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Toll Brothers

TOL Q2 2026 Earnings

Reported May 19, 2026 at 4:42 PM ET · SEC Source

Q2 26 EPS

$2.72

BEAT +5.33%

Est. $2.58

Q2 26 Revenue

$2.53B

BEAT +4.60%

Est. $2.42B

vs S&P Since Q2 26

+11.1%

BEATING MARKET

TOL +8.9% vs S&P -2.1%

Market Reaction

Did TOL Beat Earnings? Q2 2026 Results

Toll Brothers posted a stronger-than-expected fiscal second quarter, with earnings per share of $2.72 beating the $2.58 consensus estimate by 5.33% and revenue of $2.53 billion clearing Wall Street's $2.42 billion forecast by 4.60%, even as the top l… Read more Toll Brothers posted a stronger-than-expected fiscal second quarter, with earnings per share of $2.72 beating the $2.58 consensus estimate by 5.33% and revenue of $2.53 billion clearing Wall Street's $2.42 billion forecast by 4.60%, even as the top line slipped 7.6% from a year ago. The primary engine behind the beat was disciplined execution against the company's own guidance, with home sales revenues coming in roughly $110 million above the midpoint of guidance and adjusted gross margin of 26.2% exceeding guidance by 70 basis points, partially offsetting a year-over-year compression in home sales gross margin to 23.9% from 26.0% and a sharp rise in inventory impairments to $32.48 million from $9.80 million. Net signed contracts rose 7% in units and 8% in dollars, offering a constructive demand signal even as analysts had widely anticipated year-over-year earnings declines heading into the print. Looking ahead, Toll Brothers raised its full-year FY 2026 delivery guidance to 10,400 to 10,700 units at an average price of $985,000 to $1,000,000, while the company's 76,800 controlled lots underpin projected growth of 8% to 10% in 2027 and beyond.

Key Takeaways

  • • Exceeded home sales revenue guidance by approximately $110 million at midpoint
  • • Adjusted gross margin of 26.2% exceeded guidance by 70 basis points
  • • SG&A as a percentage of home sales revenues of 10.3% was 40 basis points better than guidance
  • • Net signed contracts up 7% in units and 8% in dollars year-over-year
  • • Community count increased 9% year-over-year to 459 selling communities
  • • Average delivered price of $1,008,600 per home

TOL Forward Guidance & Outlook

Toll Brothers raised its full-year FY 2026 guidance across all key homebuilding metrics. For Q3 FY 2026, the company guides deliveries of 2,600–2,700 units at an average delivered price of $965,000–$985,000, adjusted home sales gross margin of 25.25%, SG&A as a percentage of home sales revenues of 10.0%, period-end community count of 475, other income/unconsolidated entities/land sales gross margin of $5 million, and a tax rate of 26.0%. For full fiscal year 2026, the company guides deliveries of 10,400–10,700 units at an average delivered price of $985,000–$1,000,000, adjusted home sales gross margin of 26.10%, SG&A at 10.10% of home sales revenues, period-end community count of 480–490, other income/unconsolidated entities/land sales gross margin of $120 million, and a tax rate of 25.5%. The company controls sufficient land for continued 8%–10% growth in 2027 and beyond.

24/7 Wall St

TOL YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

TOL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“In the second quarter, we once again successfully navigated a challenging market and produced strong results. We delivered 2,491 homes at an average price of $1,009,000 in the quarter, generating $2.5 billion of home sales revenues, or approximately $110 million above the midpoint of our guidance. Our adjusted gross margin was 26.2%, or 70 basis points above guidance, and our SG&A expense, as a percentage of home sales revenues, was 10.3% or 40 basis points better than guidance. In addition, orders were up 7% in units and 8% in dollars year-over-year. Based on our year-to-date performance, we are raising our full year guidance across all key home building metrics.”

— Karl K. Mistry, Q2 2026 Earnings Press Release

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