Ally Financial's stock surged 6.83% during intraday trading on Friday, following the release of its first-quarter fiscal 2026 financial results that significantly exceeded analyst expectations.

The digital bank and auto lender reported adjusted earnings per share of $1.11, beating the FactSet consensus estimate of $0.93 and representing a 90% increase year-over-year. The company posted net income attributable to common shareholders of $291 million, reversing a loss from the same period last year. GAAP total net revenue climbed 36% to $2.1 billion, while consumer auto originations increased 13% to $11.5 billion.

Key drivers behind the strong performance included growth in consumer auto financing with higher portfolio yields, improved insurance results driven by lower weather losses and higher investment income, and cost reductions primarily due to the sale of the credit card business. The company also reported strong financial metrics with core return on tangible common equity of 11.1% and a common equity tier 1 ratio of 10.1%, up 60 basis points year-over-year.