We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Navient Q1 Earnings Beat as Expenses & Provisions Fall Y/Y, Stock Down
Read MoreHide Full Article
Key Takeaways
NAVI posted Q1 EPS of 20 cents, beating estimates, but shares fell nearly 4.6% in early trading.
Navient's NII declined 12.5%, and other income drop 68.6%, weighing on overall performance.
Navient expenses decreased 29% Y/Y, while loan loss provisions fell to $27 million.
Navient Corporation (NAVI - Free Report) reported first-quarter 2026 earnings per share (EPS) of 20 cents, surpassing the Zacks Consensus Estimate of 17 cents. It reported earnings of 28 cents in the prior-year quarter.
Results benefited from lower expenses and a decline in provisions for loan losses. However, a decrease in net interest income (NII) and other income acted as a headwind. Given the concern, NAVI shares lost nearly 4.6% in the early trading session. A full day’s trading session will depict a clearer picture.
Navient’s GAAP net income was $17 million compared with $2 million in the prior-year quarter.
Navient’s NII & Expenses Decline
NII declined 12.5% year over year to $126 million in the first quarter. It missed the Zacks Consensus Estimate by 1.6%.
Total other income decreased 68.6% year over year to $16 million.
Provision for loan losses was $27 million, down from $30 million in the prior-year quarter.
Total expenses decreased 29% year over year to $93 million.
NAVI’s Quarterly Performance of Segments
Federal Education Loans: The segment generated a net income of $22 million, which declined 8.3% year over year.
As of March 31, 2026, the company’s net FFELP loans were $27.2 billion, down 3.2% sequentially.
Consumer Lending: This segment reported a net income of $35 million, which decreased 23.9% from the year-ago quarter.
The private education loan delinquency rate greater than 30 days was 5.5% compared with 6.4% in the prior-year quarter.
As of March 31, 2026, the company’s private education loans were $15.6 billion, which decreased 1.3% from the prior quarter. Navient originated $778 million of private education refinance loans in the reported quarter.
Navient’s Liquidity
To meet liquidity needs, NAVI expects to utilize various sources, including cash and investment portfolio, predictable operating cash flows provided by operating activities, the repayment of principal on unencumbered education loan assets and distributions from securitization trusts. It may also draw down on the secured FFELP Loan and Private Education Loan facilities, issue term asset-backed securities (ABS), enter additional Private Education Loan and ABS repurchase facilities, or issue additional unsecured debt.
Notably, the company had $621 million of total unrestricted cash and liquid investments as of March 31, 2026.
Navient’s Capital Distribution Activities
In the first quarter, the company paid $15 million in common stock dividends.
In the reported quarter, Navient repurchased shares of common stock for $23 million.
Our Take on NAVI
Navient has been an eminent portfolio holder of private education loans. Its diversified business segments are likely to support revenue growth. The strategic actions undertaken to control expenses are expected to support financials in the upcoming period. The company’s first-quarter results benefited from lower expenses and a modest decline in provisions. However, weaker NII remains a near-term concern.
Navient Corporation Price, Consensus and EPS Surprise
Ally Financial (ALLY - Free Report) reported first-quarter 2026 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
Results of ALLY primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Also, lower expenses were a tailwind. An increase in loan and deposit balances further supported the results. However, a rise in provisions was a headwind.
Enova International, Inc. (ENVA - Free Report) reported first-quarter 2026 adjusted earnings per share of $3.87, which increased from $2.98 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.66.
ENVA’s results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Navient Q1 Earnings Beat as Expenses & Provisions Fall Y/Y, Stock Down
Key Takeaways
Navient Corporation (NAVI - Free Report) reported first-quarter 2026 earnings per share (EPS) of 20 cents, surpassing the Zacks Consensus Estimate of 17 cents. It reported earnings of 28 cents in the prior-year quarter.
Results benefited from lower expenses and a decline in provisions for loan losses. However, a decrease in net interest income (NII) and other income acted as a headwind. Given the concern, NAVI shares lost nearly 4.6% in the early trading session. A full day’s trading session will depict a clearer picture.
Navient’s GAAP net income was $17 million compared with $2 million in the prior-year quarter.
Navient’s NII & Expenses Decline
NII declined 12.5% year over year to $126 million in the first quarter. It missed the Zacks Consensus Estimate by 1.6%.
Total other income decreased 68.6% year over year to $16 million.
Provision for loan losses was $27 million, down from $30 million in the prior-year quarter.
Total expenses decreased 29% year over year to $93 million.
NAVI’s Quarterly Performance of Segments
Federal Education Loans: The segment generated a net income of $22 million, which declined 8.3% year over year.
As of March 31, 2026, the company’s net FFELP loans were $27.2 billion, down 3.2% sequentially.
Consumer Lending: This segment reported a net income of $35 million, which decreased 23.9% from the year-ago quarter.
The private education loan delinquency rate greater than 30 days was 5.5% compared with 6.4% in the prior-year quarter.
As of March 31, 2026, the company’s private education loans were $15.6 billion, which decreased 1.3% from the prior quarter. Navient originated $778 million of private education refinance loans in the reported quarter.
Navient’s Liquidity
To meet liquidity needs, NAVI expects to utilize various sources, including cash and investment portfolio, predictable operating cash flows provided by operating activities, the repayment of principal on unencumbered education loan assets and distributions from securitization trusts. It may also draw down on the secured FFELP Loan and Private Education Loan facilities, issue term asset-backed securities (ABS), enter additional Private Education Loan and ABS repurchase facilities, or issue additional unsecured debt.
Notably, the company had $621 million of total unrestricted cash and liquid investments as of March 31, 2026.
Navient’s Capital Distribution Activities
In the first quarter, the company paid $15 million in common stock dividends.
In the reported quarter, Navient repurchased shares of common stock for $23 million.
Our Take on NAVI
Navient has been an eminent portfolio holder of private education loans. Its diversified business segments are likely to support revenue growth. The strategic actions undertaken to control expenses are expected to support financials in the upcoming period. The company’s first-quarter results benefited from lower expenses and a modest decline in provisions. However, weaker NII remains a near-term concern.
Navient Corporation Price, Consensus and EPS Surprise
Navient Corporation price-consensus-eps-surprise-chart | Navient Corporation Quote
NAVI’s Zacks Rank
Currently, NAVI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Navient’s Peers
Ally Financial (ALLY - Free Report) reported first-quarter 2026 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
Results of ALLY primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Also, lower expenses were a tailwind. An increase in loan and deposit balances further supported the results. However, a rise in provisions was a headwind.
Enova International, Inc. (ENVA - Free Report) reported first-quarter 2026 adjusted earnings per share of $3.87, which increased from $2.98 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.66.
ENVA’s results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind.