SLM Corporation Reports Strong Q4 2025 Earnings, Projects 12%-14% Loan Growth for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: seekingalpha
- Strong Earnings Performance: SLM Corporation reported a GAAP diluted EPS of $1.12 for Q4 2025 and $3.46 for the full year, representing a 29% increase over 2024, indicating a significant enhancement in the company's profitability.
- Loan Origination Growth: The total private education loan originations reached $7.4 billion in 2025, a 6% increase year-over-year, with expectations of 12%-14% growth in 2026, reflecting the company's proactive response to market demand.
- Capital Return Strategy: The company repurchased 3.8 million shares for $106 million in Q4, totaling $373 million for the full year, demonstrating a strong commitment to shareholder returns and effective capital management.
- Strategic Partnership: The new strategic partnership is expected to drive 30%-40% of future loan originations, enhancing the company's capital efficiency and laying a solid foundation for future growth.
Analyst Views on SLM
Wall Street analysts forecast SLM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SLM is 31.09 USD with a low forecast of 23.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 26.430
Low
23.00
Averages
31.09
High
37.00
Current: 26.430
Low
23.00
Averages
31.09
High
37.00
About SLM
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
