Ally Financial (ALLY) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Ally Financial reported $2.12 billion in revenue for Q4 2025, a year-over-year increase of 4.8%, with an EPS of $1.09 compared to $0.78 a year ago, indicating a positive trend in earnings performance [1] - The revenue fell short of the Zacks Consensus Estimate by 0.19%, while the EPS exceeded the consensus estimate by 8.15% [1] Financial Performance Metrics - Net interest margin was reported at 3.5%, matching the average estimate from analysts [4] - The efficiency ratio was 58.9%, higher than the average estimate of 55.9% [4] - Net charge-offs to average finance receivables and loans outstanding were 1.3%, in line with analyst estimates [4] - Total interest-earning assets averaged $182.44 billion, slightly above the estimated $181.96 billion [4] - Insurance premiums and service revenue earned were $366 million, slightly below the estimate of $364.22 million, representing a year-over-year decrease of 0.5% [4] - Net financing revenue was reported at $1.6 billion, reflecting a year-over-year increase of 5.9% [4] - Total other revenue was $525 million, slightly below the estimate of $529.7 million, with a year-over-year increase of 1.6% [4] - Total financing revenue and other interest income was $3.42 billion, matching the estimate but showing a year-over-year decrease of 3.2% [4] - Other income, net of losses, was $167 million, exceeding the estimate of $149.94 million, with no year-over-year change [4] - Revenue from insurance operations for net financing was $36 million, above the estimate of $33.21 million, with a year-over-year increase of 16.1% [4] - Revenue from insurance operations for other revenue was $390 million, exceeding the estimate of $361.95 million, with a year-over-year increase of 12.1% [4] - Revenue from corporate finance operations for net financing was $111 million, below the estimate of $120.4 million, reflecting a year-over-year decrease of 3.5% [4] Stock Performance - Shares of Ally Financial have returned -8.6% over the past month, compared to the Zacks S&P 500 composite's -0.4% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]