SLM Corp (SLM): Sallie Mae Reports Third Quarter 2026 Financial Results
SLM Corp (SLM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 News Release For Immediate Release Sallie Mae Reports Third Quarter 2026 Financial Results NEWARK, Del., Oct. 22, 2026 — Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released third quarter 2026 financial results. Complete financial results and related ma
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data and forward guidance, making it a primary source for traders.
Market read
The earnings and guidance update are material for equity investors and may influence the broader education‑finance sector.
What to watch
The $90 million charge‑offs and rising non‑interest expenses may offset some upside from guidance.
Sallie Mae reported a GAAP net loss attributable to common stock of $35,904 (Dollars in thousands), or $0.19 per diluted common share, as record $3.4 billion Private Education Loan originations and higher peak-season expenses were accompanied by increased credit-loss provisions and net charge-offs.
Private Education Loan originations grew 15% and graduate originations grew 119%, but the company reported a GAAP loss, net charge-offs increased, non-interest expenses increased 22%, and full-year diluted earnings guidance was reduced to $1.95 to $2.05 from $3.10 to $3.20.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Private Education Loan originations, Q3 2026other | $3.4B | – | 15% growth from the year-ago quarter |
| Graduate Loan originations, Q3 2026other | 119% growth | – | 119% growth in Graduate Loan originations during the first academic year following PLUS reform |
| Interest income: Loans, three months ended September 30, 2026GAAP | $559.2M | – | – |
| Interest income: Investments, three months ended September 30, 2026GAAP | $31.87M | – | – |
| Interest income: Cash and cash equivalents, three months ended September 30, 2026GAAP | $25.43M | – | – |
| Total interest income, three months ended September 30, 2026GAAP | $616.5M | – | – |
| Interest expense: Deposits, three months ended September 30, 2026GAAP | $199.1M | – | – |
| Interest expense: Short-term borrowings, three months ended September 30, 2026GAAP | $570K | – | – |
| Interest expense: Long-term borrowings, three months ended September 30, 2026GAAP | $77.51M | – | – |
| Total interest expense, three months ended September 30, 2026GAAP | $277.2M | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $339.3M | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $213.7M | – | – |
| Net interest income after provisions for credit losses, three months ended September 30, 2026GAAP | $125.6M | – | – |
| Gains on sales of loans, net, three months ended September 30, 2026GAAP | $3.65M | – | – |
| Gains (losses) on securities, net, three months ended September 30, 2026GAAP | −$13.97M | – | – |
| Other income, three months ended September 30, 2026GAAP | $46.47M | – | – |
| Total non-interest income, three months ended September 30, 2026GAAP | $36.15M | – | – |
| Compensation and benefits expense, three months ended September 30, 2026GAAP | $98.44M | – | – |
| FDIC assessment fees, three months ended September 30, 2026GAAP | $5.46M | – | – |
| Other operating expenses, three months ended September 30, 2026GAAP | $116.2M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $220.1M | – | – |
| Acquired intangible assets amortization expense, three months ended September 30, 2026GAAP | $635K | – | – |
| Total non-interest expenses, three months ended September 30, 2026GAAP | $220.7M | – | 22% increase from the year ago quarter |
| Income (loss) before income tax (benefit) expense, three months ended September 30, 2026GAAP | −$58.91M | – | – |
| Income tax (benefit) expense, three months ended September 30, 2026GAAP | −$26.65M | – | – |
| Net income (loss), three months ended September 30, 2026GAAP | −$32.26M | – | – |
| Preferred stock dividends, three months ended September 30, 2026GAAP | $3.64M | – | – |
| Net income (loss) attributable to SLM Corporation common stock, three months ended September 30, 2026GAAP | −$35.90M | – | – |
| Basic earnings (loss) per common share, three months ended September 30, 2026GAAP | $(0.19) | – | – |
| Diluted earnings (loss) per common share, three months ended September 30, 2026GAAP | $(0.19) | – | – |
| Average common shares outstanding, three months ended September 30, 2026GAAP | 185,566 | – | – |
| Average common and common equivalent shares outstanding, three months ended September 30, 2026GAAP | 185,566 | – | – |
| Declared dividends per common share, three months ended September 30, 2026GAAP | $0.13 | – | – |
| Net interest income, nine months ended September 30, 2026GAAP | $1.05B | – | – |
| Provision for credit losses, nine months ended September 30, 2026GAAP | $327.9M | – | – |
| Total non-interest income, nine months ended September 30, 2026GAAP | $289.0M | – | – |
| Total non-interest expenses, nine months ended September 30, 2026GAAP | $586.8M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $334.2M | – | – |
| Net income attributable to SLM Corporation common stock, nine months ended September 30, 2026GAAP | $323.4M | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $1.68 | – | – |
| Declared dividends per common share, nine months ended September 30, 2026GAAP | $0.39 | – | – |
| Net charge-offs, Q3 2026other | $90M | – | – |
| Delinquencies as a percentage of loans in repayment, September 30, 2026other | 4.2% | – | – |
| Percentage of loans in forbearance, September 30, 2026other | 2.3% | – | – |
| Total allowance percentage of Private Education Loan exposure, September 30, 2026other | 5.89% | – | – |
| Average winning FICO at approval, Q3 2026other | 757 | – | up from the year-ago quarter |
| Cosigner rate, Q3 2026other | 92% | – | – |
| Cost of funds, Q3 2026other | 4.21% | – | – |
Full year 2026 outlook
- Operating expenses$750 to $780 million
- NoteDiluted Earnings per Common Share: $1.95 to $2.05
- NotePrivate Education Loan Originations Growth: 12% to 14%
- NoteNet Charge-offs: $400 to $420 million
Capital returns
- Repurchased 5.1 million shares of common stock for $132.2 million during the third quarter of 2026.
- Repurchased 18.1 million shares of common stock for $415.6 million for the nine months ended Sept. 30, 2026.
- $111 million of capacity remained available under the Company’s 2026 Share Repurchase Program as of Sept. 30, 2026.
- Declared dividends per common share were $0.13 for the three months ended September 30, 2026 and $0.39 for the nine months ended September 30, 2026.
What drove it
- Private Education Loan originations were $3.4 billion, representing 15% growth from the year-ago quarter.
- Graduate Loan originations grew 119% during the first academic year following PLUS reform.
- Management attributed the record peak season to new volume and customers following PLUS reform.
- Cost of funds was 4.21%, compared to 4.24% in the year-ago quarter, due in part to actions taken to extend the duration of fixed-rate funding.
- The company entered a strategic partnership with a leading global investment firm.
Concerns
- GAAP net loss per common share was $0.19, primarily due to provision and expenses related to the company’s highest ever year-over-year originations growth.
- Third-quarter net charge-offs totaled $90 million and were affected by misaligned third-party debt resolution practices involving a small, high-ability-to-pay borrower segment progressing straight through delinquency to default.
- Borrower adoption of the company’s strategies for managing the affected borrower population has been slower than anticipated.
- Total non-interest income was $36,145 (Dollars in thousands), versus $172,702 (Dollars in thousands) in the year-ago quarter, as gains on sales of loans, net were $3,650 (Dollars in thousands) versus $135,958 (Dollars in thousands).
- The company reduced full-year diluted earnings per common share guidance to $1.95 to $2.05 and raised full-year net charge-off guidance to $400 to $420 million.
What to watch
- Fourth-quarter execution against full-year diluted earnings per common share guidance of $1.95 to $2.05.
- Net charge-offs against full-year guidance of $400 to $420 million and the pace of borrower adoption of revised recovery strategies.
- Private Education Loan originations growth against full-year guidance of 12% to 14%.
- Non-interest expenses against full-year guidance of $750 to $780 million.
- Execution of strategic partnership loan sales and the remaining $111 million of 2026 share repurchase capacity.
Balance sheet and cash flow
- Cash and cash equivalents were $2,165,175 (Dollars in thousands) at September 30, 2026, compared with $4,241,265 (Dollars in thousands) at December 31, 2025.
- Total investments were $2,992,536 (Dollars in thousands) at September 30, 2026, compared with $1,922,714 (Dollars in thousands) at December 31, 2025.
- Loans held for investment were $20,626,170 (Dollars in thousands) at September 30, 2026, compared with $20,332,124 (Dollars in thousands) at December 31, 2025.
- Loans held for sale were $1,442,105 (Dollars in thousands) at September 30, 2026, compared with $933,256 (Dollars in thousands) at December 31, 2025.
- Deposits were $20,760,905 (Dollars in thousands) at September 30, 2026, compared with $21,060,151 (Dollars in thousands) at December 31, 2025.
- Short-term borrowings were $898,729 (Dollars in thousands) at September 30, 2026, compared with $498,415 (Dollars in thousands) at December 31, 2025.
- Long-term borrowings were $5,535,923 (Dollars in thousands) at September 30, 2026, compared with $5,362,494 (Dollars in thousands) at December 31, 2025.
- Total assets were $29,840,996 (Dollars in thousands) and total liabilities were $27,585,482 (Dollars in thousands) at September 30, 2026.
- Total equity was $2,255,514 (Dollars in thousands) at September 30, 2026, compared with $2,451,358 (Dollars in thousands) at December 31, 2025.
- The company completed an initial seasoned portfolio loan sale of $143 million of Private Education Loans, including $129 million of principal and $14 million of capitalized interest.
Analysis
SLM delivered record quarterly Private Education Loan originations of $3.4 billion, up 15% from the year-ago quarter. Graduate Loan originations grew 119% during the first academic year following PLUS reform. Management described the period as its largest single quarter of originations and cited new volume and customers following PLUS reform. Origination credit quality remained strong, with an average winning FICO at approval of 757 and a 92% cosigner rate.
The originations growth did not translate into quarterly profitability. Net interest income was $339,322 (Dollars in thousands), below $372,977 (Dollars in thousands) a year earlier, while provision for credit losses increased to $213,675 (Dollars in thousands) from $179,462 (Dollars in thousands). Total non-interest income declined to $36,145 (Dollars in thousands) from $172,702 (Dollars in thousands), including a substantial reduction in gains on sales of loans, net. The company reported a GAAP net loss attributable to common stock of $35,904 (Dollars in thousands), compared with net income attributable to common stock of $131,856 (Dollars in thousands), and diluted loss per common share of $0.19 compared with diluted earnings per share of $0.63.
Credit performance is the principal operating issue. Net charge-offs totaled $90 million, compared with $77,531 in the prior-year period, and management linked the increase primarily to misaligned third-party debt resolution practices and related recovery-strategy shifts. Delinquencies represented 4.2% of loans in repayment versus 4.0%, while the total allowance percentage of Private Education Loan exposure improved to 5.89% from 5.93%. Management said its strategies for the affected borrower group are gaining traction, but that borrower adoption has been slower than anticipated.
Expenses also increased as the company pursued peak-season growth. Total non-interest expenses were $220,702 (Dollars in thousands), a 22% increase from the year-ago quarter, which management attributed largely to peak-season costs to capture volume and customers following PLUS reform. Cost of funds improved modestly to 4.21% from 4.24%, supported in part by extending fixed-rate funding duration. The company also completed a $143 million seasoned portfolio loan sale through a new strategic partnership and repurchased 5.1 million shares for $132.2 million.
The revised outlook signals that management expects the recent business and macroeconomic developments to weigh on fourth-quarter and full-year performance. Full-year diluted earnings per common share guidance was lowered to $1.95 to $2.05 from $3.10 to $3.20, while net charge-off guidance rose to $400 to $420 million from $365 to $385 million. Originations growth guidance remains 12% to 14% and non-interest expense guidance remains $750 to $780 million, making credit performance, recovery execution, and the cost of sustaining new volume the central factors for the remainder of 2026.
Management, verbatim
We delivered a record peak season, highlighted by the largest single quarter of originations in the Company’s history. Credit quality of originations remained strong, and we’re encouraged by the significant growth in graduate student lending following changes to federal student loan programs. We believe our growing strategic partnerships business and disciplined balance sheet management provide flexibility in a dynamic interest rate environment while supporting our ability to serve more students and families.
Jonathan Witter, CEO, Sallie Mae
Not in the filing
stated, not guessed- Total revenue was not reported.
- Segment revenue and segment profitability were not reported.
- Gross profit and gross margin were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Non-GAAP earnings, non-GAAP EPS, and non-GAAP operating metrics were not reported.
- A tax rate was not reported.
- Forward revenue guidance was not reported.
- Forward gross margin guidance was not reported.
- Prior-quarter amounts were not reported for most detailed income statement line items.
- No separate previous earnings release outlook was provided for actual-versus-prior-guidance comparison.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sallie Mae disclosed Q3 2026 results via an SEC Form 8‑K, highlighting record loan originations, a modest GAAP loss per share, and an updated full‑year outlook.
Ticker impact
Sallie Mae (Nasdaq:SLM) released its Q3 2026 earnings and updated full‑year guidance, including updated diluted EPS guidance to $3.10‑$3.20 and higher loan‑originations growth expectations.
likely upside as investors price in updated EPS guidance and strong loan‑originations growth
Guidance lift from $1.95‑$2.05 to $3.10‑$3.20 EPS and higher originations growth signals better profitability, which should support the stock price.
Market effects
Positive outlook for the private student‑loan sector may lift peers with similar exposure.
U.S. consumer‑credit markets could see modest gains as loan demand appears robust.
Limited to U.S. education‑finance space; minimal global spillover.
Counterpoint
Higher loan originations could increase credit‑loss risk if interest rates rise, potentially weighing on the stock.
Key entities
- companySallie Mae
U.S. listed private student‑loan provider (Nasdaq:SLM).
