SLM Corporation (SLM) AI Stock Analysis

SLM Corporation, headquartered in Newark, Delaware, operates as a prominent provider of private education loans in the United States through its subsidiaries. Established in 1972 and formerly known as New BLC Corporation, the company rebranded to SLM Corporation in December 2013. Its primary business revolves around originating and servicing private education loans that help students and their families finance higher education costs. Additionally, the company offers retail deposit accounts, including certificates of deposit, money market deposit accounts, and high-yield savings accounts, alongside credit card loans to serve broader consumer financial needs.

SLM Corporation grew annual revenue from $2.41B in FY2021 to $3.11B in FY2025, achieving a 5-year revenue CAGR of 5.8%. Revenue fluctuated over this span, falling 1.8% in FY2022 to $2.37B and 23.5% in FY2023 to $1.81B, before surging 65.1% in FY2024 to $2.99B. Net income expanded from $469.0M in FY2022 to $744.8M in FY2025, alongside an operating margin of 31.9% and diluted EPS of $3.47. In the trailing twelve months ended June 30, 2026, revenue stood at $1.69B with a profit margin of 43.6%. For the latest quarter, revenue rose 8.1% year-over-year, while quarterly earnings fell 9.4%.

As of June 30, 2026, SLM Corporation held $4.64B in cash and short-term investments against $5.84B in total debt, resulting in net debt of $1.20B. Total assets stood at $28.58B and shareholders' equity reached $2.47B, generating a debt-to-equity ratio of 2.36 and a current ratio of 1.31. Operating cash flow and free cash flow were both $575.5M in FY2025. During FY2025, capital allocation included $368.7M directed to share buybacks and $700.0M paid in dividends.

At a market cap of $4.10B and last close of $21.81, SLM Corporation trades at a trailing P/E of 6.1x and forward P/E of 6.9x, both below the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. Its price-to-sales multiple is 2.4x compared to the peer median of 3.2x, while price-to-book sits at 2.0x. Over the past year, SLM's share price declined 11.5%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock gained 40.7% versus 83.0% for SPY.

SLM Corporation pays a quarterly dividend with an annual forward payout of $0.52 per share, yielding 2.39%. The company maintains a payout ratio of 14.5% and has paid dividends for 8 consecutive years. Its 5-year annualized dividend growth rate stands at 34.1%, with the last ex-dividend date on September 4, 2026.

Wall Street coverage consists of 5 Strong Buy, 2 Buy, 3 Hold, and 1 Sell ratings. The mean price target is $28.36, representing 30.0% upside compared to the last close of $21.81. For FY2026, consensus estimates project revenue of $1.43B and EPS of $3.12, reflecting a 9.8% decrease in EPS. Across the last 4 quarters, SLM beat EPS estimates 2 times. The next earnings release is scheduled for October 22, 2026.

This page is an AI-written research summary of SLM Corporation (SLM). 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.

Related: SLM income statement, SLM balance sheet, SLM key metrics, SLM analyst forecast, SLM chart. See the SLM stock overview for the latest quote and news.