Navient Corporation (NAVI) AI Stock Analysis

Navient Corporation operates in education loan management and business processing solutions across the United States. The company reports through three segments: Federal Education Loans, Consumer Lending, and Business Processing. Federal Education Loans oversees a portfolio under the Federal Family Education Loan Program (FFELP), offering servicing and asset recovery. Consumer Lending focuses on the ownership, origination, acquisition, and servicing of private education loans for refinancing and in-school expenses. Business Processing delivers revenue cycle outsourcing, accounts receivable management, extended business office support, consulting, and public health programs to state and local governments, courts, and transit authorities.

Revenue fell 23.7% in FY2025 to $3.23B, down from $4.23B in FY2024 and $4.84B in FY2023. Operating margin expanded to 77.1% in FY2025, but the company recorded a net loss of -$80.0M with diluted EPS of -$1.28. Over the trailing twelve months, revenue was $334.0M, with a profit margin of -14.7% and EPS of -$0.49. For the latest quarter ended June 30, 2026, quarterly revenue grew 4.2% year-over-year, while quarterly earnings grew 100.0%. From FY2020 to FY2025, revenue contracted at a compound annual growth rate of -2.9%.

As of June 30, 2026, Navient held $2.14B in cash and short-term investments and $44.34B in total debt, resulting in net debt of $42.20B. Shareholders' equity was $2.40B, yielding a debt-to-equity ratio of 18.49 and a current ratio of 0.51. In FY2025, operating cash flow and free cash flow both reached $441.0M. The company deployed cash toward $111.0M in share buybacks and $63.0M in dividends paid, while reducing its share count by 37.6% over five years.

Navient carries a forward P/E of 9.2x, below the 10.8x median of its US-listed Financial Services peers. Its price-to-sales ratio is 2.6x compared to the peer median of 3.2x, and its price-to-book ratio is 0.4x. Over the past year, NAVI dropped 18.2%, trailing the S&P 500 (SPY) gain of 16.8%. Over five years, NAVI declined 41.4% while the S&P 500 returned 83.0%.

Navient pays an annual forward dividend of $0.64 per share, translating to a dividend yield of 6.90%. The company has paid consecutive dividends for 13 years, with a 5-year annualized dividend growth rate of 0.0%. The dividend payout ratio stands at 200.0%, and its last ex-dividend date was September 4, 2026.

Seven analysts cover the stock, with 1 Strong Buy, 0 Buy, 3 Hold, 2 Sell, and 1 Strong Sell ratings. The mean price target is $9.00, representing a -3.0% decline from the last close of $9.28. For the fiscal year ending December 31, 2026, analysts estimate revenue of $516.0M and EPS of $0.81. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Navient Corporation (NAVI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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