Toll Brothers Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.03%.
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 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
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.
TOL YoY Financials
TOL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.