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.
TOL YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
TOL Revenue by Segment
With YoY comparisons, source: SEC Filings
“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
TOL Earnings Trends
TOL vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TOL EPS Trend
Earnings per share: estimate vs actual
TOL Revenue Trend
Quarterly revenue: estimate vs actual
TOL Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $2.58 | $2.72 | +5.33% | $2.53B | +4.60% |
| Q1 26 BEAT | $2.11 | $2.19 | +3.92% | $2.15B | +15.65% |
| Q4 25 MISS FY | $4.88 | $4.58 | -6.05% | $3.42B | +3.18% |
| FY Full Year | $13.82 | $13.49 | -2.36% | $10.97B | +0.97% |
| Q3 25 BEAT | $3.60 | $3.73 | +3.75% | $2.95B | +3.10% |
| Q2 25 BEAT | $2.86 | $3.50 | +22.36% | $2.74B | +9.92% |