Piper Sandler reported strong Q1 results driven by a significant increase in debt capital markets advisory revenue, which delivered outsized performance compared to year-end. The firm also saw robust advisory fees in healthcare and medtech, reflecting strategic growth in those sectors.

Announced bank M&A volumes slowed on larger transactions relative to prior quarters, though Piper Sandler completed several smaller deals that maintained overall deal flow. Increased interest rate volatility boosted derivative desk conversations and actual hedging transactions, despite client hesitation around positioning.

The company captured outsized market share in Q1 equity capital markets, particularly within biotech, benefiting from larger fee assignments. Management expects this elevated market share to moderate in Q2, although the overall capital markets environment remains open.

Advisory fees are projected to decline sequentially due to choppy macro conditions and moderation in sponsor-led deals, while non-M&A revenues from debt capital markets advisory continue to be a bright spot. Private capital and restructuring advisory performed steadily, with private capital advisory gaining traction post-acquisition.