Ally Financial (ALLY) Q4 2025 Earnings
How Did ALLY Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −0.44%.
Did ALLY Beat Earnings? Q4 2025 Results
Yes. Ally Financial reported Q4 2025 earnings of $1.09 a share on Jan 21, 2026, beating the $1.02 consensus estimate by 6.5%. Revenue was $2.1B against a $2.1B estimate.
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%.
- 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
“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.”
Ally Financial CEO, on the earnings call
What Was Ally Financial's Outlook in Q4 2025?
For 2026, Ally guided NIM (ex. OID) of 3.60%–3.70% (vs. 3.47% in 2025), adjusted other revenue flat to up 5% YoY, retail auto NCO rate of 1.8%–2.0% (vs. 1.97% in 2025), consolidated NCO rate of 1.2%–1.4% (vs. 1.28% in 2025), adjusted noninterest expense up approximately 1%, average earning assets up 2%–4%, and an effective tax rate of 20%–22%. Management expressed confidence in achieving upper 3% NIM over time given structural balance sheet trends. Potential risks flagged include tariff-related impacts on vehicle part costs and used vehicle values, as well as labor market conditions.
ALLY YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.1B | $4.0B | −47.4% |
| Net Income | $300.0M | $108.0M | +177.8% |
| Operating Income | $386.0M | $175.0M | +120.6% |
ALLY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.