The maintained guidance and $148M buyback provide a floor, but watch for rate sensitivity given the $149M instantaneous +100bp NFR sensitivity headwind. Monitor Q3 for continued NIM expansion and retail deposit cost trajectory.
Price Chart
Executive Summary
Ally Financial reported Q2 2026 GAAP EPS of $1.18, up 14% YoY, and Adjusted EPS of $1.21, up 22% YoY, on total net revenue of $2.286B (+10% YoY). The company maintained its 2026 guidance for NIM (ex. OID) of 3.60%-3.70% and consolidated NCOs of 1.2%-1.3%, while executing $148M in share repurchases and issuing $1.0B in preferred stock to redeem higher-cost Series B. Core pre-tax income rose 26% YoY to $527M, driven by record auto originations ($13.3B), expanding NIM (3.63% ex. OID), and strong Corporate Finance ROE of 32%, partially offset by higher noninterest expense and provision build from asset growth.
Key Financial Metrics
Key Facts
- GAAP EPS of $1.18 beat the prior year's $1.04 by 14% and Adjusted EPS of $1.21 beat by 22% YoY
- GAAP total net revenue of $2.286B was up 10% YoY; adjusted total net revenue of $2.276B was up 10% YoY
- Core pre-tax income of $527M was up 26% YoY; GAAP pre-tax income of $537M was up 23% YoY
- NIM ex. OID expanded 18 bps YoY to 3.63%; retail deposit costs fell 46 bps YoY to 3.12%
- Consumer auto originations of $13.3B were up 21% YoY from a record 4.6M applications
- Retail auto net charge-offs improved 18 bps YoY to 1.57%; 30+ day delinquencies improved 8 bps YoY to 4.80%
- Corporate Finance delivered 32% ROE with a $13.7B 100% first-lien portfolio and <1% non-accruals
- Executed $148M in share repurchases during the quarter ($295M YTD); CET1 ratio stable at 10.1%
- Issued $1.0B of fixed-rate reset perpetual preferred stock at 7.1% to support redemption of $1.35B Series B preferred
- 2026 guidance maintained: NIM ex. OID 3.60%-3.70%, consolidated NCOs 1.2%-1.3%, adjusted other revenue flat to +5% YoY
Financial Impact
GAAP EPS $1.18 vs $1.04 YoY (+14%); Adjusted EPS $1.21 vs $0.99 YoY (+22%); GAAP total net revenue $2.286B vs $2.082B YoY (+10%)
Risk Factors
- Net financing revenue sensitivity shows a -$149M impact from an instantaneous +100bp rate shock, indicating asset-sensitive balance sheet risk
- Noninterest expense rose $57M YoY to $1.319B, driven by higher servicing and compensation costs
- Provision for credit losses increased $46M YoY to $430M due to CECL reserve build from asset growth, which could accelerate if credit conditions deteriorate
- Auto Finance pre-tax income declined $62M YoY despite higher revenue, as provision and expense growth outpaced revenue gains
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-309539 |
| Document: d40046dex993.htm | 0001193125-26-309539 |
| Document: d40046dex992.htm | 0001193125-26-309539 |
| Document: d40046d8k.htm | 0001193125-26-309539 |
| Document: 0001193125-26-309539-index-headers.html | 0001193125-26-309539 |
| Document: 0001193125-26-309539-index.html | 0001193125-26-309539 |
| Document: 0001193125-26-309539.txt | 0001193125-26-309539 |
| 8-K Data (Synthetic) | 0001193125-26-309539 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | Institutional Cluster | $38.96 | awaiting T+1 | — | $39.17 (−0.55%) |
Oct 20, 2026 6d ago | Press Release | $37.97 $38.69 | ▲ +1.90% | ▲ +1.37% | $39.17 (+3.16%) |
Oct 20, 2026 6d ago | 8-K | $37.97 $38.69 | ▼ −1.90% | ▼ −1.37% | $39.17 (−3.16%) |
Oct 19, 2026 6d ago | Press Release | $37.97 $38.69 | ▲ +1.90% | ▲ +1.37% | $39.17 (+3.16%) |
Sep 17, 2026 5w ago | Press Release | $40.60 $40.00 | ▼ −1.48% | ▼ −1.61% | $39.17 (−3.52%) |
Sep 16, 2026 5w ago | 8-K | $40.60 $40.00 | ▼ −1.48% | ▼ −1.36% | $39.17 (−3.52%) |
Sep 10, 2026 6w ago | Court Ruling | $42.07 $41.94 | ▼ −0.31% | ▲ +0.14% | $39.17 (−6.89%) |
Sep 9, 2026 6w ago | 424B5 | $41.83 $42.17 | ▲ +0.81% | ▲ +1.41% | $39.17 (−6.36%) |
Sep 4, 2026 7w ago | Court Ruling | $42.28 $41.83 | ▼ −1.06% | ▼ −0.60% | $39.17 (−7.36%) |
Aug 25, 2026 8w ago | Court Ruling | $42.54 $42.74 | ▲ +0.47% | ▼ −0.19% | $39.17 (−7.92%) |
US Market Status
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