Toast Q3 2026: Revenue Beats but EPS Misses a Seven-Quarter Win Streak
As seen on the 24/7 Wall St. homepage on November 3, 2026.
A seven-quarter run of earnings beats ended with a 22% miss, dragged down by $6 million in severance and a swing to tax expense, even as full-year adjusted EBITDA guidance rose to $840 million to $850 million. CFO Elena Gomez departs at year-end, with Michael Senno taking over January 1.
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Toast reported GAAP earnings per share of $0.29 for the third quarter of 2026, missing expectations of $0.37. That ended a seven-quarter streak of earnings beats stretching back to Q4 2024. Restructuring charges, a loss on warrant fair value and higher income tax expense dragged the bottom line below what analysts expected.
The revenue picture was considerably cleaner. Toast brought in $1.98 billion for the quarter, meeting expectations and growing 21% year over year, while operating income nearly doubled and net new restaurant locations kept climbing. Gross payment volume rose 20%.
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Despite the EPS stumble, management raised full-year adjusted EBITDA guidance to a range of $840 million to $850 million and guided Q4 2026 adjusted EBITDA higher as well. CEO Aman Narang attributed the momentum to recurring gross profit streams growing 27% and an expanding GAAP operating income margin, while pointing to the Fall Release of product updates as evidence of the company's push toward an agentic platform that takes on restaurant management tasks autonomously.
The quarter's most consequential non-financial development was a CFO transition. Elena Gomez will step down at year-end after five and a half years, during which Narang said the business scaled roughly six times since its 2021 IPO. Michael Senno will assume the CFO role on January 1. Leadership transitions of this kind often attract investor scrutiny regardless of operating performance, and the timing alongside an earnings miss gives the market two things to weigh simultaneously heading into Q4.
Mentioned: TOST