10-Q · April 23, 2026
Sallie Mae reported Q1 2026 diluted EPS of $1.54, up $0.14 (10%) YoY, and delivered approximately $572 million of revenue (net interest income after provisions $387M + non‑interest income $185M). Loan sale activity…
Earnings analysis · 10-Q
SLM earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
The quarter was materially weaker than expected, with diluted EPS of negative $0.19 versus a $0.18 consensus estimate, provisions for credit losses of $214 million, and net charge-offs of $90.386 million. Full-year 2026…
Read full summary
The quarter was materially weaker than expected, with diluted EPS of negative $0.19 versus a $0.18 consensus estimate, provisions for credit losses of $214 million, and net charge-offs of $90.386 million. Full-year 2026 EPS guidance was reduced to $1.95-$2.05 from $3.10-$3.20, while net charge-off guidance increased to $400-$420 million from $365-$385 million. The 10-Q identifies low overall repricing risk, but a +300-basis-point shock still implies -20.0% EVE sensitivity and -9.9% EAR sensitivity; revenue, margins, cash flow, and segment data were not present in the supplied filing excerpt.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.19
What stood out
-
Continued share repurchases
The company repurchased 5,146,111 shares in the third quarter of 2026, including 5.1 million shares under 10b5-1 trading plans, supporting per-share capital returns despite the quarterly loss reported separately.
-
Repurchase authorization remains active
The 2026 Share Repurchase Program had $111 million of remaining capacity as of September 30, 2026, with the program scheduled to expire on February 4, 2028.
-
Low overall repricing risk
Management characterized the overall repricing risk as low, supported by a $2,790.1 million fixed-rate funding gap that offsets negative gaps in SOFR and non-discrete-reset categories.
-
Reduced interest-rate exposure
The company stated that interest-rate exposure was lower than at year-end 2025 after extending the duration of a portion of its liabilities; planned loan sales also significantly reduce EVE exposure, although those sales are excluded from static EVE modeling.
-
Controls remained effective
Disclosure controls and procedures were concluded to be effective as of September 30, 2026, and the company reported no change in internal control over financial reporting during the quarter.
What to watch
-
Sharp rate shocks could reduce value
A +300-basis-point rate shock produces a -20.0% EVE sensitivity and a -9.9% EAR sensitivity as of September 30, 2026, indicating material modeled downside under a sharp rate increase despite management's low-sensitivity assessment.
-
Funding-index mismatches
The funding gap is negative by $1,053.4 million for daily/weekly/monthly SOFR and negative by $1,485.7 million for non-discrete resets, exposing earnings to basis and repricing risk if short-term indices diverge.
-
Interest-rate models may understate risk
The company cautioned that market disruptions can cause funding indices to temporarily diverge, negatively affecting earnings; its simulations also exclude changes in credit quality, balance-sheet mix, balance-sheet size, and management actions.
-
Higher credit losses and lower EPS outlook
Credit outlook deteriorated materially: full-year 2026 net charge-off guidance increased to $400-$420 million from $365-$385 million, while diluted EPS guidance fell to $1.95-$2.05 from $3.10-$3.20.
-
Quarterly loss and elevated provisions
The company reported diluted EPS of negative $0.19 for the quarter versus a $0.18 consensus estimate, while provisions for credit losses increased to $214 million and net charge-offs reached $90.386 million.
-
No updated risk-factor disclosure
The 10-Q states that no risk-factor changes were identified and directs investors to the risk factors in the 2025 Form 10-K; therefore, the filing does not provide a refreshed quantitative assessment of broader operating risks.
Management's outlook
Full-year 2026 diluted EPS guidance was lowered from $3.10-$3.20 to $1.95-$2.05. Net charge-off guidance was raised from $365-$385 million to $400-$420 million; originations growth guidance remained 12%-14% and non-interest expense guidance remained $750-$780 million. The 10-Q excerpt does not provide additional quantitative quarterly guidance.
Earlier filings 4
10-K · February 19, 2026
SLM (Sallie Mae) reported a year of modest growth and improving credit metrics while initiating a new capital-light strategic partnership. Originations rose 6% to $7.4 billion in 2025 and loans held for investment were…
10-Q · October 23, 2025
SLM reported a quarter with a sizable earnings turnaround driven by higher non‑interest income and loan gains: net income was $135,850,000 and diluted EPS was $0.63 for Q3 2025 versus a net loss of $(45,152,000) and…
10-Q · July 24, 2025
SLM reported roughly steady core interest results but a sharp deterioration in profitability for Q2 2025. Net interest income was $376,820 (thousands) while provisions for credit losses jumped to $148,718 (thousands),…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.