SLM (NASDAQ:SLM) Releases FY 2026 Earnings Guidance

Key Points

• SLM cut its FY 2026 EPS guidance to $1.95–$2.05, well below the analyst consensus of $3.12 and its previous outlook of $3.10–$3.20.
• The company reported a third-quarter loss of $0.19 per share versus $0.63 in earnings a year earlier, while revenue fell 31.3% to approximately $375.5 million. Elevated credit-loss provisions and $90 million in net charge-offs weighed heavily on results.
• Analysts maintain a mixed view, with an overall “Hold” rating and an average price target of $28.78; SLM also declared a quarterly dividend of $0.13 per share, representing a 2.4% annualized yield.

SLM (NASDAQ:SLM - Get Free Report) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided EPS guidance of 1.950-2.050 for the period, compared to the consensus earnings per share estimate of 3.120.

Analysts Set New Price Targets

Several research analysts have recently weighed in on SLM shares. JPMorgan Chase & Co. cut their price target on SLM from $25.00 to $22.00 and set an "underweight" rating for the company in a research note on Monday, October 12th. Royal Bank Of Canada lowered their price target on shares of SLM from $29.00 to $28.00 and set an "outperform" rating on the stock in a research report on Friday, October 9th. Wells Fargo & Company reissued an "overweight" rating on shares of SLM in a research report on Friday. Weiss Ratings restated a "hold (c+)" rating on shares of SLM in a research note on Monday, September 14th. Finally, Barclays set a $22.00 price objective on shares of SLM in a report on Friday. Four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $28.78.

SLM Price Performance

Shares of NASDAQ SLM opened at $21.76 on Friday. The stock has a market cap of $4.09 billion, a PE ratio of 6.08, a price-to-earnings-growth ratio of 1.56 and a beta of 0.96. SLM has a fifty-two week low of $17.77 and a fifty-two week high of $31.06. The company has a debt-to-equity ratio of 2.63, a quick ratio of 1.32 and a current ratio of 1.33. The stock has a fifty day moving average of $24.63 and a 200-day moving average of $24.03.

SLM (NASDAQ:SLM - Get Free Report) last issued its quarterly earnings data on Thursday, October 22nd. The credit services provider reported ($0.19) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.17 by ($0.36). The company had revenue of $375.47 million for the quarter, compared to analysts' expectations of $453.34 million. SLM had a return on equity of 33.81% and a net margin of 26.09%. The business's revenue for the quarter was down 31.3% on a year-over-year basis. During the same period last year, the company posted $0.63 EPS. Equities research analysts anticipate that SLM will post 3.12 earnings per share for the current year.

SLM Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, December 4th will be issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, December 4th. SLM's dividend payout ratio is presently 14.53%.

Key Headlines Impacting SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Private education loan originations increased 15% year over year to $3.4 billion, while graduate-loan originations rose 119%, indicating continued demand for SLM’s lending products. Sallie Mae Reports $32.3 Million Third-Quarter Loss as Originations Rise 15%
• Positive Sentiment: Sixth Street committed to purchase $1.5 billion of student loans annually, potentially improving SLM’s funding and loan-distribution capacity. The company also repurchased 5.1 million shares for $132.2 million and declared a quarterly dividend payable December 15. SLM: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Loans in repayment that were delinquent stood at 4.2% as of September 30. That level highlights credit-quality risks but also gives investors an important metric to monitor as SLM manages its portfolio. Sallie Mae Reports Third Quarter 2026 Financial Results
• Negative Sentiment: SLM reported a third-quarter net loss of $32.3 million, or $0.19 per share, compared with earnings of $0.63 per share a year earlier. Revenue of approximately $375.5 million missed expectations near $453.3 million and declined 31.3% year over year. SLM Third Quarter 2026 Earnings Release
• Negative Sentiment: Higher credit costs drove the loss: provisions for credit losses reached $213.7 million and net charge-offs totaled $90 million. Management cut 2026 diluted EPS guidance to $1.95–$2.05 from $3.10–$3.20, a major negative revision for earnings expectations. Sallie Mae Cuts Full-Year View After Logging Higher Charge-Offs

About SLM

SLM Corp., commonly known as Sallie Mae, is a financial services company focused on helping students and families finance higher education. Its primary business is the origination and servicing of private education loans, which can help cover tuition, fees, books, housing and other eligible education-related expenses not fully covered by federal student aid.

The company offers private student loans for undergraduate and graduate education, as well as loans for career-training programs and other education needs.

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