of higher interest rates, and the outlook for that client group.
A: Management said sponsor activity is improving but only slowly, and their recent pitch calendar looks better versus a year ago. They said higher rates are not helpful on the margin but should be manageable if rates rise slowly, and they are still getting plenty of acquisition debt financing done.
"I do think it's improving pretty darn slowly." — Chad Abraham (CEO·CHAIR)
Bank consolidation and moving upmarket
Q (Devin Ryan · Citizens Bank): Analyst asked whether bank (depository) consolidation could accelerate in 2027 and how Piper thinks about doing larger deals versus middle-market growth or M&A.
A: Management said they are having a good year in depositories and remain number 1 in deals and volume, but total deal count may be a little down from 2025 and they have not seen a rush. They said corporate development is a big part of growth and they will pursue acquisitions and organic growth across deal sizes; on munis, deals that are ready can move quickly when rates move, but Q4 timing depends on rates and the election.
"In many cases, where deals are ready to go, they can move quite quickly when we do see rates move." — Debbra Schoneman (PRESIDENT)
Corporate finance outlook and fixed income strength
Q (Steven Chubak · Wolfe): Analyst asked how pronounced the year-on-year decline in corporate finance will be and what seasonal pickup to expect, and why fixed income brokerage was resilient. He also asked about midterms' impact on bank M&A.
A: Management said they expect corporate finance to be lower than last year, noting a weak October fee pool and that visibility shows slower activity versus a year ago. They said fixed income strength came from a lighter balance-sheet advisory approach, strong fund relationships, tax-loss swap activity, restructurings and hedging work; on midterms they have not seen a big direct impact and the pace more bumps up against the 2028 timeline.
"I do think we expected to be lower than last year." — Chad Abraham (CEO·CHAIR)
Equity brokerage mix and investment income swing
Q (Gabriel Angelini · BofA): Analyst asked why equity revenue was flat despite higher shares traded and whether the investment income loss of $13.5 million was a one-time item.
A: Management said the revenue pattern was mainly product mix: program trading and growth in electronic trading lower the average fee but can gain market share. They said the investment loss reflects their investment in internal private equity funds, is noisy quarter-to-quarter, tends to be muted over time, and has limited aggregate non-GAAP impact though it is noisy on GAAP.
"So, that is the impact of our investment in our internal private equity funds." — Kate Clune (CFO)
Healthcare business and hiring MDs
Q (Mike Grondahl · Northland): Analyst asked what is working or challenged in the healthcare franchise and how aggressive Piper is about adding MDs in the next 2 to 5 quarters.
A: Management said this has been one of their best years in healthcare, broad-based across MedTech M&A, biotech financings, and private equity activity. On hiring MDs, they said they paused after rapid growth to focus on productivity and fit, have identified white-space opportunities, plan to double down, and are heavily in recruiting season now.
"Yeah, I would say this has been one of the best years we've had in healthcare." — Chad Abraham (CEO·CHAIR)