The EPS miss and elevated provision overshadowed otherwise solid revenue growth and margin expansion. Watch for further deterioration in Auto Finance credit trends (NCOs at 1.89%, delinquencies up 6 bps YoY) and whether the higher provision persists into Q4. The dividend increase and buyback signal management confidence, but the core auto lending business faces headwinds from rising charge-offs and reserve builds.
Price Chart
Executive Summary
Ally Financial reported Q3 2026 GAAP EPS of $1.30 (Adjusted EPS $1.34), a 10% YoY increase, on GAAP total net revenue of $2.33B (+8% YoY). The adjusted EPS of $1.34 missed the consensus estimate of $1.37 by -2.2%, while revenue of $2.33B was slightly below the $2.34B consensus. The miss was driven by a higher provision for credit losses ($529M, +$114M YoY) and a decline in Auto Finance pre-tax income (-$84M YoY), partially offset by strong Insurance and Corporate & Other results. Management revised its 2026 NIM outlook to 3.60%-3.65% and guided consolidated NCOs toward the low end of 1.2%-1.3%, signaling cautious optimism on credit trends.
Key Financial Metrics
Key Facts
- GAAP EPS $1.30 vs $1.18 YoY (+10%); Adjusted EPS $1.34 vs $1.15 YoY (+16%)
- Adjusted EPS $1.34 missed consensus $1.37 by -2.2%
- GAAP total net revenue $2.33B vs $2.17B YoY (+8%)
- Provision for credit losses $529M, up $114M YoY (+27%)
- Auto Finance pre-tax income $337M, down $84M YoY (-20%)
- Insurance pre-tax income $80M, flat YoY; Core pre-tax income $75M, up $23M YoY
- Corporate Finance pre-tax income $98M, up $3M YoY
- NIM ex. OID 3.66%, up 11 bps YoY
- CET1 ratio 10.2%; executed $178M in share repurchases during Q3
- Dividend raised to $0.35/share for Q4 2026 from $0.30
- 2026 guidance: NIM 3.60%-3.65%, consolidated NCOs tracking toward low-end of 1.2%-1.3%
Financial Impact
Adjusted EPS miss of -2.2% vs consensus; provision up $114M YoY; Auto Finance pre-tax income down $84M YoY
Risk Factors
- Rising retail auto net charge-offs (1.89%, up 1 bps YoY) and delinquencies (4.96%, up 6 bps YoY)
- Higher provision expense ($529M) driven by CECL reserve builds on asset growth
- Auto Finance pre-tax income declined 20% YoY, pressured by higher provision and expenses
- Macroeconomic uncertainty and potential tariff impacts on vehicle demand and values
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-425698 |
| Document: d116845dex993.htm | 0001193125-26-425698 |
| Document: d116845dex992.htm | 0001193125-26-425698 |
| Document: d116845d8k.htm | 0001193125-26-425698 |
| Document: 0001193125-26-425698-index-headers.html | 0001193125-26-425698 |
| Document: 0001193125-26-425698-index.html | 0001193125-26-425698 |
| Document: 0001193125-26-425698.txt | 0001193125-26-425698 |
| 8-K Data (Synthetic) | 0001193125-26-425698 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | Institutional Cluster | $39.06 $38.81 | ▲ +0.64% | ▲ +1.35% | $38.81 (+0.64%) |
Oct 20, 2026 6d ago | Press Release | $37.97 $38.69 | ▲ +1.90% | ▲ +1.37% | $38.81 (+2.21%) |
Oct 20, 2026 6d ago | 8-K | $37.97 $38.69 | ▼ −1.90% | ▼ −1.37% | $38.81 (−2.21%) |
Oct 19, 2026 7d ago | Press Release | $37.97 $38.69 | ▲ +1.90% | ▲ +1.37% | $38.81 (+2.21%) |
Sep 17, 2026 5w ago | Press Release | $40.60 $40.00 | ▼ −1.48% | ▼ −1.61% | $38.81 (−4.41%) |
Sep 16, 2026 5w ago | 8-K | $40.60 $40.00 | ▼ −1.48% | ▼ −1.36% | $38.81 (−4.41%) |
Sep 10, 2026 6w ago | Court Ruling | $42.07 $41.94 | ▼ −0.31% | ▲ +0.14% | $38.81 (−7.75%) |
Sep 9, 2026 6w ago | 424B5 | $41.83 $42.17 | ▲ +0.81% | ▲ +1.41% | $38.81 (−7.22%) |
Sep 4, 2026 7w ago | Court Ruling | $42.28 $41.83 | ▼ −1.06% | ▼ −0.60% | $38.81 (−8.21%) |
Aug 25, 2026 8w ago | Court Ruling | $42.54 $42.74 | ▲ +0.47% | ▼ −0.19% | $38.81 (−8.77%) |
US Market Status
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