Piper Sandler (PIPR) Research Hub

Research into Americas investment banks, including PIPR, reveals a complex 1Q26 performance characterized by a divergence in M&A drivers and persistent restructuring activity. A significant trend is the split between strategic M&A, which is currently tracking 60% above historical averages, and sponsor-led activity, which remains 2% lower year-to-date. The sector faced headwinds as median earnings per share missed consensus estimates by 6%, primarily driven by elevated compensation ratios and sluggish revenue growth. This combination has effectively delayed the realization of expected operating leverage across the peer group. Despite these challenges, the research highlights structural growth in secondaries and a continued reliance on the ongoing restructuring cycle. While current valuations are considered fair at 16.5x next-twelve-months price-to-earnings, market sentiment is expected to remain tempered. Ultimately, a sustained recovery in the investment banking landscape will likely depend on a more robust resurgence in private equity sponsor activity.