Sallie Mae closed 2025 with $3.46 in GAAP diluted EPS and a 5.21% net interest margin with a 34.6% efficiency ratio. Management authorized a new $500 million share repurchase program after buying back 12.8 million shares for $373 million in 2025. The company is balancing capital returns with credit normalization as delinquencies rise moderately.
Cyborg Score Rationale
As of February 12, 2026, SLM shares were priced at $24.76, down 14.6% over the past year and underperforming the S&P 500 by 27.5 percentage points. Delinquencies ticked up to 4.0% of loans in repayment from 3.7% a year earlier, and guidance calls for $345 million to $385 million in net charge-offs in 2026, signaling credit normalization. Strong operational metrics offset by credit headwinds and stock underperformance.
Top Insights
Recently appointed Steve Turner as Chief Technology and Enablement Officer (February 2026), signaling digital transformation focus
Strong capital position with $500M new share repurchase authorization and quarterly dividends ongoing
Delinquency rates rising to 4.0% indicating normalizing credit environment post-pandemic, with 2026 charge-off guidance of $345-385M