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Toll Brothers

TOL Q1 2026 Earnings

Reported Feb 17, 2026 at 4:49 PM ET · SEC Source

Q1 26 EPS

$2.19

BEAT +3.92%

Est. $2.11

Q1 26 Revenue

$2.15B

BEAT +15.65%

Est. $1.86B

vs S&P Since Q1 26

-19.7%

TRAILING MARKET

TOL -14.7% vs S&P +5.0%

Market Reaction

Did TOL Beat Earnings? Q1 2026 Results

Toll Brothers delivered a strong fiscal first quarter for 2026, posting diluted EPS of $2.19 against the $2.11 consensus estimate, a beat of 3.92%, while revenue surged 15.4% year-over-year to $2.15 billion, exceeding expectations by 15.65%. The head… Read more Toll Brothers delivered a strong fiscal first quarter for 2026, posting diluted EPS of $2.19 against the $2.11 consensus estimate, a beat of 3.92%, while revenue surged 15.4% year-over-year to $2.15 billion, exceeding expectations by 15.65%. The headline numbers were driven in meaningful part by the company's strategic exit from its Apartment Living multi-family business, which contributed a substantial $290.64 million in land sales and other revenue after Toll Brothers completed roughly half the sale of that portfolio to Kennedy Wilson for approximately $330 million in net cash proceeds. Home sales remained solid at $1.85 billion across 1,899 deliveries at an average price of $977,000, and net signed contracts climbed 3% in dollar terms to $2.38 billion. Management held its full fiscal year 2026 guidance steady, projecting 10,300 to 10,700 deliveries at average prices of $970,000 to $990,000, underscoring confidence in the luxury segment where the company faces limited national competition, a dynamic that has attracted fresh analyst attention and buy-rated coverage in recent weeks.

Key Takeaways

  • • Focus on luxury market and affluent customer base
  • • Broad geographic footprint across 60+ U.S. markets
  • • Balanced mix of build-to-order and spec homes
  • • Average delivered price increased to $977,000 from $924,600 year-over-year
  • • Average net signed contract price increased to $1,033,100 from $1,000,100 year-over-year
  • • Community count grew to 445 from 406 year-over-year
  • • Adjusted gross margin of 26.5% exceeded guidance by 25 basis points
  • • SG&A of 13.9% beat guidance by 30 basis points

TOL Forward Guidance & Outlook

Toll Brothers maintained its full fiscal year 2026 guidance. For Q2 FY2026, the company guides deliveries of 2,400-2,500 units at an average price of $975,000-$985,000, adjusted home sales gross margin of 25.50%, SG&A as a percentage of home sales revenues of 10.7%, 455 period-end communities, and a tax rate of 26.0%. For full fiscal year 2026, guidance includes 10,300-10,700 deliveries at $970,000-$990,000 average price, 26.00% adjusted home sales gross margin, 10.25% SG&A ratio, 480-490 period-end communities, $130 million in other income/unconsolidated entities/land sales gross margin, and a 25.5% tax rate. The company expects to grow community count at an annual pace of 8% to 10% in fiscal 2026 and beyond, supported by approximately 75,000 lots owned or controlled, and projects significant operating cash flows in fiscal 2026.

24/7 Wall St

TOL YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

TOL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“We are pleased with our first quarter results, as we met or exceeded guidance across nearly all metrics. We delivered 1,899 homes at an average price of $977,000, generating home sales revenues of $1.85 billion. Our adjusted gross margin was 26.5% in the quarter, 25 basis points better than guidance, and our SG&A expense, as a percentage of homebuilding revenues, was 13.9%, 30 basis points better than guidance. As a result, we earned $2.19 per diluted share in the quarter, a 25% increase compared to the first quarter of fiscal 2025. In addition, we signed 2,303 net contracts for $2.4 billion in the quarter, flat in units but up 3% in dollars year-over-year as our average sales price increased to $1,033,000.”

— Douglas C. Yearley, Jr., Q1 2026 Earnings Press Release

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