Ally Financial (NYSE: $ALLY), an American bank holding company incorporated in Delaware, released its Q3 fiscal 2025 results on Friday, October 17, 2025. The company reported an earnings and revenue beat that caused the stock to climb higher.
All Financial Q3 2025 Results
For the third quarter, Ally Financial reported an adjusted EPS of $1.15, beating forecasts of $1.00. Its revenue came in at $2.17 billion, beating forecasts of $2.12 billion. Following the results, ALLY shares closed higher, reflecting investor optimism.
Q3 EPS was up 166% year over year, while net revenue was up 3% year over year to $2.2 billion. The growth was spurred by an expanded net interest margin, which was up 3.55%, and strong consumer origination of $11.7 billion.
Looking at segment performance, the Auto Finance segment reported $421 million in pretax income compared to $355 million a year ago. Meanwhile, the insurance segment reported $79 million compared to $102 million a year ago. Finally, the Corporate Finance segment reported $95 million compared to $105 million a year ago.
Ally Financial announced a $0.30 per share quarterly common dividend, unchanged year over year, and a 3.12% yield. The company has offered dividend payments for 10 consecutive years, which shows consistent shareholder return even during market fluctuations. For the fourth quarter, the company announced a dividend of $.30 per share.
Share Performance
All Financial (ALLY) closed 3.56% higher on Friday, October 17, 2025 at $39.82 per share, signaling investor optimism. The stock has a P/E ratio of 38.29, which shows investors have priced in stronger growth expectations. Year-to-date, the stock is up 10.58%, while over the past 12 months, it has risen 11.10%.
Ally Financial Outlook
Ally Financial expects a net interest margin of 3.45% – 3.50% for fiscal 2025. It also expects low single-digit growth in earning assets and foresees net charge-offs of around 2% for the full year.
Earnings Call Highlights
Ally Financial ended the quarter with $141.8 billion in retail deposits, a $0.4 billion increase year over year, and a $1.3 billion decline quarter over quarter. Its digital bank segment closed the quarter with $142 billion in balances, which reinforces its position as the biggest all-digital bank in the US.
During the quarter, the bank added 44 thousand net new deposit customers, bringing the total to 3.4 million. Millennials and younger customers continue to make up most of its customer base.
The company stated that it continues to be under pressure from macroeconomic uncertainties. This includes potential weakening in the employment sector. It also noted that there was rising competition in the auto finance sector, which could impact its growth and margins.
Is Ally Financial A Buy in October 2025?
All Financial is a leader in the automotive finance and insurance sectors. Its results signal resilience in its core business segments, which include insurance, Automotive finance, and Corporate Finance. The positive EPS appears to be the main driver of investors’ confidence.
While it is under pressure, it is still reporting EPS growth and return on tangible common equity. With the company holding the enviable position of the biggest all-digital bank in the US, and with most of its customer base comprising millennials and younger customers, its long-term growth prospects look promising. Consequently, adding ALLY to your long-term investment portfolio could be a great strategy.
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