EarningsQ3 2026 Earnings Report
MX:ALLY1 Q3 2026 EPS Results
Actual EPS$25.04
Consensus EPS$24.94
Beat/MissBeat by +$0.09
One Year Ago EPS$21.49
MX:ALLY1 Q3 2026 Revenue Results
Actual Revenue$77.56B
Expected Revenue$43.15B
Beat/MissBeat by +$34.40B
YoY Revenue Growth+5.87%
Earnings Announcement Details
QuarterQ3 2026
Date10/20/2026
TimeBefore Open
Conference CallTuesday, October 20, 2026
MX:ALLY1 Upcoming Earnings
Ally Financial's next earnings date is estimated for January 15, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ALLY1 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Ally reported double-digit adjusted EPS growth, higher revenue, operating leverage, strong growth in retail auto and corporate finance, continued digital bank customer gains, improved capital returns, and raised average earning asset growth guidance. The principal challenges were higher CECL provisions, elevated auto delinquencies in certain vintages, lease residual-value pressure, and ongoing rate and consumer-affordability risks, but management said credit performance, the full-year outlook, and the longer-term path toward higher returns remain in line with expectations.Company Guidance
Strong Third-Quarter Earnings and Revenue Growth
Third-quarter adjusted EPS was $1.34, up 16% year over year. Adjusted net revenue was $2.3 billion, up 9% year over year, while adjusted noninterest expense was relatively flat, producing 9% operating leverage.
Improved Returns and Portfolio Progress Over Two Years
Over the past two years, retail auto and corporate finance assets grew nearly 15%, core ROTC increased from 5% to 13%, and retail net charge-offs declined by more than 30 basis points. Ally also returned meaningful capital to shareholders while building its capital base.
Strong Capital Position and Shareholder Returns
CET1 was 10.2%, up approximately 10 basis points year over year. Ally repurchased nearly $500 million of shares over the past year, announced a quarterly dividend of $0.35 for the fourth quarter—the first increase since 2022—and adjusted tangible book value per share was $41, up 5% over the past year.
Auto Application and Origination Momentum
Ally decisioned 4.8 million auto applications, up 20% year over year, resulting in $12.9 billion of consumer originations, up 10% year over year. Strong application flow allowed the company to remain selective in underwriting and focus on risk-adjusted returns.
Higher Auto Origination Yields
Third-quarter originated auto yield was 9.44%, up approximately 35 basis points quarter over quarter. Ally exited the quarter with originated yields in the upper 9% range after taking pricing actions throughout the quarter.
Auto Pass-Through and Fee Income Growth
Ally generated a second consecutive quarter with more than $1 billion of off-balance-sheet pass-through originations. Auto other revenue increased 20% year over year, supported by growth in the service portfolio and accretive fee income.
Insurance Earnings and Conquest Momentum
Insurance core pretax income was $75 million, up $23 million year over year. Total written premiums were $388 million, up $3 million year over year, insurance losses were $135 million, down $6 million year over year, and conquest activity increased 75% year over year. Year-to-date insurance ROE was approximately 30%.
Corporate Finance Growth and Credit Performance
Corporate finance generated $98 million of pretax income and a 22% ROE. The portfolio reached $15.8 billion, up 40% over the past year, with nonaccrual loans and criticized assets at historic lows. Annual losses have remained below 30 basis points since Ally's IPO, and 100% of the portfolio consists of first-lien senior secured floating-rate loans.
Digital Bank Customer Growth
The digital bank reached 3.6 million customers, up 7% year over year, marking the 70th consecutive quarter of customer growth. Management said customer growth continues to outpace industry averages, with particular engagement from Millennial and Gen Z customers.
Net Financing Revenue and Margin Expansion
Net financing revenue excluding OID was $1.8 billion, up 10% year over year, driven by core portfolio growth and lower funding costs. Net interest margin excluding OID was 3.66%, up 3 basis points quarter over quarter. Management cited a 34-basis-point increase in NIM from the third quarter of 2025 and a 67-basis-point increase in risk-adjusted margin over the past two years.
Earning Asset Growth and Balance-Sheet Remixing
Average earning assets increased 7% year over year, with ending retail auto assets up 8% and corporate finance loans up 40%. Growth in higher-return assets is replacing runoff of lower-yielding mortgages and mortgage securities, which management said provides a structural tailwind to NIM over time.
Deposit and Funding Progress
Deposit customers grew for the 70th consecutive quarter and were up 7% year over year. Cost of funds decreased 3 basis points quarter over quarter, driven by the full impact of second-quarter deposit pricing actions.
Updated Full-Year Outlook
Ally expects full-year NIM between 3.6% and 3.65%, with fourth-quarter NIM around 3.7%. Other revenue is expected to increase 2% to 4%, adjusted noninterest expense is expected to be flat to up 1%, average earning asset growth is now expected at 5% to 6% year over year versus the prior 3% to 5% guide, and the full-year tax rate remains expected at 20% to 22%.
Capital Risk Transfer and Off-Balance-Sheet Execution
Ally completed its second credit risk transfer transaction of 2026, generating more than 25 basis points of CET1 at issuance. Management described it as the largest North American retail auto credit risk transfer it was aware of in the third quarter. Pass-through volume exceeded $250 million during the quarter and generated origination and servicing fees without adding the volume to the balance sheet.
Favorable Competitive Position
Management said it had not observed measurable deterioration in retail auto competition and viewed the competitive dynamic as favorable. Strong dealer relationships continued to support application flow, pricing actions, and the ability to optimize risk-adjusted returns. Management also said changing rates were constructive for pricing.
Expense Discipline Alongside Continued Investment
Management reported that expenses were roughly flat year over year while corporate finance loans increased 40%, auto originations increased 10%, and consumer bank customers increased 7%. Ally also increased spending on marketing and technology and plans to continue funding investments needed to protect and enable the business in an AI-first environment.
Deposit Beta Discipline and Customer Proposition
Management expects deposit beta to remain in the 60% to 70% range as rates move higher, consistent with the recent rate-reduction cycle in which Ally achieved a beta of approximately 70%. The company said its digital experience, product offering, brand, and competitive pricing continue to support customer growth.
MX:ALLY1 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed