Key Takeaways Capital One trades at 9.42X forward earnings, above industry and key peers like Ally and OneMain.COF's credit card net revenues rose 40.5% in 2025, boosted by Discover and loan growth.Capital One faces margin risks from rate caps, rising costs and recent earnings estimate cuts.At a glance, Capital One Financial Corporation (COF) stock appears to trade at a premium when compared with the industry at large. The company’s current forward 12-month price/earnings (P/E) ratio of 9.42 is above the in ...

Workday (NasdaqGS:WDAY) Q4 2026 Earnings call February 24, 2026 04:30 PM ET Company ParticipantsAneel Bhusri - CEOBrad Zelnick - Managing DirectorGerrit Kazmaier - President, Product and TechnologyJustin Furby - Vice President of Investor RelationsKeith Weiss - Managing DirectorKirk Materne - Managing Director and Equity ResearchMark Murphy - Executive DirectorMichael Turrin - Managing DirectorRaimo Lenschow - Managing DirectorRob Enslin - President, Chief Commercial OfficerZane Rowe - CFOConference Call Pa ...

Core Insights - SoFi Technologies and Ally Financial reported contrasting fourth-quarter earnings, with SoFi beating estimates but experiencing a significant drop in share price, while Ally missed estimates but saw a smaller decline in its stock price [2][7] SoFi Technologies - SoFi achieved $1.03 billion in revenue and $0.13 EPS, exceeding expectations [3][5] - The company added 1 million members in Q4, bringing the total to 13.7 million [3] - Home loan originations doubled, and personal loans grew by 43% [3] - Fee-based revenue reached $443 million, a 53% increase, driven by crypto trading and the launch of SoFiUSD stablecoin [3] - CEO Anthony Noto projected $4.655 billion in revenue for 2026, indicating a 30% growth rate and $0.60 EPS [3][5] - SoFi's strategy focuses on becoming a comprehensive financial platform, with risks tied to execution and potential slowdowns in crypto adoption or loan demand [5] Ally Financial - Ally reported $2.12 billion in revenue, missing the $2.19 billion estimate, and EPS of $0.95, falling short of the $1.05 consensus [4][5] - Net income surged 178% year-over-year to $300 million, with a record $43.7 billion in consumer auto loans originated for the year [4] - The company resumed its $2 billion share buyback program and maintained a quarterly dividend of $0.30, resulting in a 2.9% dividend yield [4][6] - Ally's strategy is centered on the stabilization of auto lending as interest rates normalize, with a cautious outlook and no guidance for 2026 [6]

Core Insights - SoFi Technologies and Ally Financial have shown contrasting market reactions following their Q4 earnings reports, with SoFi's shares down 25% year-to-date despite beating estimates, while Ally's shares are down only 9% after missing estimates [1] Group 1: Financial Performance - SoFi reported Q4 revenue of $1.03 billion and EPS of $0.13, exceeding expectations [1] - Ally's Q4 revenue was $2.12 billion, missing the $2.19 billion estimate, with an EPS of $0.95 falling short of the $1.05 consensus [1] - Ally's net income surged 178% year-over-year to $300 million, while SoFi added 1 million members in Q4, bringing its total to 13.7 million [1] Group 2: Growth and Strategy - SoFi aims for a revenue target of $4.655 billion by 2026, indicating a growth rate of 30%, focusing on crypto and lending scale [1] - Ally's strategy revolves around stabilizing auto lending as interest rates normalize, with a record $43.7 billion in consumer auto loans originated for the year [1] - SoFi's fee-based revenue increased by 53% to $443 million, driven by crypto trading and the launch of SoFiUSD stablecoin [1] Group 3: Valuation and Market Sentiment - SoFi has a high P/E ratio of 50, which requires flawless execution to justify, while Ally's P/E ratio is 17, indicating a more stable valuation [1] - Analyst target prices suggest limited near-term upside for SoFi at $26.87, while Ally's target of $52.76 implies a 29% upside [1] - Retail sentiment around SoFi is showing bullish positioning, particularly in options markets following its earnings report [1]

Core Insights - Ally Financial demonstrated solid operational performance in 2025, with expectations for continued growth into 2026, particularly in net interest margin and customer acquisition [5][6][12] Financial Performance - Retail auto credit losses were reported at 1.97%, with a flat expense structure and an increase in the CET1 ratio [1] - The net interest margin was around 350 basis points at year-end 2025, with expectations for a full-year margin of 360 to 370 basis points [6] - Ally's retail auto net charge-off guidance for 2026 is projected between 1.8% and 2.0%, with current trends indicating a midpoint expectation [9] Business Segments - The company focuses on three key operating businesses: Dealer Financial Services, insurance, and Corporate Finance, supported by a strong deposits franchise [4] - In Corporate Finance, Ally maintains a low average annualized loss rate of about 30 basis points since going public in 2014, while the asset base has grown [2] - Ally's insurance segment is expected to grow, although not linearly, due to various external factors impacting performance [10] Strategic Focus - Ally's strategic shift emphasizes strengthening core franchises and enhancing dealer relationships, which has led to record application flow and written premiums in insurance [3][4] - The company aims to leverage structural tailwinds for margin expansion, particularly through higher-yielding loans replacing lower-yielding securities [7] Customer and Deposit Growth - Ally has achieved 67 consecutive quarters of customer growth since its inception in 2009, indicating a strong customer acquisition strategy [1] - Deposit balances were flat in 2025, but the company anticipates that asset growth will typically lead to deposit growth in 2026, supported by alternative funding sources [12] Capital Management - Ally expects sufficient capital generation to support loan growth, dividends, and buybacks, with a goal of improving the CET1 ratio to the "nines over time" [13] - The company views buybacks as part of a balanced approach to capital management, considering valuation and strategic objectives [13]

Core Insights - In 2025, Capital One Financial Corporation (COF) experienced both ongoing stress and some stabilization in credit quality across its major lending portfolios, particularly in the credit card segment, which faced elevated net charge-off (NCO) and delinquency rates early in the year [1] Credit Quality Performance - By late 2025, credit quality indicators showed improvement, with the overall credit card NCO rate declining to 5.09% from 5.88% in 2024, and the domestic credit card NCO rate decreasing by 79 basis points year over year to 5.12% [2] - The 30-plus day performing delinquency rate in the Domestic Credit Card segment fell to 3.99% in 2025, down from 4.53% in 2024 [2] - The improvement in credit quality was attributed to better performance in key loan portfolios and strategic risk management shifts, leading to declining NCO and delinquency rates [3] Acquisition Impact - The acquisition of Discover Financial contributed significantly to Capital One's credit quality improvement by integrating a portfolio with historically lower loss and delinquency trends, thus diversifying the loan mix [4] Industry Comparison - At the end of 2025, Ally Financial reported non-performing loans of $1.37 billion, down 8.1% from 2024, with an NCO rate decline to 1.28% from 1.48% [6] - OneMain's provision for finance receivable losses decreased by 2.1% year over year in 2025, while its allowance ratio increased to 11.54% from 11.48% in 2024 [8] Stock Performance and Valuation - Capital One's shares have decreased by 1.2% over the past six months, contrasting with the industry's growth of 1.9% [9] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 3.1% for 2026 and 22.8% for 2027, with revised earnings estimates for 2026 at $20.21 and for 2027 at $24.81 [11] - Currently, Capital One trades at a 12-month forward price-to-earnings (P/E) ratio of 10.33X, above the industry average of 9.27X [12]

sponsors and middle-market companies. For more information, please visit [www.ally.com].Ally Bank, Member FDIC. For more information and disclosures about Ally, visit [https://www.ally.com/#disclosures].For further images and news on Ally, please visit [http://media.ally.com].CONTACTMegan Rivers; Ally Communications [[email protected]]SOURCE Ally Financial## 21%[more press release views with Request a Demo]## Also from this source### TIME and Ally Financial Name 2026 Dealer of the Year[Ally Financial Inc. ( ...

Core Insights - OneMain Holdings (OMF) reported fourth-quarter 2025 adjusted earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.55, and reflecting a 37.1% increase year-over-year [1] - The company's net income on a GAAP basis was $204 million, a significant rise of 61.9% from the prior-year quarter, with adjusted earnings for 2025 at $6.66 per share, surpassing estimates and increasing 36.2% from the previous year [2] Financial Performance - Quarterly net interest income (NII) increased by 8.3% year-over-year to $1.09 billion, driven by higher net finance receivables and improved yield [3] - Total other revenues reached $193 million, up 20.6% from the prior-year quarter, attributed to an increase in nearly all fee income components [3] - Total other expenses rose by 2.7% year-over-year to $495 million, primarily due to higher operating expenses [4] Credit Quality - The provision for finance receivable losses was $542 million, up 3.6% from the prior-year quarter, with net charge-offs of $492 million, an increase of 6.3% year-over-year [5] - The company reported 30-89-day delinquencies of $803 million, up 8.1% from the prior-year quarter, with an allowance ratio of 11.54%, slightly up from 11.48% in the previous year [5] Balance Sheet and Share Repurchase - As of December 31, 2025, net finance receivables amounted to $24.8 billion, a 1.5% increase from the prior quarter, while long-term debt rose by 1.6% to $22.7 billion [6] - In the reported quarter, OneMain Holdings repurchased 1.2 million shares of common stock for $70 million [7] Strategic Outlook - Rising expenses due to higher compensation and operating costs are expected to impact profitability, alongside weakening asset quality as a near-term challenge [8] - The company is focusing on growing credit card and auto finance loans, along with strategic acquisitions, which are anticipated to support its financial performance [9]

Core Points - Dave Wright, president of Dave Wright Nissan Subaru, was awarded the 2026 TIME Dealer of the Year at the 109th National Automotive Dealers Association (NADA) Show, marking the 57th year of the award and Ally Financial's 15th year as the exclusive sponsor [1][4] - The award recognizes industry excellence and community service, with Wright being noted for his leadership and commitment to community impact, having been recognized as one of the Best Dealerships to Work For 12 times [2][3] - Ally Financial will provide grants totaling nearly $1 million to charitable organizations selected by nominees, finalists, and the winner, including $10,000 to Wright's chosen charity and $5,000 to each finalist's nonprofit [6] Company and Industry Summary - Ally Financial Inc. is a financial services company with a leading position in auto financing and the largest all-digital bank in the nation, committed to supporting customers and communities [9] - The TIME Dealer of the Year award is a prestigious recognition in the automotive industry, celebrating dealers who demonstrate excellence and community commitment [5] - The selection process for the award involves a panel from the Tauber Institute for Global Operations at the University of Michigan, which chooses finalists from each NADA region and a national winner [5]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Pay With Spire, a pay-by-bank provider offering merchants lower payments costs, on Thursday announced it has hired a former Fiserv executive, Jennifer LaClair, as its new chief executive. LaClair, who was Fiserv’s head of merchant solutions until December, said in an interview Wednesday that Spire sits “at an inflection point” in its growth as mercha ...