SLM (NASDAQ:SLM) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

SLM (NASDAQ:SLM) posted its quarterly earnings data on Thursday. The credit services provider reported $1.12 EPS for the quarter, beating the consensus estimate of $0.95 by $0.17, FiscalAI reports. The business had revenue of $656.82 million during the quarter, compared to analyst estimates of $383.43 million. SLM had a net margin of 21.76% and a return on equity of 30.13%. During the same quarter last year, the firm posted $0.50 earnings per share. SLM updated its FY 2026 guidance to 2.700-2.800 EPS.

Here are the key takeaways from SLM’s conference call:

• PLUS reform could be a major growth driver: management estimates the reform could add about $5 billion of annual originations (~70% growth over 2025) and guides 2026 originations up 12–14%, with expected EPS acceleration beginning in 2027 (high-teens to low-20s growth if TAM materializes).
• Launched an inaugural private credit strategic partnership (no clawbacks, supplemental fee tied to return thresholds) and will warehouse and sell newly originated loans (management cited ~30% of originations), a move they say improves capital efficiency and creates more predictable, recurring earnings.
• Management plans to invest aggressively in 2026—guiding non-interest expenses of $750–$780M (vs $659M in 2025)—and expects 2026 diluted EPS of $2.70–$2.80, implying a short-term earnings headwind versus 2025 EPS of $3.46.
• Credit and reserves are presented as stable: FY2025 net charge-offs were $346M (2.15% of loans in repayment), reserve rate ~6%, 30+ day delinquency ~4%, and 2026 net charge-off guidance is $345–$385M; management notes that changes to loan-sale strategy affect reported (non-GAAP) metrics.

SLM Price Performance

SLM stock opened at $26.70 on Friday. The stock has a market cap of $5.42 billion, a price-to-earnings ratio of 9.37, a PEG ratio of 1.18 and a beta of 1.12. SLM has a fifty-two week low of $23.81 and a fifty-two week high of $34.97. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 3.27. The business has a 50 day moving average price of $27.71 and a 200 day moving average price of $28.98.

SLM Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Thursday, March 5th will be paid a dividend of $0.13 per share. The ex-dividend date is Thursday, March 5th. This represents a $0.52 annualized dividend and a yield of 1.9%. SLM’s payout ratio is presently 18.25%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. NewEdge Advisors LLC raised its stake in SLM by 6.6% during the 1st quarter. NewEdge Advisors LLC now owns 21,350 shares of the credit services provider’s stock worth $627,000 after acquiring an additional 1,319 shares in the last quarter. Captrust Financial Advisors increased its position in shares of SLM by 6.1% during the second quarter. Captrust Financial Advisors now owns 36,889 shares of the credit services provider’s stock worth $1,210,000 after purchasing an additional 2,109 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of SLM by 118.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,995 shares of the credit services provider’s stock valued at $131,000 after purchasing an additional 2,164 shares during the last quarter. Triumph Capital Management acquired a new stake in shares of SLM in the 3rd quarter valued at about $69,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in SLM during the 1st quarter worth approximately $263,000. Institutional investors and hedge funds own 98.94% of the company’s stock.

SLM News Summary

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Q4 results materially beat expectations — SLM reported $1.12 EPS vs. the $0.95 consensus and revenue of $656.8M (well above estimates), with a 21.8% net margin and 30.1% ROE. The beat underscores strong operating leverage and loan origination performance. Q4 Results Press Release
• Positive Sentiment: Shareholder returns and growth targets — Management outlined 12%–14% origination growth for 2026 and launched a new $500M share repurchase program, which should support EPS going forward and signal confidence in cash flow execution. Share Repurchase / Origination Growth
• Positive Sentiment: Dividend declared — SLM declared a quarterly dividend of $0.13/share (ann. yield ~2.0%), adding to total shareholder return and appealing to income‑sensitive investors.
• Neutral Sentiment: FY2026 EPS guidance is 2.70–2.80 — management provided a full‑year EPS range that is slightly below consensus (~2.84). Guidance reduces upside expectations versus Street models but still implies solid profitability if origination growth and margins hold.
• Negative Sentiment: Multiple securities‑class action filings and law‑firm notices — Several firms (Pomerantz, Berger Montague, Levi & Korsinsky, Rosen, Faruqi, Gross, Robbins, etc.) have announced lawsuits or deadline alerts tied to a July 25–Aug 14, 2025 class period; this increases legal risk and could pressure the share price until litigation outcomes become clearer. Class Action Filing

Analyst Ratings Changes

SLM has been the topic of several analyst reports. Keefe, Bruyette & Woods reduced their price objective on SLM from $31.00 to $29.00 and set a “market perform” rating on the stock in a research note on Wednesday, December 10th. Compass Point lowered SLM from a “buy” rating to a “sell” rating and reduced their price target for the company from $35.00 to $23.00 in a research report on Tuesday, December 9th. Morgan Stanley set a $30.00 price objective on SLM in a research note on Tuesday, December 16th. Royal Bank Of Canada boosted their price objective on SLM from $31.00 to $32.00 and gave the stock an “outperform” rating in a research report on Friday, October 24th. Finally, Weiss Ratings raised shares of SLM from a “hold (c)” rating to a “buy (b-)” rating in a report on Saturday, October 25th. Six research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, SLM has a consensus rating of “Hold” and a consensus price target of $31.40.

About SLM

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.