SLM raises 2026 diluted EPS outlook

SLM Corp

SLM Corp

SLM

0.00


Overview

  • U.S. private student lender's Q1 diluted EPS rose yr/yr, net income increased slightly

  • Private education loan originations grew 5% from prior yr quarter

  • Company raised full-year 2026 diluted EPS guidance


Outlook

  • SLM raises full-year 2026 diluted EPS guidance to $3.10-$3.20 per share

  • Company expects 12%-14% growth in private education loan originations for 2026

  • SLM forecasts 2026 net charge-offs of $345 mln-$385 mln and non-interest expenses of $750 mln-$780 mln


Result Drivers

  • LOAN ORIGINATIONS - Private education loan originations increased 5% yr/yr, supporting earnings growth

  • BALANCE SHEET MANAGEMENT - Net interest margin of 5.29% and lower cost of funds reflected effective balance sheet management

  • STRATEGIC ACTIONS - Private Education Loan sales generated $146 mln gain on sale, supporting earnings and capital flexibility


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 EPS

$1.54

Q1 Net Income

$308 mln

Q1 Net Interest Income

$375 mln

Q1 Credit Loss Provision

-$11 mln

Q1 Net Interest Margin

5.29%

Q1 ROCE

56.40%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the consumer lending peer group is "buy"

  • Wall Street's median 12-month price target for SLM Corp is $29.00, about 25.5% above its April 22 closing price of $23.10

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago


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