SLM Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 23 April 2026: press release. Guidance figures: 1 raised, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Full-year EPS guidance raised: The company raised its full-year 2026 GAAP diluted EPS range to $3.10 to $3.20, from $2.70 to $2.80 in the January release. Source
• Diluted EPS rose year over year: Diluted EPS was $1.54, up from $1.40 a year earlier. Management linked the rise to loan sales and to decisions on funding, expenses and capital. Source
• Originations grew 5%: Private Education Loan originations rose 5% from the year-ago quarter. Source
• Net interest margin rose to 5.29%: Net interest margin was 5.29%, up from 5.21% in the fourth quarter and 5.27% a year earlier. Source
• Net charge-offs were $89 million: Net charge-offs were $89 million, which the company described as consistent with its expectations and full-year guidance. Source
• Delinquencies rose year over year: Delinquencies were 3.98% of loans in repayment, up from 3.58% a year earlier and 4.00% at year-end 2025. Source
• Repurchased 12.0 million shares: The company repurchased 12.0 million common shares for $259 million in the quarter and paid a $0.13 quarterly dividend per share. Source

“Our first quarter results underscore the strength and durability of our strategy and franchise.”

Jonathan Witter, CEO

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 diluted EPS guidance was raised, from $2.70 to $2.80 to $3.10 to $3.20. Source
• New: A $200 million accelerated share repurchase was entered in March 2026; the prior release did not describe one. Source

Full-year 2026 guidance

• Full-year EPS guidance raised: The company raised its full-year 2026 GAAP diluted EPS range to $3.10 to $3.20, from $2.70 to $2.80 in the January release. Source
• Originations growth guidance kept: The full-year Private Education Loan originations growth range of 12% to 14% was unchanged from the prior release. Source
• Charge-off and expense ranges kept: Net charge-off guidance of $345 million to $385 million and non-interest expense guidance of $750 million to $780 million were both unchanged. Source

Earnings and income drivers

• Diluted EPS rose year over year: Diluted EPS was $1.54, up from $1.40 a year earlier. Management linked the rise to loan sales and to decisions on funding, expenses and capital. Source
• Non-interest income fell year over year: Non-interest income was $185 million, against $206 million a year earlier and $77 million in the fourth quarter. Gains on loan sales made up most of it. Source
• Net income edged up: Net income was $308 million, against $305 million a year earlier. Income before income tax was $400 million, against $403 million. Source

“First quarter 2026 results also benefited from strategic balance sheet actions”

SLM Corp., press release

Originations and loan book

• Originations grew 5%: Private Education Loan originations rose 5% from the year-ago quarter. Source
• Average loans reached $23.3 billion: Average loans outstanding, net, were $23.3 billion, against $22.9 billion in the fourth quarter of 2025. Source
• Held-for-investment loans declined: Loans held for investment, net, were $19,887 million, down from $20,332 million at year-end and $21,091 million a year earlier. Held-for-sale loans fell to $236 million from $933 million. Source

Margin, funding and interest

• Net interest margin rose to 5.29%: Net interest margin was 5.29%, up from 5.21% in the fourth quarter and 5.27% a year earlier. Source
• Cost of funds fell to 4.13%: Cost of funds was 4.13%, against 4.14% in the fourth quarter and 4.23% a year earlier. Management cited funding discipline. Source
• Deposits fell from year-end: Deposits were $20.5 billion at quarter end, versus $21.1 billion at year-end. Brokered deposits were $8.7 billion. Source
• Interest income and expense eased: Total interest income was $649 million, against $656 million a year earlier. Total interest expense was $274 million, against $281 million. Source

Expenses and efficiency

• Expenses rose from year-ago: Total non-interest expenses were $171 million, up from $155 million a year earlier. Total operating expenses were $170 million. Source
• Efficiency ratio rose year over year: The efficiency ratio was 30.6%, up from 26.6% a year earlier and below 34.6% in the fourth quarter. Source
• FDIC fees fell sharply: FDIC assessment fees were $4.4 million, down from $12.4 million a year earlier. Other operating expenses rose to $62.5 million from $50.4 million. Source

Credit performance

• Net charge-offs were $89 million: Net charge-offs were $89 million, which the company described as consistent with its expectations and full-year guidance. Source
• Delinquencies rose year over year: Delinquencies were 3.98% of loans in repayment, up from 3.58% a year earlier and 4.00% at year-end 2025. Source
• Hardship forbearance edged higher: Loans in hardship forbearance were 0.99%, against 0.92% a year earlier. The balance was about $157 million. Source
• Negative provision for credit losses: The provision for credit losses was a negative $11 million, against a $23 million provision a year earlier and a negative $19 million in the fourth quarter. Source

Capital return and cash

• Repurchased 12.0 million shares: The company repurchased 12.0 million common shares for $259 million in the quarter and paid a $0.13 quarterly dividend per share. Source
• Repurchase capacity left at quarter end: $242 million of capacity remained at March 31, 2026, under the 2026 program, which was authorized at up to $500 million in January. Source
• Cash rose, equity little changed: Cash and cash equivalents rose to $5.16 billion from $4.24 billion at year-end. Total equity was $2.44 billion, against $2.45 billion. Source

Balance sheet actions

• Loan sale gain supported earnings: Private Education Loan sales produced a $146 million gain on sale, which management said supported earnings and enhanced capital flexibility. Source
• Securitization used in funding: Management said it actively managed its funding profile, including through securitization activity. Source
• Balance sheet efficiency reinforced: Management said the funding activity further reinforced balance sheet efficiency and supported ongoing capital deployment priorities. Source

Figures management reported

Risks management discussed

• Financial: Management reported delinquencies as a share of loans in repayment rising year over year. Source
• Financial: Management reported loans in hardship forbearance higher year over year, a credit measure it tracks. Source

Earlier plans management reported on

• On track: Management said first quarter expenses were consistent with its expectations and the full-year non-interest expense range. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.