Piper Sandler beats Q4 revenue estimates, declares dividend

Overview

• Investment bank's Q4 revenue grew 39%, beating analyst expectations

• Net income for Q4 rose 65% yr/yr, driven by strong advisory services

• Company declared $5 special dividend and announced 4-for-1 stock split

Outlook

• Piper Sandler did not provide specific financial guidance for 2026

Result Drivers

• ADVISORY SERVICES - Record Q4 advisory services revenues led by financial services and services & industrials teams

• CORPORATE INVESTMENT BANKING - Corporate investment banking revenues increased 28% over 2024, driven by record advisory services revenues

• INSTITUTIONAL BROKERAGE - Record equity brokerage revenues and strong municipal financing activity contributed to Q4 results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy."

• Wall Street's median 12-month price target for Piper Sandler Companies is $396.00, about 19.4% above its February 5 closing price of $331.63

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

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