Student lender SLM posts Q3 net loss; annual EPS outlook lowered
SLM•SLM reported a third-quarter GAAP loss of $0.19 per share and cut its 2026 diluted EPS outlook to $1.95-$2.05 from $3.10-$3.20. It raised 2026 net charge-off guidance to $400-$420 million while maintaining its loan-origination growth forecast.
1. Quarterly results
Private Education Loan originations grew 15% year over year to a record for a quarter. SLM said its $0.19-per-share GAAP net loss was mainly due to higher provisions and expenses tied to elevated origination volumes.
2. Outlook and credit
SLM lowered its 2026 diluted EPS guidance to $1.95-$2.05 from $3.10-$3.20 and raised its net charge-off guidance to $400-$420 million from $365-$385 million. It maintained its forecast for 12%-14% growth in Private Education Loan originations. The company attributed higher net charge-offs to issues with third-party debt resolution practices and changes to recovery strategies.
3. Share repurchases
SLM repurchased 5.1 million shares for $132.2 million during the quarter.
