Ally Financial (NYSE:ALLY) Posts Earnings Results, Beats Estimates By $0.01 EPS

Ally Financial (NYSE:ALLY) issued its quarterly earnings results on Tuesday. The financial services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.01, FiscalAI reports. The company had revenue of $2.35 billion for the quarter, compared to analysts’ expectations of $2.31 billion. Ally Financial had a return on equity of 11.75% and a net margin of 16.75%. The firm’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same period in the prior year, the firm earned $1.15 earnings per share.

Here are the key takeaways from Ally Financial’s conference call:

• Strong third-quarter performance: Adjusted EPS rose 16% year over year to $1.34, while adjusted net revenue increased 9% to $2.3 billion. Flat adjusted non-interest expense generated 9% operating leverage.
• Ally raised its average earning asset growth outlook to 5%-6% from 3%-5%, driven by 10% growth in auto originations and 40% growth in corporate finance loans. Corporate Finance delivered a 22% ROE, while digital bank customers increased 7% to 3.6 million.
• Provision expense increased $114 million year over year, including an approximately $90 million CECL reserve build tied to retail auto growth. Retail auto net charge-offs rose sequentially to 189 basis points, and late-2025 and early-2026 vintages are showing elevated early delinquencies.
• Lease economics remain under pressure, with a $16 million loss on lease terminations during the quarter due to weaker Stellantis auction prices and residual values. Management expects this headwind to persist into the fourth quarter before easing through 2027.
• Management increased the quarterly dividend to $0.35, its first increase since 2022, and has repurchased nearly $500 million of shares over the past year. CET1 stood at 10.2%, supported in part by credit-risk-transfer transactions, while full-year NIM is now expected at 3.60%-3.65% and fourth-quarter NIM around 3.7%.

Ally Financial Trading Up 1.2%

NYSE:ALLY opened at $38.04 on Wednesday. The company’s 50 day moving average price is $40.57 and its 200-day moving average price is $42.68. Ally Financial has a 52 week low of $35.92 and a 52 week high of $47.29. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.26. The stock has a market cap of $11.57 billion, a price-to-earnings ratio of 8.97, a PEG ratio of 0.28 and a beta of 1.11.

Ally Financial Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Monday, November 2nd will be issued a dividend of $0.35 per share. The ex-dividend date is Monday, November 2nd. This is a positive change from Ally Financial’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.7%. Ally Financial’s dividend payout ratio is currently 28.30%.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Truist Financial dropped their target price on shares of Ally Financial from $51.00 to $50.00 and set a “buy” rating on the stock in a report on Wednesday, September 23rd. TD Cowen decreased their target price on shares of Ally Financial from $55.00 to $54.00 and set a “buy” rating for the company in a research note on Tuesday, October 6th. Bank of America raised their target price on shares of Ally Financial from $52.00 to $53.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Weiss Ratings reiterated a “buy (b)” rating on shares of Ally Financial in a report on Friday, September 18th. Finally, Raymond James Financial dropped their price target on Ally Financial from $55.00 to $52.00 and set a “strong-buy” rating on the stock in a research report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $50.00.

Ally Financial News Roundup

Here are the key news stories impacting Ally Financial this week:

• Positive Sentiment: Q3 results beat expectations: Ally reported adjusted EPS of $1.34, ahead of the roughly $1.32–$1.33 consensus, while revenue of $2.35 billion increased 6.1% year over year and exceeded estimates. EPS also rose from $1.15 in the prior-year quarter. Ally Financial reports third quarter 2026 financial results
• Positive Sentiment: Dividend increased 17%: The quarterly common-stock dividend was raised to $0.35 per share from $0.30, equivalent to $1.40 annually and a yield of approximately 3.7%. The increase signals management’s confidence in capital generation and may improve income-focused investor demand. Ally Financial declares dividend
• Positive Sentiment: Profitability and growth outlook improved: Core return on tangible common equity reached 13.1%, retail auto charge-offs remained within guidance at 1.89%, and management raised its average earning-asset growth outlook to 5%–6%. Full-year net interest margin is expected at 3.6%–3.65%. Ally NIM and earning-asset outlook
• Neutral Sentiment: Valuation remains supportive but execution matters: An investor analysis noted that Ally trades below tangible book value, with book value growth and share repurchases potentially providing support. The benefit depends on continued credit discipline and stable funding conditions. Ally Financial Q3 investment analysis
• Negative Sentiment: Credit costs increased: Provision expense rose despite the earnings beat, indicating that Ally is reserving more for potential loan losses. This could pressure future earnings if consumer credit deteriorates further. Ally Q3 earnings and credit costs
• Negative Sentiment: Auto delinquencies are rising: Delinquencies increased alongside loan originations, reinforcing concerns about consumer stress and the risk that higher growth could come with weaker underwriting or elevated charge-offs. Ally auto delinquencies

Insider Buying and Selling at Ally Financial

In related news, insider Stephanie Richard sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total value of $221,150.00. Following the completion of the transaction, the insider directly owned 88,927 shares in the company, valued at $3,933,241.21. The trade was a 5.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.46% of the stock is owned by company insiders.

Ally Financial Company Profile

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan, and traded on the New York Stock Exchange under the symbol ALLY. The company primarily serves consumers, automotive dealers and businesses in the United States through online and branchless banking and financing platforms.

Ally’s automotive finance business provides retail installment loans and leases to consumers and floorplan financing and other services to automotive dealers. Its consumer banking operations, conducted through Ally Bank, offer deposit products such as savings accounts, money market accounts and certificates of deposit, along with consumer lending products.

The company also provides credit cards and commercial financing, and offers investment and brokerage services through Ally Invest.