Ally Financial (NYSE:ALLY) Issues Earnings Results, Beats Estimates By $0.08 EPS

22 Jan 2026, 13:38 by Kim Johansen · The Markets Daily

Ally Financial (NYSE:ALLY – Get Free Report) announced its quarterly earnings results on Wednesday. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.08, FiscalAI reports. Ally Financial had a return on equity of 9.96% and a net margin of 8.10%.The business had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.15 billion. During the same quarter in the prior year, the company earned $0.78 earnings per share. The company’s quarterly revenue was up 4.8% on a year-over-year basis.

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

Ally reported a strong 2025: adjusted EPS $3.81 (+62% YoY), core ROTCE 10.4% (up ~300 bps), adjusted net revenue $8.5B, and fully phased-in CET1 up ~120 bps, signaling material improvement in profitability and capital.
Retail auto and corporate finance growth is driving performance—loans up ~5% in 2025, retail auto originations and application volume at record levels, and full-year retail auto NCOs fell below 2% (1.97%), supporting the path to mid-teens returns.
Management guided 2026 NIM to 3.6%–3.7% with an expectation to reach the upper‑threes over time, but warned of near‑term quarter-to-quarter choppiness (Q1 slight decline) driven by early beta and some lease residual pressures.
Capital actions: Ally authorized a $2 billion open‑ended share repurchase program (repurchased $24M so far) while continuing to build capital toward a ~9% fully phased‑in CET1 target and prioritizing organic growth and the dividend.
Near‑term risks include lease residual losses (notably on certain plug‑in hybrids after EV tax credit changes and an OEM recall), sensitivity to used vehicle values and the labor market, and management’s decision to keep retail auto reserves steady given macro uncertainty.

Ally Financial Stock Performance

Ally Financial stock opened at $42.37 on Thursday. The firm’s 50 day simple moving average is $43.31 and its 200 day simple moving average is $41.11. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.31. Ally Financial has a 1-year low of $29.52 and a 1-year high of $47.27. The firm has a market capitalization of $13.05 billion, a PE ratio of 25.52, a price-to-earnings-growth ratio of 0.21 and a beta of 1.17.

Ally Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, February 2nd. Ally Financial’s dividend payout ratio (DPR) is presently 72.29%.

Institutional Trading of Ally Financial

Institutional investors and hedge funds have recently modified their holdings of the business. Larson Financial Group LLC increased its position in shares of Ally Financial by 67.0% in the third quarter. Larson Financial Group LLC now owns 1,072 shares of the financial services provider’s stock worth $42,000 after purchasing an additional 430 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Ally Financial by 374.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,477 shares of the financial services provider’s stock worth $58,000 after buying an additional 1,166 shares in the last quarter. NewEdge Advisors LLC increased its holdings in shares of Ally Financial by 22.8% in the 1st quarter. NewEdge Advisors LLC now owns 2,235 shares of the financial services provider’s stock worth $82,000 after buying an additional 415 shares during the last quarter. Triumph Capital Management purchased a new stake in shares of Ally Financial during the 3rd quarter valued at $112,000. Finally, Parallel Advisors LLC lifted its holdings in shares of Ally Financial by 21.0% during the 3rd quarter. Parallel Advisors LLC now owns 3,585 shares of the financial services provider’s stock worth $141,000 after acquiring an additional 621 shares during the last quarter. Hedge funds and other institutional investors own 88.76% of the company’s stock.

Key Ally Financial News

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

Positive Sentiment: Quarterly beat and revenue growth: Ally reported Q4 EPS of $1.09 vs. the $1.02 consensus and revenue of $2.17B (up ~4.8% YoY), showing underlying earnings power this quarter. MarketBeat Q4 release
Positive Sentiment: Financing revenue and profit growth: Coverage highlights that financing revenue drove higher profit in the quarter, supporting near-term profitability. MarketWatch article
Positive Sentiment: Shareholder returns increased: Management authorized a $2.0B share buyback and declared a $0.30 quarterly dividend, boosting capital return that should support EPS and investor confidence. MSN buyback article | PR Newswire dividend release
Neutral Sentiment: Full quarter disclosure and materials available: The company released its 4Q/2025 results, slide deck and earnings call transcript for investors to dig into loan mix, margin drivers and credit metrics. Press release / slide deck | Earnings call transcript
Neutral Sentiment: Key metrics vs. estimates: Analysts note the beat but urge scrutiny of NIM, credit trends and capital ratios as inputs for 2026 forecasts. Zacks analysis
Negative Sentiment: Auto-finance weakness and margin miss are the main near-term drags: Coverage highlights investor concern that auto lending softened and reported margins fell short of earlier guidance — the primary reason shares are trading lower despite the beat. Investing.com article | Bloomberg margin story
Negative Sentiment: Capital allocation and capital ratio concerns: Analysts downgraded the stock to Hold after the stock rally, citing faster capital returns (the $2B buyback) while pro forma CET1 fell to a low ~8.3%, increasing capital risk if credit or funding conditions worsen. Seeking Alpha downgrade note
Negative Sentiment: Management flagging economic risks: Management and coverage warn of potential macro pressure ahead that could weigh on auto volumes, losses and margin outlook. American Banker article

Analysts Set New Price Targets

A number of brokerages have commented on ALLY. UBS Group set a $48.00 price target on shares of Ally Financial in a research note on Monday, January 12th. Royal Bank Of Canada restated an “outperform” rating and issued a $52.00 target price on shares of Ally Financial in a report on Monday, January 12th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $55.00 price target on shares of Ally Financial in a research report on Tuesday, January 6th. Wells Fargo & Company raised Ally Financial from a “hold” rating to an “overweight” rating in a report on Wednesday, December 17th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ally Financial in a research report on Monday, December 29th. Twelve investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Ally Financial currently has a consensus rating of “Moderate Buy” and an average price target of $49.44.

Get Our Latest Report on Ally Financial

Ally Financial declared that its board has approved a share repurchase plan on Wednesday, December 10th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the financial services provider to purchase up to 15.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

About Ally Financial

(Get Free Report)

Ally Financial Inc is a leading digital financial services company headquartered in Detroit, Michigan. The company offers a comprehensive suite of banking, lending, and insurance products designed for retail and commercial customers. Through its online-only platform, Ally Bank provides checking and savings accounts, certificates of deposit, money market accounts, and home mortgages, emphasizing competitive rates and user-friendly mobile and web experiences.

In addition to its banking operations, Ally Financial is a major player in automotive financing and leasing.