ALLY

Ally Financial reported Q3 2026 adjusted EPS of $1.34, up 16% year-over-year, driven by a strategic shift toward higher-yielding auto and corporate loans while letting lower-yielding mortgages run off. The bank processed 4.8 million auto applications (up 20% YoY) and grew corporate finance loans 40% YoY to $15.8 billion. Management raised its quarterly dividend to $0.35 per share and maintained a strong CET1 ratio of 10.2%, signaling confidence in sustainable profitability and shareholder returns.

Ally Financial is expected to report Q3 2026 earnings of $1.34 per share (up 16.5% YoY) and revenues of $2.29 billion (up 5.6% YoY) on October 20. However, recent analyst estimate revisions have turned negative, with consensus EPS estimates revised 4.1% lower over the last 30 days.

The company carries a Zacks Rank #4 and an Earnings ESP of -1.50%, making it difficult to predict an earnings beat. While Ally has beaten estimates 3 of the last 4 quarters, current indicators suggest caution.

Capital One reported Q3 2026 adjusted earnings of $6.69 per share, beating consensus estimates of $5.45, with a 12% year-over-year increase. Net interest income rose 4% to $12.89 billion and net interest margin expanded 5 basis points to 8.41%.

However, the company faced headwinds from higher expenses (up 7%), increased provisions (up 7%), and sequential deposit declines. Credit quality improved with net charge-offs falling 10% year-over-year. Capital One carries a Zacks Rank #3 (Hold) rating.

Capital One's Q3 2026 earnings are expected to decline 8.4% year-over-year to $5.45 per share despite 4.9% revenue growth. While interchange fees are projected to surge 23.3% and non-interest income to grow 16.9%, weak consumer loan demand, higher credit loss provisions, increased marketing costs, and technology investments are expected to pressure profits. The company carries a Zacks Rank #3 (Hold) with a -0.02% Earnings ESP, suggesting low chances of beating consensus estimates.