Toll Brothers (TOL) Q3 2026 Earnings
Includes $39.6 million in joint venture impairments in (loss) income from unconsolidated entities, $17.7 million in pre-tax inventory impairments in home sales cost of revenues, and $10.1 million in land and other impairments in land sales cost of revenues
How Did TOL Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +0.58%.
Did TOL Beat Earnings? Q3 2026 Results
Yes. Toll Brothers reported Q3 2026 earnings of $2.97 a share on Aug 18, 2026, beating the $2.93 consensus estimate by 1.5%. Revenue was $2.7B against a $2.6B estimate.
Toll Brothers posted a narrow but clear beat in fiscal Q3 2026, with GAAP earnings of $2.97 per diluted share edging past the $2.93 consensus by 1.53%, even as the luxury homebuilder navigated what CEO Karl Mistry called a "challenging market." Revenue of $2.66 billion topped estimates by 1.56% but fell 9.7% from the year-ago quarter, with home deliveries slipping to 2,662 units from 2,959 and net income declining to $280.14 million from $369.62 million, weighed down by $39.59 million in joint venture impairments, $17.66 million in pre-tax inventory write-downs, and $10.05 million in land-related impairments, all reflected in the reported GAAP figures. The bright spot was demand: net signed contracts rose 5% year over year to $2.52 billion, with cancellation rates improving to 2.6% from 3.2%, suggesting buyers are still engaging with Toll's luxury offerings, including new community openings across markets like Tennessee and Nevada. Management reaffirmed full-year guidance of roughly $10.50 billion in home sales revenues and 10,500 to 10,600 deliveries, while lifting projected share repurchases for fiscal 2026 from $650 million to $700 million.
- Net signed contracts grew 5% year over year to $2.52 billion (2,508 units vs. 2,388)
- Community count increased to 471 from 420 a year ago
- Adjusted home sales gross margin of 25.6% exceeded guidance midpoint by 35 basis points
- Average delivered price per home rose to $996,400 from $973,600
- Cancellation rate improved to 2.6% of beginning backlog from 3.2%
“Toll Brothers delivered solid third quarter results in a challenging market. We exceeded the midpoint of our guidance with $2.65 billion of home sales revenues, delivering 2,662 homes at an average price of $996,400. Our adjusted gross margin was 25.6%, or 35 basis points above guidance, and we earned $2.97 per diluted share. We also grew net signed contracts by 5% year over year.”
Toll Brothers CEO, on the earnings call
What Is Toll Brothers's Outlook?
Toll Brothers reaffirmed all full-year FY 2026 guidance: approximately $10.5 billion in home sales revenues, 10,500–10,600 deliveries at an average price of $995,000–$1,000,000, adjusted home sales gross margin of 26.1%, SG&A at 10.1% of home sales revenues, 480–490 period-end communities, $120 million in other income/unconsolidated entities income/land gross margin, and a 25.2% tax rate. Fourth quarter guidance calls for 3,450–3,550 deliveries at an average price of $995,000–$1,005,000, adjusted gross margin of 26.0%, SG&A at 8.1% of home sales revenues, $30 million in other income, and a 26.0% tax rate. Community count is expected to grow 8%–10% in fiscal 2026 with similar growth projected for fiscal 2027 and beyond. The company increased its projected FY 2026 share repurchases from $650 million to $700 million.
TOL YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.7B | $2.9B | −9.7% |
| Gross Profit | $625.2M | $765.4M | −18.3% |
| Operating Income | $359.2M | $487.7M | −26.4% |
| Net Income | $280.1M | $369.6M | −24.2% |
TOL Revenue by Segment
When Does Toll Brothers Report Next?
Figures from SEC filings and company reports. Not investment advice.