SLM (NASDAQ:SLM) Issues FY 2026 Earnings Guidance

Key Points

• SLM issued FY2026 EPS guidance of $3.10–$3.20, well above the sell‑side consensus of about $2.78, signaling management expects stronger loan performance and margins.
• Q1 results materially beat expectations — EPS of $1.54 vs. $0.84 consensus and revenue of $1.30B vs. $486M consensus — with a 26% net margin and 34.8% ROE supporting near‑term profitability.
• The company declared a quarterly dividend of $0.13 per share (2.2% yield), but the stock faces risks from elevated leverage (debt/equity ~2.44) and trading below its 200‑day moving average amid a mixed analyst consensus (Hold, avg. target $29.40).

SLM (NASDAQ:SLM - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 3.100-3.200 for the period, compared to the consensus EPS estimate of 2.780. The company issued revenue guidance of -.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. JPMorgan Chase & Co. lowered their target price on shares of SLM from $26.00 to $22.00 and set an "underweight" rating on the stock in a research report on Thursday, April 9th. Barclays lowered their target price on shares of SLM from $35.00 to $27.00 and set an "overweight" rating on the stock in a research report on Monday, April 6th. Weiss Ratings lowered shares of SLM from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, February 20th. Morgan Stanley lowered their target price on shares of SLM from $29.00 to $26.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 16th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $40.00 target price on shares of SLM in a research report on Friday, January 23rd. Six investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, SLM has a consensus rating of "Hold" and an average target price of $29.40.

SLM Stock Performance

Shares of NASDAQ SLM traded up $0.32 during mid-day trading on Thursday, hitting $23.42. 8,368,294 shares of the company were exchanged, compared to its average volume of 3,773,552. The company has a quick ratio of 1.24, a current ratio of 1.28 and a debt-to-equity ratio of 2.44. The stock has a 50 day simple moving average of $21.20 and a 200-day simple moving average of $25.19. SLM has a 1-year low of $17.77 and a 1-year high of $34.97. The firm has a market cap of $4.64 billion, a price-to-earnings ratio of 6.75, a price-to-earnings-growth ratio of 2.67 and a beta of 1.04.

SLM (NASDAQ:SLM - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The credit services provider reported $1.54 earnings per share for the quarter, topping the consensus estimate of $0.84 by $0.70. SLM had a return on equity of 34.79% and a net margin of 26.04%.The firm had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $486.05 million. SLM has set its FY 2026 guidance at 3.100-3.200 EPS. On average, sell-side analysts forecast that SLM will post 2.79 EPS for the current fiscal year.

SLM Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Thursday, June 4th. SLM's payout ratio is presently 14.99%.

Trending Headlines about SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Q1 results materially beat expectations — EPS $1.54 vs. $0.84 consensus and revenue $1.30B vs. $486M consensus; strong net margin (26%) and ROE (34.8%) support near‑term profitability. View Press Release
• Positive Sentiment: Raised FY‑2026 EPS guidance to $3.10–$3.20 versus sell‑side consensus ~$2.78 — the higher outlook likely drove renewed investor confidence about loan book performance and margins. View Press Release
• Positive Sentiment: Company declared dividends — common $0.13/share and Preferred Series B $1.4269028 (both payable June 15) — a signal of cash return and capital allocation discipline. BusinessWire: Dividends Announced
• Neutral Sentiment: Analyst/press coverage is framing Q1 as a test of Grad PLUS opportunities ahead of a July change — helpful context but introduces timing/operational uncertainty. Investing.com: Grad Plus Coverage
• Neutral Sentiment: Pre‑earnings previews and explainers (Zacks, MSN/CNN coverage) have circulated, increasing awareness but adding little new fundamental information. Zacks: Earnings Preview MSN: Dividend Note
• Neutral Sentiment: Non‑market items (case study/industry mentions) appear in feed but are unlikely to move the stock materially. OGJ: Case Study
• Negative Sentiment: Risks remain — SLM carries elevated leverage (debt/equity ~2.44) and the stock still sits below its 200‑day moving average, which could limit upside if credit conditions or loan demand weaken.

Institutional Investors Weigh In On SLM

Several institutional investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. boosted its position in shares of SLM by 33.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider's stock worth $16,087,000 after purchasing an additional 137,285 shares in the last quarter. Entropy Technologies LP boosted its position in shares of SLM by 616.6% during the 3rd quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider's stock worth $3,031,000 after purchasing an additional 94,207 shares in the last quarter. Captrust Financial Advisors boosted its position in shares of SLM by 31.3% during the 4th quarter. Captrust Financial Advisors now owns 53,673 shares of the credit services provider's stock worth $1,452,000 after purchasing an additional 12,793 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of 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 purchasing an additional 1,319 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in shares of SLM during the 1st quarter worth $263,000. 98.94% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.