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.
TOL YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
TOL Revenue by Segment
With YoY comparisons, source: SEC Filings
“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
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
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $2.11 | $2.19 | +3.92% | $2.15B | +15.65% |
| Q4 25 MISS FY | $4.89 | $4.58 | -6.34% | $3.42B | +3.17% |
| FY Full Year | $13.82 | $13.49 | -2.36% | $10.97B | +0.97% |
| Q3 25 | — | $3.73 | — | $2.95B | — |
| Q2 25 BEAT | $2.86 | $3.50 | +22.36% | $2.74B | +9.92% |