SLM (SLM) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered diluted EPS of $1.54, up from $1.40 year-over-year, and net income attributable to common stock of $304 million, with private education loan originations rising 5% to $2.91 billion.

• Market share in private education loans increased to 63% at year-end 2025, up from 52% in 2020.

• Strategic execution included robust loan sales, new medical and dental school offerings, and enhanced client acquisition and servicing capabilities.

• Positioned for multi-year growth in undergrad and graduate lending due to federal reforms, with originations expected to rise up to 70% over several years.

• Focus on innovation, digital infrastructure, and customer-centric strategies to drive growth.

Financial highlights

• Net interest income was $375 million, flat year-over-year, with net interest margin improving to 5.29% from 5.27% due to lower funding costs.

• Non-interest expenses increased to $171 million from $155 million year-over-year, reflecting targeted investments in graduate lending.

• Net charge-offs were $89 million, with net charge-offs as a percentage of average loans in repayment at 2.20%.

• Total non-interest income was $185 million, down from $206 million in Q1 2025.

• Return on assets was 4.2%, and return on common equity was 56.4%.

Outlook and guidance

• Full-year 2026 diluted EPS guidance raised to $3.10–$3.20, assuming full $500 million share repurchase and ~$1 billion incremental loan sales.

• Private education loan originations expected to grow 12–14% year-over-year.

• Net charge-offs projected at $345–$385 million and non-interest expenses at $750–$780 million for 2026.

• Management expects continued focus on loan sales, share repurchases, and maintaining robust liquidity and capital buffers.

• Origination growth in 2027 projected to accelerate, especially in graduate lending, with a $5 billion incremental opportunity over time.