Q1 26 EPS

$1.11

BEAT +17.93%

Est. $0.94

Q1 26 Revenue

$2.10B

MISS 1.68%

Est. $2.14B

vs S&P Since Q1 26

+5.2%

BEATING MARKET

ALLY +8.5% vs S&P +3.3%

Market Reaction

Did ALLY Beat Earnings? Q1 2026 Results

Ally Financial posted a strong first quarter in 2026, swinging to GAAP net income of $291 million attributable to common shareholders compared to a $253 million loss a year ago, as adjusted EPS of $1.11 topped the $0.94 consensus estimate by 17.93%, … Read more Ally Financial posted a strong first quarter in 2026, swinging to GAAP net income of $291 million attributable to common shareholders compared to a $253 million loss a year ago, as adjusted EPS of $1.11 topped the $0.94 consensus estimate by 17.93%, extending the company's streak of beating EPS expectations to four consecutive quarters. Revenue of $2.10 billion came in slightly below the $2.14 billion consensus by 1.68% and fell 38.7% year over year, largely reflecting the April 2025 sale of the Credit Card business, which also stripped out a meaningful cost base and helped drive the profitability turnaround. The most telling operational signal was in the auto franchise, where a record 4.4 million consumer applications supported $11.50 billion in originations, even as retail auto net charge-offs improved 15 basis points year over year to 1.97%. Net interest margin ex-OID reached 3.52%, up 17 basis points year over year, and management kept its full-year NIM target of 3.60% to 3.70% intact, while flagging trade policy uncertainty and macroeconomic volatility as key watch items heading into the remainder of 2026.

Key Takeaways

  • Record 4.4 million consumer auto applications driving $11.5 billion in originations, up 13% YoY despite lower industry sales
  • Net interest margin ex. OID of 3.52%, up 17 bps YoY, supported by higher-yielding auto loan vintages
  • Average retail deposit rate declined 49 bps YoY to 3.26%, reducing funding costs
  • Noninterest expense decreased $399 million YoY driven by Credit Card sale and lower weather losses
  • Retail auto net charge-off rate declined 15 bps YoY to 1.97% with four consecutive quarters of delinquency improvement
  • Insurance weather losses down $42 million YoY from historically elevated prior-year period
  • Corporate Finance ROE of 26% with no new non-performing loans and criticized assets near historic lows

ALLY Forward Guidance & Outlook

Ally maintained its 2026 financial guidance unchanged: NIM ex. OID of 3.60%–3.70% (based on 3/31 forward curve with no 2026 rate cuts), adjusted other revenue flat to up 5% YoY, retail auto NCO rate of 1.8%–2.0%, consolidated NCO rate of 1.2%–1.4%, adjusted noninterest expense up 1% YoY, average earning assets up 2%–4%, and effective tax rate of 20%–22%. Management expressed confidence in achieving upper-3% NIM over time given structural balance sheet trends. Consumer remains resilient but macroeconomic and geopolitical environment remain watch items, with tariff impacts and trade policy uncertainty specifically cited as risk factors.

24/7 Wall St

ALLY YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

ALLY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“The first quarter marked a strong start to the year, reflecting the momentum we've established across our core franchises. Our results underscore the strength of our 'Focused. Forward.' strategy and the disciplined execution behind it. This approach is driving sustained value for our customers and shareholders.”

— Michael Rhodes, Q1 2026 Earnings Press Release