10-Q · May 29, 2026
Toll Brothers reported Q2 2026 results showing a revenue decrease to $2.53 billion, down 8% YoY, with net income falling 26% to $260.6 million. EPS of $2.72 exceeded estimates of $2.58, indicating mixed performance…
Earnings analysis · 10-Q
TOL earnings analysis
Filed August 28, 2026 · Our reading of the company's report
The latest report
Toll Brothers delivered a Q3 FY2026 revenue and EPS beat, with $2.659 billion of revenue and $2.97 diluted EPS, but both revenue and EPS declined year over year from $2.95 billion and $3.73, respectively. Management…
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Toll Brothers delivered a Q3 FY2026 revenue and EPS beat, with $2.659 billion of revenue and $2.97 diluted EPS, but both revenue and EPS declined year over year from $2.95 billion and $3.73, respectively. Management reaffirmed its FY2026 outlook, including approximately $10.5 billion of home sales revenue and 10,500-10,600 deliveries, while increasing planned share repurchases to $700 million. The balance-sheet risk focus is interest-rate sensitivity: $814.662 million of variable-rate debt would add approximately $8.2 million of annual interest expense for each 1% rate increase. The filing states there were no material changes to the risk factors from the 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.97
What stood out
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Revenue Beat Estimates, Down Year Over Year
Q3 revenue was $2.659 billion, up approximately 5.1% from $2.53 billion in Q2 but down approximately 9.9% from $2.95 billion in the prior-year quarter. Revenue exceeded the $2.614 billion consensus estimate by approximately 1.7%.
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EPS Beat Estimates Despite YoY Decline
Diluted EPS was $2.97, up from $2.72 in Q2 but down from $3.73 in Q3 2025. EPS exceeded the $2.92 consensus estimate by approximately 1.7%.
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FY2026 Outlook Reaffirmed
Management reaffirmed approximately $10.5 billion of FY2026 home sales revenue and 10,500-10,600 deliveries, alongside a 26.1% adjusted home sales gross-margin outlook.
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Share Repurchases Continued
The company repurchased 1.391 million shares during the quarter at an average price of $148.10 per share, with 6.721 million shares remaining available under the program at July 31, 2026.
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Dividend Capacity Remains Substantial
The company paid $0.77 per share in cash dividends during the first nine months of FY2026; debt agreements permitted approximately $4.09 billion of dividends at July 31, 2026.
What to watch
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Floating-Rate Debt Creates Interest Exposure
The filing reports fixed-rate debt of $1.951 billion and variable-rate debt of $814.662 million. Holding variable-rate debt constant, a 1% increase in interest rates would increase annual interest expense by approximately $8.2 million.
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Lower Year-Over-Year Earnings Base
Q3 revenue declined approximately 9.9% year over year, from $2.95 billion to $2.659 billion, while diluted EPS declined approximately 20.4%, from $3.73 to $2.97.
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Continued Capital Deployment
The company repurchased 1.391 million shares during the quarter at average prices ranging from $137.11 to $152.18 per share, and 6.721 million shares remained authorized for repurchase, representing continued capital deployment exposure if operating conditions weaken.
Management's outlook
Management reaffirmed FY2026 outlook of approximately $10.5 billion of home sales revenue, 10,500-10,600 deliveries, 26.1% adjusted home sales gross margin, and 480-490 communities. Planned FY2026 share repurchases were increased to $700 million from $650 million.
Earlier filings 4
10-Q · February 27, 2026
Toll Brothers reported Q1 revenue of $2,145,627,000 and diluted EPS of $2.19, beating consensus and growing 15.4% versus Q1 last year. Revenue strength was driven by a large increase in land sales and other revenue…
10-K · December 19, 2025
Toll Brothers positions itself as a broad luxury and affordable-luxury homebuilder with an expanded geographic footprint (operating in 24 states + D.C.) and a large pipeline: backlog of $5.49 billion (4,647 homes) at…
10-Q · August 28, 2025
Toll Brothers reported quarterly revenue of $2,945,117 (amounts in thousands) for the three months ended July 31, 2025, up from $2,727,944 in the prior-year quarter, and diluted EPS of $3.73 versus $3.60 a year ago.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.