Navient Corp

Navient Corporation is taking significant steps to reduce costs and improve operating efficiency as it works to strengthen profitability. During the second quarter of 2026 earnings call, CEO Ed Bramson said the company had achieved a major structural reduction in fixed costs, reflecting progress made through its strategic transformation. As part of its Phase 2 strategy announced in November 2025, Navient outsourced loan servicing to MOHELA in 2024, sold its Healthcare Services and Government Services businesses in 2025, and reduced headcount by more than 85% from year-end 2023, with total workforce reductions expected to reach nearly 90% by the end of 2026. The company exceeded its $400 million expense-reduction target by December 2025 and generated an additional $21 million in savings during the first half of 2026, keeping full-year operating expenses on track to be $350 million or lower. Navient also classified $528 million of legacy private loans as held for sale in the second quarter and may classify additional portions of its $5.4 billion legacy portfolio for sale, which could further reduce operating costs.

Navient Corporation shares gained 4.8% after reporting second-quarter 2026 earnings per share of 29 cents, beating the Zacks Consensus Estimate of 19 cents. GAAP net income rose to $25 million from $14 million a year earlier, helped by a 15.8% decline in total expenses to $85 million and a drop in provision for loan losses to $26 million from $37 million. Net interest income fell 8.3% to $120 million, missing estimates, while other income decreased 18.2% to $27 million. The Consumer Lending segment net income increased 3.8% to $27 million, and private education refinance loan originations reached $735 million, though the Federal Education Loans segment net income declined 13.3% to $26 million amid a shrinking FFELP portfolio.