SLM (SLM) Q3 2026 Earnings Report

The call was predominantly positive, supported by record origination volume, 119% growth in graduate originations, the addition of a second strategic funding partner, improving early loss-mitigation indicators, continued share repurchases and solid capital and liquidity. The main negatives were higher charge-off guidance, elevated delinquency and credit provisions, higher operating expenses, peak-season delays and the decision to defer a planned loan sale that reduced 2026 EPS guidance. Management nevertheless expressed confidence in future origination growth, expense management, recovery performance and the flexibility of its funding strategy.

Sallie Mae expects full year originations to be in line with guidance of 12% to 14% growth, full year net charge offs of $400 million to $420 million with a midpoint $45 million higher than that of our original range, and full year 2026 EPS of $1.95 to $2.05 a share; the company reaffirmed its non interest expense and origination guidance, expects to land within its non interest expense guidance range for the year, and said non-interest expense will now be closer to the high end of the range. The company expects to exhaust most of its current share repurchase authorization before the end of the year, believes meaningful loan sales will be a part of its 2027 plan and beyond, and said its base case for next year is flat balance sheet to maybe single digit growth of the balance sheet, with premiums that are above sort of a minimum threshold level.