Piper Sandler Misses Q3 2026 on a $13.5 Million Investment Loss

Piper Sandler reported adjusted EPS of $0.87 for Q3 2026, missing expectations on both earnings and revenue. That ended a six-consecutive-quarter run of beating analyst EPS expectations, a streak that had stretched back through Q1 2025.

The break in the streak traces directly to a $13.5 million investment loss tied to noncontrolling interests in the firm's alternative asset funds, a reversal from investment income a year earlier. That swing compressed the pre-tax margin and lifted the GAAP effective tax rate.

Advisory revenues rose 18% year over year, driven by the financial services group and a record quarter from the energy, power and infrastructure team. Fixed income services also gained, reaching its best quarter since 2021 as elevated rates drove client activity.

Corporate financing revenues fell 29% year over year on fewer completed transactions, and municipal financing dropped 36% as higher interest rates weighed on issuance activity. Non-compensation expenses also climbed, reflecting a New York City office move, higher legal fees, and technology consulting.

The board responded by authorizing a new $200 million share repurchase program running through December 31, 2028, effective immediately. A quarterly cash dividend of $0.20 per share was also declared, payable December 11 to shareholders of record on November 24.