SLM (NASDAQ:SLM) Shares Gap Down on Disappointing Earnings

Key Points

• SLM shares gapped down after the company reported weaker-than-expected quarterly results, opening at $23.00 versus the prior close of $24.18.
• Q2 earnings missed estimates, with EPS of $0.29 versus the $0.46 consensus and revenue of $401.1 million below expectations, reflecting softer year-over-year performance.
• Despite the miss, SLM kept FY 2026 EPS guidance at 3.10-3.20 and declared a quarterly dividend of $0.13 per share, which may help support investor confidence.

SLM Corporation (NASDAQ:SLM - Get Free Report) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $24.18, but opened at $23.00. SLM shares last traded at $23.7240, with a volume of 676,718 shares.

The credit services provider reported $0.29 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.17). The business had revenue of $401.11 million during the quarter, compared to analysts' expectations of $409.22 million. SLM had a net margin of 26.42% and a return on equity of 34.80%. SLM's revenue was down .7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.32 earnings per share. SLM has set its FY 2026 guidance at 3.100-3.200 EPS.

SLM Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, September 4th will be issued a $0.13 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a yield of 2.2%. SLM's payout ratio is currently 14.40%.

SLM News Roundup

Here are the key news stories impacting SLM this week:

• Positive Sentiment: SLM maintained or modestly raised its FY 2026 EPS guidance to 3.10-3.20, which may help reassure investors that full-year profitability remains intact despite the quarter’s miss. Sallie Mae Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Coverage highlighting the stock’s undervalued case and the potential benefit from student loan reform could support sentiment by suggesting upside if policy or valuation expectations improve. SLM Heads Into Earnings On Student Loan Reform Narrative and Undervalued Debate
• Neutral Sentiment: The company declared a quarterly common dividend of $0.13 per share, reinforcing capital-return discipline but not likely to be a major near-term driver for the stock. Sallie Mae Declares Dividends on Preferred Stock Series B and Common Stock
• Negative Sentiment: Q2 results missed expectations, with EPS of $0.29 versus $0.46 expected and revenue of $401.1 million below estimates, signaling softer-than-expected operating performance. Sallie Mae misses Q2 CY2026 sales expectations
• Negative Sentiment: The weaker quarter also included a year-over-year decline in earnings and slightly lower revenue, which may keep pressure on shares until investors see a clearer turnaround. Sallie Mae misses Q2 earnings and revenue estimates

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on SLM shares. Wells Fargo & Company set a $28.00 price objective on shares of SLM in a research report on Friday. Compass Point raised shares of SLM from a "sell" rating to a "neutral" rating and cut their target price for the company from $23.00 to $22.00 in a research note on Monday, March 30th. Royal Bank Of Canada raised their target price on shares of SLM from $28.00 to $29.00 and gave the company an "outperform" rating in a research note on Friday, July 10th. Barclays reiterated an "equal weight" rating and issued a $26.00 price target (down from $30.00) on shares of SLM in a research note on Tuesday, July 7th. Finally, Zacks Research lowered SLM from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 26th. Five research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, SLM currently has an average rating of "Hold" and a consensus target price of $29.80.

Institutional Trading of SLM

A number of large investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC increased its position in shares of SLM by 19.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 3,081 shares of the credit services provider's stock valued at $66,000 after purchasing an additional 501 shares during the last quarter. GAMMA Investing LLC lifted its position in SLM by 9.6% in the fourth quarter. GAMMA Investing LLC now owns 7,649 shares of the credit services provider's stock worth $207,000 after buying an additional 669 shares during the last quarter. NewEdge Advisors LLC boosted its stake in SLM by 6.6% during the first quarter. NewEdge Advisors LLC now owns 21,350 shares of the credit services provider's stock worth $627,000 after buying an additional 1,319 shares during the period. Captrust Financial Advisors increased its position in SLM by 6.1% during the second quarter. Captrust Financial Advisors now owns 36,889 shares of the credit services provider's stock valued at $1,210,000 after acquiring an additional 2,109 shares during the last quarter. Finally, Triumph Capital Management purchased a new stake in shares of SLM in the third quarter valued at $69,000. 98.94% of the stock is currently owned by institutional investors.

SLM Stock Down 1.6%

The company has a debt-to-equity ratio of 2.59, a quick ratio of 1.29 and a current ratio of 1.30. The company's fifty day moving average price is $23.51 and its 200-day moving average price is $23.32. The stock has a market cap of $4.49 billion, a P/E ratio of 6.59, a price-to-earnings-growth ratio of 2.30 and a beta of 0.94.

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.