SLM (NASDAQ:SLM) Announces Quarterly Earnings Results

Key Points

• SLM posted a quarterly beat with $1.54 EPS versus a consensus of $1.14 and revenue of $1.30 billion, driving strong margins, a 34.8% ROE and a 26.0% net margin.
• The company raised FY2026 diluted EPS guidance to $3.10–$3.20, after executing $3.3 billion in loan sales that generated $146 million of gains and initiating a $200 million accelerated share‑repurchase while repurchasing ~12 million shares YTD (~6% of outstanding).
• Credit trends remain broadly stable (net charge‑offs ~$89 million, 30+ day delinquencies ~3.98%, reserve rate 6.05%), and management says potential federal Grad PLUS reforms could boost originations by up to 70% over several years.

SLM (NASDAQ:SLM - Get Free Report) released its quarterly earnings data on Thursday. The credit services provider reported $1.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.14 by $0.40, FiscalAI reports. The firm had revenue of $1.30 billion during the quarter, compared to analyst estimates of $486.05 million. SLM had a return on equity of 34.79% and a net margin of 26.04%.The business's revenue for the quarter was down 3.6% compared to the same quarter last year. During the same period in the prior year, the company posted $1.40 earnings per share. SLM updated its FY 2026 guidance to 3.100-3.200 EPS.

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

• Q1 diluted EPS rose to $1.54 from $1.40 and loan originations increased 5% to $2.9 billion, driven by strength in the disbursement funnel.
• Executed $3.3 billion in loan sales (including a $2 billion seasoned sale) that generated $146 million of gains and initiated a $200 million ASR while repurchasing ~12 million shares year-to-date (~6% of outstanding).
• Raised 2026 diluted EPS guidance to $3.10–$3.20, which management attributes roughly half to incremental loan-sale gains and half to the accelerated share-repurchase plan (assumes full use of the $500 million authorization).
• Credit trends were broadly stable — net charge-offs of $89 million were modestly better than expected, 30+ day delinquencies were ~3.98%, and the reserve rate was 6.05%, with management citing disciplined underwriting and improved loss-mitigation.
• Management expects federal Grad PLUS reforms could boost originations by up to 70% over several years and is preparing with product enhancements, targeted investments in graduate lending, and plans for another strategic partnership by year-end.

SLM Stock Performance

Shares of NASDAQ:SLM opened at $23.42 on Friday. The business has a fifty day moving average of $21.17 and a 200-day moving average of $25.18. The company has a debt-to-equity ratio of 2.44, a quick ratio of 1.24 and a current ratio of 1.28. SLM has a twelve month low of $17.77 and a twelve month high of $34.97. The firm has a market cap of $4.64 billion, a PE ratio of 6.75, a price-to-earnings-growth ratio of 2.70 and a beta of 1.04.

SLM Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Thursday, June 4th will be paid a $0.13 dividend. The ex-dividend date is Thursday, June 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.2%. SLM's dividend payout ratio (DPR) is 14.99%.

SLM News Roundup

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Q1 earnings and revenue beat — SLM reported $1.54 EPS and $1.30B revenue, well above consensus estimates, driven by strong margins and ROE which supports profit momentum. Sallie Mae (SLM) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Raised FY2026 EPS guidance — management lifted full‑year diluted EPS guidance to $3.10–$3.20, above street expectations, which signals confidence in forward earnings and is a key near‑term catalyst. Sallie Mae Reports First Quarter 2026 Financial Results and Raises Full-Year 2026 Diluted Earnings per Common Share Guidance
• Positive Sentiment: Dividends declared — SLM announced a $0.13 common dividend and a $1.4269 preferred Series B dividend, supporting income appeal for shareholders. Sallie Mae Declares Dividends on Preferred Stock Series B and Common Stock
• Neutral Sentiment: Investor materials and call available — management hosted an earnings call and posted the slide deck and press release for additional color; useful for assessing sustainability of results. SLM Corp — Conference Call / Press Release
• Neutral Sentiment: Pre-earnings analysis and key-metrics context — analysts and outlets provided metric-level previews and post‑earnings breakdowns to help investors evaluate drivers. Here's What Key Metrics Tell Us About Sallie Mae (SLM) Q1 Earnings
• Negative Sentiment: Revenue modestly down year-over-year — despite the beat, Q1 revenue declined ~3.6% vs. prior year, which could limit upside if the trend persists. SLM Corp — Earnings Details
• Negative Sentiment: Regulatory/market uncertainty around Grad PLUS lending — analysts flag upcoming July changes that could alter the addressable market for grad‑level education loans, adding execution risk. SLM earnings set to test Grad Plus opportunity ahead of July shakeup

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Compass Point raised shares of SLM from a "sell" rating to a "neutral" rating and lowered their target price for the stock from $23.00 to $22.00 in a report on Monday, March 30th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $40.00 price target on shares of SLM in a report on Friday, January 23rd. Morgan Stanley reduced their price target 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. Wells Fargo & Company decreased their price objective on shares of SLM from $32.00 to $29.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. Finally, Zacks Research raised shares of SLM from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $29.40.

Institutional Investors Weigh In On SLM

Hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. increased its position in SLM by 33.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider's stock valued at $16,087,000 after acquiring an additional 137,285 shares in the last quarter. Entropy Technologies LP grew its stake in shares of SLM by 616.6% during the third quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider's stock valued at $3,031,000 after purchasing an additional 94,207 shares during the last quarter. Captrust Financial Advisors grew its stake in shares of SLM by 31.3% during the fourth quarter. Captrust Financial Advisors now owns 53,673 shares of the credit services provider's stock valued at $1,452,000 after purchasing an additional 12,793 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in shares of SLM in the first quarter valued at approximately $263,000. Finally, Triumph Capital Management acquired a new stake in shares of SLM in the third quarter valued at approximately $69,000. Institutional investors own 98.94% of the company's stock.

SLM Company Profile

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.