Fannie Mae reported first‑quarter 2026 results, posting net income of $3.7 billion, up 5% from the $3.5 billion earned in Q4 2025 and 2% from the $3.66 billion earned in Q1 2025. Net revenues were $7.3 billion, a slight decline from $7.33 billion in Q4 2025 but a 3% increase from $7.09 billion in Q1 2025. The company’s net worth rose to $112.7 billion, reflecting continued growth in its guaranty book and operating efficiency gains.
Revenue composition remained anchored by guaranty fee income, which held steady at roughly 81% of net revenues. Net interest income totaled $7.20 billion, while fee and other income added $82 million. The mix shift contributed to a modest compression of the net interest margin to 0.67% from 0.68% in the prior quarter, but the sharp decline in non‑interest expenses—down 8% QoQ and 16% YoY—helped preserve overall profitability.
Operating leverage improved markedly, with the administrative expense ratio falling to 10.23% from 12.56% in Q4 2025. The reduction in administrative costs, driven by targeted cost‑control initiatives, offset the margin compression and supported the 5% rise in net income. The company also reported a 2% year‑over‑year increase in net income, underscoring the effectiveness of its cost‑management program.
Management highlighted the strength of the single‑family segment, noting that loan acquisitions reached $99 billion, the highest level in more than three years. CEO Peter Akwaboah said, "We opened the year strong, posting first quarter net income of $3.7 billion, up 5% quarter‑over‑quarter and up 2% year‑over‑year, with stable net revenues of $7.3 billion. This performance drove our net worth to $112.7 billion and reflects the sustained health of our guaranteed business, the discipline of our execution, and the strength of our balance sheet." CFO Chryssa C. Halley added, "Our first quarter results underscore the durability of our business model and the strong credit profile of our guaranty book. Net revenues in the quarter were stable at $7.3 billion, administrative expenses were lower, and our growing net worth put Fannie Mae in a solid position to serve the housing market and fulfill our mission."
The results also beat revenue expectations, with $7.28 billion in net revenues surpassing the Visible Alpha consensus of $7.39 billion by $30 million. While the company did not report a beat in earnings per share, the net income growth and margin improvement signal robust execution. Analysts noted that the company’s focus on cost discipline and its strong single‑family performance provide a solid foundation, though elevated multifamily delinquencies and regulatory capital requirements remain headwinds.
Looking ahead, Fannie Mae’s continued capital accumulation—reflected in its rising net worth—positions it to meet the FHFA’s Enterprise Regulatory Capital Framework requirements. The company’s emphasis on technology‑enabled solutions and streamlined mortgage processes aims to maintain its role as the go‑to partner for lenders, while its disciplined approach to operating efficiency should sustain profitability even as it navigates multifamily credit challenges.
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