Ally Financial (NYSE:ALLY) Announces Earnings Results

Ally Financial (NYSE:ALLY) released its earnings results on Tuesday. The financial services provider reported $1.34 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.01, FiscalAI reports. Ally Financial had a return on equity of 12.11% and a net margin of 16.84%. The business had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.31 billion. During the same quarter last year, the firm posted $1.15 earnings per share. The business’s revenue was up 6.1% compared to the same quarter last year.

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 1.9%

ALLY stock opened at $38.70 on Thursday. The company’s 50-day simple moving average is $40.45 and its 200-day simple moving average is $42.67. The company has a quick ratio of 0.92, a current ratio of 0.94 and a debt-to-equity ratio of 1.45. Ally Financial has a 52-week low of $35.92 and a 52-week high of $47.29. The firm has a market cap of $11.77 billion, a P/E ratio of 7.99, a PEG ratio of 0.29 and a beta of 1.11.

Ally Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Monday, November 2nd will be paid a $0.35 dividend. The ex-dividend date is Monday, November 2nd. This represents a $1.40 annualized dividend and a dividend yield of 3.6%. This is an increase from Ally Financial’s previous quarterly dividend of $0.30. Ally Financial’s dividend payout ratio (DPR) is presently 28.30%.

Wall Street Analyst Weigh In

Several analysts have issued reports on ALLY shares. Raymond James Financial dropped their target price 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. Royal Bank Of Canada cut their price target on Ally Financial from $55.00 to $50.00 and set an “outperform” rating on the stock in a report on Friday, October 9th. Citigroup reduced their price target on Ally Financial from $58.00 to $50.00 and set a “buy” rating for the company in a research report on Friday, September 25th. Morgan Stanley restated an “equal weight” rating and set a $43.00 price objective (down from $55.00) on shares of Ally Financial in a research note on Monday, October 12th. Finally, UBS Group decreased their price objective on Ally Financial from $54.00 to $50.00 and set a “buy” rating for the company in a research note on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $48.21.

Insider Buying and Selling

In related news, insider Stephanie Richard sold 5,000 shares of Ally Financial stock in a transaction 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 sale, the insider owned 88,927 shares of the company’s stock, valued at approximately $3,933,241.21. This trade represents a 5.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.46% of the company’s stock.

Key Ally Financial News

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

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. Ally reported adjusted earnings of $1.34 per share, ahead of the roughly $1.32–$1.33 consensus, while revenue rose 6.1% year over year to $2.35 billion. Earnings also increased from $1.15 per share in the prior-year quarter. Ally Financial reports third quarter 2026 financial results
• Positive Sentiment: Management raised shareholder returns and maintained growth targets. Ally increased its dividend by 17%, while projecting full-year average earning-asset growth of 5%–6%. The company also expects full-year net interest margin of 3.6%–3.65%. Ally Reports Q3 Earnings, Raises Dividend 17%
• Positive Sentiment: Some analysts see meaningful upside. JPMorgan raised its price target to $44 and maintained an Overweight rating. TD Cowen retained a Buy rating despite reducing its target to $52. Commentary also highlighted core ROTCE of 13.1%, stable retail-auto charge-offs within guidance, buybacks below tangible book value, and continued tangible-book growth. Ally Financial: Q3 Delivered On the Three Things I Said I’d Watch
• Neutral Sentiment: Analyst views remain mixed. While JPMorgan is constructive, Barclays lowered its target to $48 and assigned Equal Weight, signaling reduced conviction even though the target remains above the current market level.
• Negative Sentiment: Credit costs and auto delinquencies are investor concerns. Provisions for loan losses increased, and auto delinquencies rose alongside loan originations. Evercore ISI downgraded ALLY to In Line from Outperform, citing net interest margin pressure and credit-cost risk. Ally Financial cut to hold at Evercore ISI

About Ally Financial

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.