Ally Financial Q3 adjusted revenue beats estimates

Ally Financial

20/10/2026 12:46

Overview
US digital bank and auto lender's Q3 adjusted revenue beat analyst expectations
Adjusted EPS for Q3 met analyst expectations
Provision for credit losses increased due to CECL reserve builds tied to asset growth

Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers
AUTO ASSET GROWTH – Auto Finance net financing revenue rose $15 mln yr/yr to $1.3 bln, driven by growth in retail and commercial auto assets
CREDIT RESERVE BUILDS – Provision for credit losses rose $114 mln yr/yr to $529 mln, primarily due to CECL reserve builds tied to asset growth
INSURANCE UNDERWRITING – Insurance core pre-tax income rose $23 mln yr/yr to $75 mln, primarily driven by higher underwriting income

Company press release: ID:nPn5SlJda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted Revenue
Beat
$2.35 bln
$2.30 bln (14 Analysts)
Q3 Adjusted EPS
Meet
$1.34
$1.34 (16 Analysts)
Q3 CET1 Capital Ratio
 
10.20%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Ally Financial Inc is $50.00, about 33% above its October 19 closing price of $37.59
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)