SLM

SLM announced a strategic partnership with Sixth Street to diversify funding for student loans while retaining loans on its balance sheet to capture higher net interest margins. However, the company lowered 2026 earnings guidance to $1.95-$2.05 per share and raised net charge-off guidance to $400-$420 million due to disrupted debt resolution practices. Despite strategic wins, higher charge-offs and lower earnings offset the positive developments.

Sallie Mae reported a quarterly loss of $0.19 per share, significantly missing the consensus estimate of $0.12 and declining from $0.63 earnings per share a year ago. The company also missed revenue expectations at $339.32 million versus the estimate of $353.66 million. With a Zacks Rank #3 (Hold) rating and the Financial - Consumer Loans industry ranking in the bottom 26% of industries, the stock is expected to perform in line with the market.

Wall Street analysts forecast Sallie Mae will report Q3 earnings of $0.12 per share, representing an 81% year-over-year decline, with revenues expected at $353.66 million (down 5.2% YoY). Key metrics show declining performance across Net Interest Margin (4.9% vs 5.2%), Net Interest Income ($349.10M vs $372.98M), and Total Non-Interest Income ($102.97M vs $172.70M). The stock has declined 8.2% over the past month and carries a Zacks Rank #3 (Hold) rating.