Ally Financial Inc. (ALLY) Reports 62% EPS Growth in Q4 2025 with $2 Billion Buyback Authorization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Strong Performance: Ally Financial reported an adjusted EPS of $3.81 for Q4 2025, reflecting a 62% year-over-year increase, which underscores the company's successful strategic execution and boosts investor confidence.
- Loan Growth: Retail auto and corporate finance loans grew by 5% in 2025, with consumer loan originations reaching $43.7 billion at a 9.7% yield, indicating the company's strengthening position in the high credit quality customer segment.
- Capital Management: The CFO reported net financing revenue of $1.6 billion, up 6% year-over-year, while announcing a $2 billion share repurchase authorization, demonstrating the company's confidence in future growth and flexibility in capital allocation.
- Outlook: Management expects a net interest margin between 3.6% and 3.7% for 2026, with retail auto net charge-offs projected between 1.8% and 2%, reflecting a cautiously optimistic view of the market environment and ongoing risk management capabilities.
Analyst Views on ALLY
Wall Street analysts forecast ALLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALLY is 53.71 USD with a low forecast of 48.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 42.420
Low
48.00
Averages
53.71
High
70.00
Current: 42.420
Low
48.00
Averages
53.71
High
70.00
About ALLY
Ally Financial Inc. is a financial services company. The Company’s segments include Automotive Finance operations, Insurance operations, and Corporate Finance operations. The Automotive Finance operations segment is engaged in providing automotive financing services to consumers, automotive dealers and retailers, companies, and municipalities. Its Insurance operations segment operates as a complementary automotive-focused business, offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. Its Corporate Finance operations segment provides senior secured asset-based and leveraged cash flow loans to U.S.-based middle-market companies, with a focus on businesses owned by private equity sponsors. The Company also includes a robust corporate finance business that offers capital for equity sponsors and middle-market companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
