Ally Financial Inc. (NYSE:ALLY) reported first-quarter results on Friday, delivering stronger-than-expected earnings even as revenue came in slightly below forecasts.
The company posted adjusted earnings per share of $1.11, ahead of the $0.94 consensus estimate, while revenue totaled $2.1 billion, missing expectations of $2.14 billion.
Shares gained 2.53% in premarket trading as investors reacted positively to the upside in profitability.
Adjusted EPS surged 90% from $0.58 in the same period last year, while GAAP net income attributable to common shareholders reached $291 million, compared with a loss of $253 million a year earlier.
Net financing revenue rose by $111 million year-on-year to $1.6 billion, with net interest margin—excluding core original issue discount—expanding by 17 basis points to 3.52%. On a GAAP basis, total revenue increased 36% from the prior year.
“The first quarter marked a strong start to the year, reflecting the momentum we’ve established across our core franchises,” said Michael Rhodes. “Our results underscore the strength of our ’Focused. Forward.’ strategy and the disciplined execution behind it.”
During the quarter, Ally originated $11.5 billion in consumer auto loans, up 13% year-on-year, driven by a record 4.4 million applications.
Credit performance improved, with the retail auto net charge-off rate declining to 1.97%, down 15 basis points from a year earlier. The Corporate Finance segment generated a 26% return on equity, with its held-for-investment portfolio expanding to $13.7 billion.
Retail deposits reached $146.1 billion across 3.5 million customers, marking the company’s 68th consecutive quarter of customer growth.
Ally maintained a Common Equity Tier 1 ratio of 10.1%, up about 60 basis points year-on-year, and repurchased $147 million worth of shares during the period.
The board also approved a quarterly dividend of $0.30 per share for the second quarter of 2026, unchanged from the prior year.