SLM raises 2026 diluted EPS outlook

SLM

23/04/2026 21:50

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)