SLM Corp Posts $308M Q1 Profit as Dividend Payout Doubles Year-Over-Year

SLM Corp (NASDAQ: SLM), a consumer banking company specializing in private education loans, reported net income of $307.95 million for the first quarter of fiscal 2026, up from $304.54 million in the same period a year earlier. Diluted earnings per share rose to $1.54 from $1.40. Read more earnings reports.

The Delaware-incorporated lender generated interest and dividend income of $649.31 million for the three months ending March 31, 2026, down 1% from $656.09 million in the prior-year quarter. Operating expenses climbed to $170.36 million from $153.59 million, an increase of 11%.

Labor Costs Drive Expense Growth

Labor and related expenses accounted for much of the uptick in operating costs, rising to $103.45 million from $90.83 million. Interest expense fell sharply to $714,000 from $5.92 million in the year-ago period.

Income tax expense for the quarter totaled $92.40 million, down from $98.58 million in Q1 2025.

Balance Sheet and Capital Allocation

Total assets declined to $29.41 billion as of March 31, 2026, from $29.75 billion at the end of December 2025. Cash and cash equivalents rose to $5.16 billion from $4.24 billion over the same period. Long-term debt increased to $5.67 billion from $5.36 billion.

Stockholders' equity edged down to $2.44 billion from $2.45 billion at year-end 2025. The company paid out $200 million in dividends during the quarter, double the $100 million distributed in Q1 2025.

Common shares outstanding fell to 188.58 million from 199.27 million at the end of 2025, reflecting ongoing share repurchases.

Cash Flow Summary

Cash used in operations totaled $75.96 million for the quarter, an improvement from the $146.05 million outflow in the prior-year period. Cash from investing activities generated $1.59 billion, up from $496.93 million a year earlier. Financing activities consumed $550.35 million, compared to $1.36 billion in Q1 2025.