Toll Brothers (TOL) Q2 2026 Earnings
How Did TOL Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −1.03%.
Did TOL Beat Earnings? Q2 2026 Results
Yes. Toll Brothers reported Q2 2026 earnings of $2.72 a share on May 19, 2026, beating the $2.58 consensus estimate by 5.3%. Revenue was $2.5B against a $2.4B estimate.
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.
- 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
“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.”
Toll Brothers CEO, on the earnings call
What Was Toll Brothers's Outlook in Q2 2026?
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.
TOL YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.5B | $2.7B | −7.6% |
| Gross Profit | $604.9M | $705.4M | −14.3% |
| Operating Income | $346.6M | $449.7M | −22.9% |
| Net Income | $260.6M | $352.4M | −26.1% |
TOL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.