SLM
SLM Corp (SLM) Q2 2026 Earnings Call Highlights: Navigating Growth Amidst Challenges
Article Summary
HOLD- SLM Corp. (NASDAQ: SLM) reported a 4.5% increase in loan originations year-over-year, reaching $716 million, with SLM successfully launching new products including enhancements to medical, dental, law, and MBA loans.
- Credit quality improved with the average FICO score increasing from 754 to 755, and cosigner rates remained strong at 84%.
- The company completed a $200 million accelerated share repurchase program, reducing shares outstanding by approximately 6.5%.
- Net interest income decreased by $44 million compared to the prior year quarter, with charge-offs rising to $113 million from $94 million, partly due to misaligned third-party debt resolution practices.
- Noninterest expenses rose by $28 million driven by onetime investments and strategic initiatives.
- Private education loans delinquent 30 days or more increased to 3.7% from 3.5%, and recovery sales were paused due to concerns over debt resolution companies targeting borrowers with ability to pay, impacting short-term recovery strategies.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 1.7% | 25% | 20.0 ptsMinimal (1.7%) - Very weak |
| EPS Growth Next 5Y ? | 3.2% | 25% | 10.0 ptsVery Weak (3.2%) - Minimal expectations |
| Target Price Upside ? | 18.1% | 20% | 60.0 ptsModerate Upside (18.1%) - Target: $28.55 vs Current: $24.18 |
| Gross Margin % ? | 73.4% | 15% | 100.0 ptsExceptional (73.4%) - Strong pricing power |
| Drawdown from 52-Wk High ? | -27.8% | 15% | 80.0 ptsSolid Dip (-27.8%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About SLM
- SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States.
- It provides retail deposit accounts, including high-yield savings accounts, money market accounts, and certificates of deposit; and interest-bearing omnibus accounts.
- The company was formerly known as New BLC Corporation and changed its name to SLM Corporation in December 2013.
- SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.