SLM (NASDAQ:SLM) Announces Quarterly Earnings Results, Beats Estimates By $0.40 EPS

24 Apr 2026, 11:50 by Jessica Moore · The Cerbat Gem

SLM (NASDAQ:SLM – Get Free Report) posted its earnings results 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. SLM had a return on equity of 34.79% and a net margin of 26.04%.The firm had revenue of $559.99 million for the quarter, compared to analyst estimates of $486.05 million. During the same quarter in the prior year, the company earned $1.40 EPS. SLM’s revenue was down 3.6% on a year-over-year basis. 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 Up 1.0%

Shares of SLM traded up $0.23 during mid-day trading on Friday, reaching $23.65. The company’s stock had a trading volume of 3,440,647 shares, compared to its average volume of 3,766,935. SLM has a 12-month low of $17.77 and a 12-month high of $34.97. The stock has a market cap of $4.69 billion, a PE ratio of 6.85, a price-to-earnings-growth ratio of 2.70 and a beta of 1.04. The company has a debt-to-equity ratio of 2.44, a current ratio of 1.28 and a quick ratio of 1.24. The company’s 50 day moving average is $21.17 and its 200 day moving average is $25.18.

SLM Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Thursday, June 4th will be issued 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 is presently 14.99%.

Trending Headlines about SLM

Here are the key news stories impacting SLM this week:

Positive Sentiment: Q1 results beat Wall Street: SLM reported $1.54 EPS vs. ~$1.14 consensus and revenue above estimates, showing stronger profitability and margin performance. Sallie Mae Reports First Quarter 2026 Financial Results and Raises Full-Year 2026 Diluted Earnings per Common Share Guidance
Positive Sentiment: Raised FY‑2026 guidance: Management raised full‑year EPS to $3.10–$3.20, above consensus, and is targeting an incremental $1B of loan sales — both supportive of free‑cash-flow visibility and ROE. Sallie Mae expects 2026 EPS of $3.10-$3.20 as it targets incremental $1B in loan sales
Positive Sentiment: Dividend actions: SLM declared a $0.13 quarterly common dividend and a $1.4269 preferred Series B dividend, which supports income investors and signals confidence in cash generation. Sallie Mae Declares Dividends on Preferred Stock Series B and Common Stock
Neutral Sentiment: Management commentary and strategic initiatives: Conference call and deep-dive coverage highlight growth plans — partnerships and Grad lending expansion — that could drive medium‑term revenue if executed, but timeline and returns remain to be proven. SLM Q1 deep dive: Loan sales, strategic partnerships, and grad lending expansion shape 2026
Neutral Sentiment: Earnings call transcript available — useful for details on credit trends, buyback/repurchase flexibility and capital allocation that investors will parse for durability of the beat. SLM (SLM) Q1 2026 Earnings Call Transcript
Negative Sentiment: Top-line softness: Revenue was down ~3.6% year-over-year despite the beat, highlighting potential pressure in originations or mix that could limit longer‑term top‑line growth. Here’s What Key Metrics Tell Us About Sallie Mae (SLM) Q1 Earnings
Negative Sentiment: Policy and timing risk around Grad PLUS: near‑term changes to student‑loan programs and the July timing mentioned in coverage could create uncertainty for the Grad PLUS opportunity SLM is targeting. SLM earnings set to test Grad Plus opportunity ahead of July shakeup

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. NewEdge Advisors LLC increased its holdings in shares of SLM by 6.6% in the 1st quarter. NewEdge Advisors LLC now owns 21,350 shares of the credit services provider’s stock valued at $627,000 after acquiring an additional 1,319 shares during the last quarter. Captrust Financial Advisors increased its holdings in shares of SLM by 6.1% in the 2nd 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. EverSource Wealth Advisors LLC increased its holdings in shares of SLM by 118.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,995 shares of the credit services provider’s stock valued at $131,000 after acquiring an additional 2,164 shares during the last quarter. Triumph Capital Management purchased a new position in shares of SLM in the 3rd quarter valued at about $69,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in shares of SLM in the 1st quarter valued at about $263,000. Hedge funds and other institutional investors own 98.94% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on SLM. Zacks Research raised SLM from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Morgan Stanley set a $27.00 target price on SLM in a research note on Friday. JPMorgan Chase & Co. decreased their target price on SLM from $26.00 to $22.00 and set an “underweight” rating on the stock in a research note on Thursday, April 9th. Wells Fargo & Company decreased their target price on SLM from $32.00 to $29.00 and set an “overweight” rating on the stock in a research note on Thursday, April 9th. Finally, Royal Bank Of Canada set a $28.00 target price on SLM in a research note on Friday, April 10th. 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 data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $29.80.

View Our Latest Analysis on SLM

About SLM

(Get Free Report)

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.