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Navient's Q3 Earnings on the Deck: Here's What You Should Know

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Key Takeaways

  • Navient will report Q3 2025 earnings before the bell on Oct. 29.
  • Revenue is expected to rise 1.6%, while EPS is projected to decline 35.7% year over year.
  • Cost-control efforts and business divestitures are expected to have lowered expenses.

Navient Corporation (NAVI - Free Report) is scheduled to report third-quarter 2025 results on Oct. 29, before the opening bell. Its quarterly revenues are expected to have risen, while earnings are expected to have declined on a year-over-year basis.

In the last reported quarter, NAVI’s adjusted earnings missed the Zacks Consensus Estimate. The results were affected by a decrease in net interest income (NII) and other income, along with higher provision for loan losses. However, lower expenses acted as a tailwind.

NAVI has an impressive earnings surprise history. Its earnings outpaced estimates in the trailing three quarters and missed once, with the average earnings surprise being 17.97%.

Navient's Price and EPS Surprise

The Zacks Consensus Estimate for earnings of 18 cents per share has remained unchanged in the past week. The figure indicates a 35.7% plunge from the year-ago reported figure.

The consensus estimate for sales of $142.2 million suggests a rise of 1.6%.

Factors to Influence Navient’s Results in Q3

Revenues: Per the Fed’s latest data, consumer loan demand was solid in the third quarter despite tariff-related uncertainties. As such, Navient’s Consumer Lending segment is expected to have recorded a decent rise in revenues. However, the Federal Education Loans segment revenue is likely under pressure due to lower prepayment levels and subdued originations.

The Zacks Consensus Estimate for NII (Core) is pegged at $142.2 million, indicating a sequential rise of 8.6%. The consensus estimate for NII (Federal Education loan) is pegged at $50.3 million, suggesting a 2.7% rise on a sequential basis. The Zacks Consensus Estimate for NII (consumer lending) is pegged at $107.8 million, implying a decline of 4.6%.

The consensus estimate for servicing revenues is pegged at $9.9 million, indicating a 29.1% fall from the prior quarter.

The Zacks Consensus Estimate for total non-interest income of $23.9 million indicates a 27.5% decline sequentially.

Expenses: Navient’s ongoing cost-control initiatives are expected to have supported operating efficiency and reduced expenses in the third quarter. The company’s strategic actions, including the sale of its Government Services and Healthcare Services businesses, workforce reduction efforts, and outsourcing of servicing operations to MOHELA, are likely to have contributed to a further decline in operating expenses in the to-be-reported quarter.

What the Zacks Model Reveals for Navient

NAVI does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat. 

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Navient is -3.44%.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of NAVI’s Peers

Capital One’s (COF - Free Report) third-quarter 2025 adjusted earnings of $5.95 per share widely surpassed the Zacks Consensus Estimate of $4.20. The bottom line also compared favorably with $5.48 in the prior quarter.

COF’s results benefited from an increase in NII and non-interest income, and lower provisions. Also, higher loans and a stable deposit balance supported the performance. However, a rise in expenses was undermining the factor.

Ally Financial’s (ALLY - Free Report) third-quarter 2025 adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.

Results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors for ALLY.


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