Fannie Mae (OTCMKTS:FNMA) Announces Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Fannie Mae (OTCMKTS:FNMA) released its earnings results on Wednesday. The financial services provider reported $0.60 earnings per share for the quarter, missing the consensus estimate of $0.68 by ($0.08), Zacks reports. The company had revenue of $7.33 billion for the quarter, compared to analysts’ expectations of $7.33 billion. Fannie Mae had a net margin of 2.61% and a negative return on equity of 37.47%.

Here are the key takeaways from Fannie Mae’s conference call:

• Fannie Mae reported strong profitability and capital growth — Q4 net income $3.5 billion, full-year net income $14.4 billion, 14 consecutive years of profitability and year-end net worth of $109 billion.
• Multifamily momentum — guarantee book grew $35 billion to $535 billion, fourth-quarter net income $850 million and full-year multifamily net income $2.9 billion (the highest in four years), with full-year acquisitions at a five-year high.
• Credit concerns — single-family serious delinquencies rose 4 basis points (partly seasonal/forbearance) and the company increased the single-family allowance by $208 million; multifamily delinquencies and net charge-offs have increased and management expects multifamily delinquency levels could rise in 2026.
• Mixed expense and capital dynamics — quarterly administrative expenses rose due to severance, consulting and occupancy even as full-year non-interest expense fell $141 million after ~1,200 workforce reductions; risk-weighted assets increased 3% and Fannie continues to rely on CRT to manage CET1 requirements.

Fannie Mae Stock Up 0.5%

FNMA opened at $8.31 on Thursday. The company has a market capitalization of $9.62 billion, a PE ratio of 4.49 and a beta of 1.73. The firm has a 50-day simple moving average of $9.97 and a two-hundred day simple moving average of $10.76. Fannie Mae has a 52 week low of $4.83 and a 52 week high of $15.99.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Zacks Research raised Fannie Mae from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. BTIG Research assumed coverage on shares of Fannie Mae in a report on Monday, January 26th. They set a “buy” rating and a $20.00 price target on the stock. B. Riley Financial raised shares of Fannie Mae to a “hold” rating in a research note on Wednesday, October 29th. Finally, Wedbush initiated coverage on shares of Fannie Mae in a research report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $14.30.

Key Fannie Mae News

Here are the key news stories impacting Fannie Mae this week:

• Positive Sentiment: Republican lawmakers are drafting legislation to end the conservatorship of Fannie Mae and Freddie Mac, a structural change that could materially alter FNMA’s capital framework and shareholder value if passed or if it advances the privatization timeline. Republicans Crafting Bill To End Conservatorship of Fannie Mae and Freddie Mac
• Neutral Sentiment: FHFA moved to remove certain Biden-era fair housing oversight for Fannie and Freddie — a regulatory shift that changes the operating environment but whose financial impact on FNMA earnings is uncertain and will depend on implementation. FHFA scraps Biden-era fair housing oversight for Fannie and Freddie
• Neutral Sentiment: Management emphasized continued capital build and operational-efficiency programs to navigate headwinds — signaling focus on strengthening the balance sheet but also potential near-term cost/capital trade-offs. Fannie Mae outlines continued capital build and operational efficiency while navigating market headwinds
• Negative Sentiment: Fannie reported Q4 EPS of $0.60, missing consensus (~$0.68) and showing profit decline versus the prior year; investors worry this weak print and low profitability metrics (negative ROE) could weigh on near-term performance. Fannie Mae 4Q Profit Falls Amid Stagnant Housing Market
• Negative Sentiment: Analysis shows g?fee (guarantee fee) revenue gains were more than offset by higher loss provisions and valuation impacts, which pressured results and raise concerns about credit trends and forward earnings power. Fannie Mae g-fee gains outweighed by loss provisions, valuations
• Neutral Sentiment: Investors can review the Q4 prepared remarks and slide deck for management’s detail on capital, credit outlook and strategy — useful for assessing whether operational plans will restore margins. Federal National Mortgage Association (FNMA) Q4 2025 Earnings Call Prepared Remarks Transcript

About Fannie Mae

The Federal National Mortgage Association, commonly known as Fannie Mae (OTCMKTS:FNMA), is a government-sponsored enterprise established by Congress in 1938 as part of the New Deal to support the U.S. housing market. Headquartered in Washington, DC, Fannie Mae’s mission is to promote liquidity, stability and affordability in the mortgage market. The company operates by purchasing residential mortgage loans from financial institutions, pooling them into mortgage-backed securities (MBS), and providing guarantees to investors against borrower default.

In its core business, Fannie Mae works with mortgage lenders across the United States—including banks, credit unions and mortgage finance companies—to ensure a steady flow of capital for homebuyers and homeowners seeking refinancing.