SLM Corp (NASDAQ:SLM), the company better known as Sallie Mae, reported financial results for the fourth quarter and full year of 2025 that surpassed analyst expectations on the bottom line. The private student lender’s performance and a significant new capital return announcement are shaping investor sentiment in the aftermath of the report.
Earnings and Revenue Performance
The company’s fourth-quarter results presented a mixed picture relative to Wall Street forecasts. While profitability exceeded estimates, the top-line revenue figure came in below expectations.
- Earnings Per Share (EPS): Sallie Mae reported non-GAAP earnings of $1.12 per share for Q4 2025. This solidly beat the consensus analyst estimate of $0.94 per share, representing an outperformance of approximately 19.7%.
- Revenue: The company posted quarterly revenue of $454.1 million. This marked a healthy year-over-year increase of 16.4%. However, it fell short of the analyst revenue estimate of $419.8 million provided in the context. It is important to note a potential discrepancy in the data, as another provided figure lists reported revenue at $377.1 million. The company's official release should be consulted for the definitive number, but the outperformance on EPS remains the key takeaway.
Market Reaction and Capital Return Initiative
The immediate market reaction to the earnings release was decisively positive. Following the announcement, SLM shares surged approximately 6.9% in after-market trading. This bullish move suggests investors are focusing on the earnings beat and a major corporate action detailed in the press release.
The most significant news alongside the earnings was the authorization of a new stock repurchase program. Sallie Mae’s Board of Directors approved a plan to buy back up to $500 million of the company’s common stock over the next approximately 24 months. This new "2026 Share Repurchase Program" will run concurrently with the existing "2024 Share Repurchase Program," which still has capacity remaining from its original $650 million authorization. This aggressive return of capital to shareholders signals management's confidence in the company's financial strength and future cash flow generation, and is likely a primary driver behind the positive after-hours price action.
Looking Ahead
While the press release did not provide specific financial guidance for the coming year, analyst estimates offer a benchmark for future performance. For the full year 2026, analysts are currently forecasting sales of approximately $1.78 billion. For the upcoming first quarter of 2026, the consensus sales estimate stands at roughly $433.4 million. Investors will be listening closely to the earnings conference call for any commentary from management that may align with or diverge from these projections.
Press Release Summary
Beyond the financial figures, the key announcements from Sallie Mae’s press release are:
- The release of Q4 and full-year 2025 financial results.
- The authorization of a new $500 million share repurchase program effective January 22, 2026, with a two-year completion window.
- The confirmation that the previous $650 million repurchase program from 2024 remains active until early February 2026.
- Details for the upcoming earnings conference call scheduled for 5:30 p.m. ET on January 22, 2026.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data on SLM's earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
