SLM Nasdaq Russell 1000 Earnings call
Sallie Mae (SLM) · Q2 2026 results and valuation
Share price: $16.91 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 23 Jul 2026 and 23 Apr 2026
Net income down 81.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−81.0%
Net income vs Q1 2026
Outlook given
Net income 58.5M vs 308.0M
Revenue −28.4%
Against the same quarter last year (Q2 2025) it is −17.9% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
Less upbeat than 54% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Figure
The report notes that it has been just over a year since the federal PLUS reform reshaped the higher education financing landscape.
Valuation
Is Sallie Mae undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (the standard assumption), the model's fair value is $37.23 a share — the stock trades 55% below it. Today's price assumes −1.4% growth a year.
Current price
$16.91
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-1.4% for 10 yrs
Fair value / share
$37.23
Buy below
$27.92
Price vs fair value
Undervalued 55%
Price vs buy-below price
Undervalued 39%
Read between the lines
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Guidance
SLM expects margin expansion to resume in the second half of the year as excess liquidity is deployed into new loan originations during peak season.
Source quote
“Looking towards the second half of this year, we expect margin expansion to resume as excess liquidity is deployed into new loan originations during our peak season.”
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Guidance
The company updated its guidance from anticipating flattish balance sheet loan sales to its current targets.
Source quote
“When we started the year, we anticipated loan sales to manage a flattish balance sheet this year.”
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Fading
Revenue outlook initially assumed loan sales to maintain a flat balance sheet this year.
Source quote
“This included $1.3 billion of planned new origination sales through our strategic partnerships business as well as a $2 billion... During the first quarter, we executed $3.3 billion in loan sales, generating $146 million in gains at attractive economics. As we have done in the past, when our equity valuation became disconnected from the market value of our loans, we deliberately leaned into our capital flexibility to advance shareholder value.”
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Fading
The overall balance sheet size remained flat-ish in line with original guidance and initial plans.
Source quote
“And again, I think in terms of overall balance sheet size, our original guidance and initial plan was a flat-ish...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“In addition to overall growth, origination credit quality improved modestly year-over-year, with the average FICO score increasing from 754 to 755, while cosigner rates remained strong at 84%.”
“Importantly, revenue growth from servicing and recurring program management fees more than offset a significant portion of these investments, resulting in an efficiency ratio of 48.6%, an increase of just...”
“Compared with the prior year quarter, net interest income decreased by $44 million, while other income increased by $16 million, driven by growth in recurring program management fees from our...”
Full figures
USD · ROIC.AI fundamentals (NASDAQ:SLM, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 401.1M | 560.0M | −28.4% | 403.6M | −0.6% |
| Net income | 58.5M | 308.0M | −81.0% | 71.3M | −17.9% |
| EPS | 0.29 | 1.56 | −81.3% | 0.32 | −9.4% |
| P/E today 6.3 | 7.2 | 5.9 | +1.3 | 16.3 | −9.1 |
Topics
Most discussed now
- Listeners should refer to the discussion of those factors in the company's Form 10-Q and other filings with the SEC.
- As previously communicated, Sallie Mae expected NIM to moderate modestly during the quarter, primarily reflecting the higher liquidity…
- Sallie Mae's reserve rate was 5.89% at the end of the quarter, down 6 basis points from the prior year period,...
- The underlying earnings power of the portfolio remains strong, supported by disciplined funding, attractive asset yields and continued…
- The investments Sallie Mae has made, together with strong credit quality and growing customer demand, position us well for the remainder...
Faded since Q1 2026
- Dropped The employment picture for recent college grads remains resilient even during times of economic uncertainty.
- Dropped While unemployment among recent graduates temporarily rose last summer, the gap versus historical norms closed in March.
- Fading This sentiment is also reflected in improving recent college enrollment trends in FAFSA completion rates that are up almost 20%...
- Dropped Job creation skills are the key
Latest announcements
Official filings, newest first.
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K