SLM (NASDAQ:SLM) Releases Quarterly Earnings Results, Beats Estimates By $0.17 EPS

SLM (NASDAQ:SLM) released its earnings results on Thursday. The credit services provider reported $1.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.17, FiscalAI reports. The company had revenue of $656.82 million during the quarter, compared to analyst estimates of $383.43 million. SLM had a return on equity of 30.13% and a net margin of 21.76%.During the same quarter in the previous year, the company posted $0.50 EPS. 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 Stock Up 1.0%

Shares of NASDAQ:SLM opened at $26.70 on Friday. SLM has a 52-week low of $23.81 and a 52-week high of $34.97. The firm has a market capitalization of $5.42 billion, a P/E ratio of 9.37, a P/E/G ratio of 1.18 and a beta of 1.12. The stock has a 50 day moving average price of $27.71 and a 200-day moving average price of $28.98. The company has a debt-to-equity ratio of 3.27, a quick ratio of 1.37 and a current ratio of 1.37.

SLM Announces Dividend

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

Institutional Investors Weigh In On SLM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SLM. Entropy Technologies LP boosted its stake in SLM by 616.6% in 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. Triumph Capital Management bought a new stake in SLM during the 3rd quarter valued at about $69,000. EverSource Wealth Advisors LLC raised its holdings in SLM by 118.2% in the second quarter. EverSource Wealth Advisors LLC now owns 3,995 shares of the credit services provider’s stock worth $131,000 after buying an additional 2,164 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in SLM in the first quarter worth about $263,000. Finally, NewEdge Advisors LLC lifted its stake in shares of SLM by 6.6% in 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 in the last quarter. 98.94% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Quarterly results beat expectations: SLM reported Q4 EPS of $1.12 (vs. consensus ~ $0.98–$0.95) and revenue of $656.8M, with strong margins and ROE (net margin ~21.8%, ROE ~30.1%). This outperformance is the primary bullish catalyst supporting the share move. MarketBeat: SLM Q4 results and materials
• Positive Sentiment: Dividend maintained: SLM declared a quarterly dividend of $0.13 (annualized yield ~2.0%), which supports income investor interest and reduces downside from an income‑return perspective.
• Neutral Sentiment: Company released detailed materials and hosted a conference call/slide deck alongside results, providing transparency on performance and strategy — useful for modeling forward earnings. BusinessWire: Q4 and full-year 2025 financial results
• Negative Sentiment: FY‑2026 EPS guidance was set at $2.70–2.80, slightly below the Street consensus (~$2.84), which tempers the upside from the quarterly beat and is a near‑term headwind for estimates and valuation. BusinessWire: Q4 results & guidance
• Negative Sentiment: Large wave of class‑action notices and law‑firm filings/alerts (multiple firms) alleging securities claims for the July 25–Aug 14, 2025 period. Multiple firms are soliciting lead‑plaintiff candidates with a Feb. 17, 2026 deadline — this creates legal and disclosure risk (potential costs, distraction) and is a meaningful overhang on the stock. Pomerantz: Class action filing

Analyst Upgrades and Downgrades

Several brokerages recently commented on SLM. Wall Street Zen raised shares of SLM from a “sell” rating to a “hold” rating in a research note on Saturday, October 25th. Morgan Stanley set a $30.00 price target on shares of SLM in a report on Tuesday, December 16th. Weiss Ratings upgraded shares of SLM from a “hold (c)” rating to a “buy (b-)” rating in a research report on Saturday, October 25th. Compass Point lowered shares of SLM from a “buy” rating to a “sell” rating and dropped their target price for the stock from $35.00 to $23.00 in a report on Tuesday, December 9th. Finally, Wells Fargo & Company cut their target price on SLM from $35.00 to $30.00 and set an “overweight” rating on the stock in a research note on Thursday, December 11th. Six equities 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 company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $31.20.

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.