Q4 25 EPS
$1.09
BEAT +6.54%
Est. $1.02
Q4 25 Revenue
$2.12B
MISS 0.94%
Est. $2.14B
vs S&P Since Q4 25
+3.2%
BEATING MARKET
ALLY +9.7% vs S&P +6.4%
Full Year 2025 Results
FY 25 EPS
$3.81
FY 25 Revenue
$7.91B
Market Reaction
Did ALLY Beat Earnings? Q4 2025 Results
Ally Financial capped a strong 2025 with a fourth-quarter earnings beat that extended its run to eight consecutive quarters of topping consensus EPS estimates, as improving credit quality and expanding margins offset a modest revenue shortfall. The c… Read more Ally Financial capped a strong 2025 with a fourth-quarter earnings beat that extended its run to eight consecutive quarters of topping consensus EPS estimates, as improving credit quality and expanding margins offset a modest revenue shortfall. The company posted adjusted EPS of $1.09, beating the $1.02 consensus estimate by 6.54%, while revenue of $2.12 billion came in just under the $2.14 billion consensus by 0.94%, and fell 47.4% year over year, largely reflecting the strategic exits from credit cards and mortgage originations. The single biggest driver of the earnings beat was a sharp improvement in credit quality, with the consolidated net charge-off rate falling to 1.34% from 1.59% a year ago, reducing provision expense by $70 million year over year. Net interest margin expanded 18 basis points to 3.48%, aided by lower deposit funding costs. Management's confidence in the recovery was underscored by a newly authorized $2 billion buyback program, with Ally guiding 2026 NIM to 3.60% to 3.70%, retail auto NCOs of 1.8% to 2.0%, and average earning asset growth of 2% to 4%.
Key Takeaways
- • Net interest margin expansion of 18 bps YoY to 3.48% driven by lower funding costs and higher-yielding originations
- • Retail auto NCO rate improved 20 bps YoY to 2.14%
- • Provision for credit losses decreased $70M YoY due to continued retail auto NCO improvement and Credit Card sale
- • Noninterest expense decreased $110M YoY primarily due to prior-year goodwill impairment on Credit Card
- • Consumer auto originations of $10.8B, up $0.6B YoY with record Q4 application volume of 3.8M
- • Average retail deposit rate declined 62 bps YoY to 3.35%
- • Disciplined deposit pricing and ongoing balance sheet optimization
ALLY YoY Financials
Q4 2025 vs Q4 2024, source: SEC Filings
ALLY Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our performance in 2025 reflects a meaningful step forward. Deliberate choices backed by disciplined execution enhanced the strength and resilience of our franchises and supported improved returns. We enter 2026 with a stronger foundation and momentum for continued progress.”
— Michael Rhodes, Q4 2025 Earnings Press Release
ALLY Earnings Trends
ALLY vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ALLY EPS Trend
Earnings per share: estimate vs actual
ALLY Revenue Trend
Quarterly revenue: estimate vs actual
ALLY Quarterly Results
10 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.94 | $1.11 | +17.93% | $2.10B | -1.68% |
| Q4 25 BEAT FY | $1.02 | $1.09 | +6.54% | $2.12B | -0.94% |
| FY Full Year | — | $3.81 | — | $7.91B | — |
| Q3 25 BEAT | $1.01 | $1.15 | +14.08% | $2.17B | +2.88% |
| Q2 25 BEAT | $0.80 | $0.99 | +23.86% | $2.08B | +2.20% |
| Q1 25 BEAT | $0.42 | $0.58 | +36.76% | $1.54B | -21.79% |
| Q4 24 BEAT FY | $0.57 | $0.78 | +36.53% | $2.03B | +0.08% |
| FY Full Year | $2.95 | $2.35 | -20.44% | $8.18B | +0.80% |
| Q3 24 BEAT | $0.53 | $0.95 | +79.25% | $2.10B | +3.59% |
| Q2 24 BEAT | $0.64 | $0.97 | +51.56% | $2.00B | -1.48% |
| Q1 24 BEAT | $0.33 | $0.45 | +36.36% | $1.99B | +1.48% |
| Q4 23 BEAT FY | $0.45 | $0.45 | +0.00% | $2.07B | +3.57% |
| FY Full Year | — | $3.05 | — | $8.21B | — |