SLM (NASDAQ:SLM) Issues FY 2026 Earnings Guidance

SLM (NASDAQ:SLM) updated its FY 2026 earnings guidance on Friday. The company provided EPS guidance of 1.950-2.050 for the period, compared to the consensus earnings per share estimate of 3.120.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. TD Cowen decreased their target price on SLM from $32.00 to $27.00 and set a “buy” rating for the company in a research note on Friday. JPMorgan Chase & Co. lowered their target price on SLM from $25.00 to $22.00 and set an “underweight” rating on the stock in a report on Monday, October 12th. Morgan Stanley dropped their price target on shares of SLM from $30.00 to $26.00 and set an “overweight” rating on the stock in a research report on Friday. Royal Bank Of Canada cut their price target on shares of SLM from $28.00 to $26.00 and set an “outperform” rating for the company in a report on Friday. Finally, Barclays cut their price target on shares of SLM from $26.00 to $22.00 and set an “equal weight” rating for the company in a report on Friday. Five research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $26.44.

SLM Price Performance

NASDAQ SLM opened at $19.42 on Friday. The company has a current ratio of 1.33, a quick ratio of 1.32 and a debt-to-equity ratio of 2.63. SLM has a 1 year low of $17.77 and a 1 year high of $31.06. The company has a market cap of $3.65 billion, a PE ratio of 7.04, a PEG ratio of 1.49 and a beta of 0.96. The stock’s 50-day moving average price is $24.46 and its two-hundred day moving average price is $23.99.

SLM (NASDAQ:SLM) last released its quarterly earnings results on Thursday, October 22nd. The credit services provider reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.36). The firm had revenue of $375.47 million for the quarter, compared to analyst estimates of $453.34 million. SLM had a net margin of 20.43% and a return on equity of 25.75%. The firm’s revenue was down 31.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.63 EPS. On average, analysts predict that SLM will post 3.12 EPS for the current year.

SLM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Friday, December 4th will be given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, December 4th. SLM’s payout ratio is presently 18.84%.

Key Headlines Impacting SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Private education loan originations rose 15% year over year to a record $3.4 billion, while graduate-loan originations increased 119%. SLM also repurchased 5.1 million shares for $132.2 million, supporting per-share value over the longer term. Sallie Mae Reports Third-Quarter Results
• Positive Sentiment: Sixth Street committed to purchase approximately $1.5 billion of student loans annually, potentially expanding SLM’s funding and loan-origination capacity. SLM: Three Key Takeaways
• Neutral Sentiment: Morgan Stanley, RBC, and TD Cowen lowered their price targets to $26, $26, and $27, respectively, but retained positive ratings ranging from overweight to buy. The revisions indicate reduced near-term expectations while implying substantial potential upside from recent levels.
• Negative Sentiment: SLM reported a $35.9 million net loss attributable to common stock, or $0.19 per share, compared with $0.63 of earnings a year earlier. Revenue fell 31.3% year over year to approximately $375.5 million, below the $453.3 million consensus estimate. SLM Quarterly Earnings Results
• Negative Sentiment: Management cut 2026 diluted EPS guidance to $1.95–$2.05 from $3.10–$3.20 and raised expected full-year net charge-offs to $400–$420 million. Third-quarter charge-offs reached about $90 million, reflecting increased defaults tied partly to third-party debt-resolution practices.
• Negative Sentiment: Credit-loss provisions totaled $213.7 million and non-interest expenses rose to roughly $220.7 million as SLM spent more to capture seasonal loan demand. These higher costs overwhelmed the strong origination growth and are the primary reasons investors have sold the stock. Sallie Mae Cuts Full-Year View

SLM Company Profile

SLM Corp., commonly known as Sallie Mae, is a financial services company focused on helping students and families finance higher education. Its primary business is the origination and servicing of private education loans, which can help cover tuition, fees, books, housing and other eligible education-related expenses not fully covered by federal student aid.

The company offers private student loans for undergraduate and graduate education, as well as loans for career-training programs and other education needs.