Toll Brothers (NYSE:TOL) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Toll Brothers (NYSE:TOL) announced its earnings results on Tuesday. The construction company reported $2.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.93 by $0.04, FiscalAI reports. The company had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.62 billion. Toll Brothers had a net margin of 11.14% and a return on equity of 14.27%. The firm’s quarterly revenue was down 9.7% compared to the same quarter last year. During the same period in the previous year, the business earned $3.73 earnings per share.

Toll Brothers Trading Up 4.0%

NYSE TOL opened at $148.50 on Thursday. The firm has a market cap of $13.88 billion, a PE ratio of 11.92, a price-to-earnings-growth ratio of 1.18 and a beta of 1.35. Toll Brothers has a 1-year low of $123.14 and a 1-year high of $168.36. The stock has a 50-day moving average of $152.00 and a 200-day moving average of $146.42. The company has a current ratio of 4.67, a quick ratio of 0.59 and a debt-to-equity ratio of 0.33.

Toll Brothers Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, July 10th. Toll Brothers’s payout ratio is 7.87%.

Toll Brothers News Summary

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Quarterly earnings and revenue beat expectations. Toll Brothers reported fiscal Q3 adjusted diluted EPS of $2.97 versus the $2.93 consensus estimate, while revenue of approximately $2.66 billion exceeded forecasts near $2.62 billion. Higher home prices helped offset fewer deliveries. Toll Brothers Beats Q3 Earnings and Revenue Estimates on Higher Pricing
• Positive Sentiment: Orders and capital returns provided additional support. Net signed contract value rose to $2.52 billion from $2.41 billion a year earlier, and Toll Brothers raised its fiscal 2026 share-repurchase projection to $700 million from $650 million. The company also reaffirmed its full-year guidance. Toll Brothers Reports FY 2026 Third Quarter Results
• Neutral Sentiment: Management characterized the market as challenging but highlighted relative resilience. Toll Brothers’ higher-end customer base may provide some insulation from elevated mortgage rates and broader housing weakness, although affordability remains a constraint. Fourth-quarter delivery guidance calls for 3,450 to 3,550 homes. Toll Brothers: Relatively Resilient to Rate Pressures
• Negative Sentiment: Year-over-year operating trends weakened. Home deliveries fell to 2,662 from 2,959, revenue declined 9.7%, and home-sales gross margin contracted to 23.9% from 25.6%. EPS also dropped from $3.73 a year earlier, reflecting pressure from incentives, affordability and the slower housing market. Some recent reports also noted insider selling, including sales by the CEO and other executives.

Analysts Set New Price Targets

A number of research firms have recently issued reports on TOL. BTIG Research started coverage on Toll Brothers in a report on Tuesday, June 9th. They issued a “buy” rating for the company. Citigroup raised Toll Brothers from a “neutral” rating to a “buy” rating and raised their price objective for the company from $146.00 to $176.00 in a report on Friday, July 10th. Royal Bank Of Canada restated an “outperform” rating and issued a $158.00 target price on shares of Toll Brothers in a research report on Thursday, June 11th. Barclays upped their target price on Toll Brothers from $115.00 to $122.00 and gave the stock an “underweight” rating in a research note on Tuesday, July 14th. Finally, Argus set a $170.00 price target on shares of Toll Brothers in a research report on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $164.88.

Insider Activity at Toll Brothers

In other news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $156.58, for a total value of $12,206,507.06. Following the transaction, the chairman owned 321,256 shares in the company, valued at approximately $50,302,264.48. This trade represents a 19.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Robert Parahus sold 7,500 shares of the stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $149.66, for a total transaction of $1,122,450.00. Following the sale, the chief operating officer directly owned 23,457 shares of the company’s stock, valued at $3,510,574.62. The trade was a 24.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.37% of the stock is owned by company insiders.

Institutional Trading of Toll Brothers

A number of institutional investors have recently modified their holdings of the company. Sivia Capital Partners LLC purchased a new position in shares of Toll Brothers during the second quarter valued at approximately $705,000. TMB Capital Partners LLC bought a new stake in Toll Brothers in the fourth quarter valued at $240,000. StoneX Group Inc. bought a new stake in Toll Brothers in the fourth quarter valued at $229,000. Syon Capital LLC purchased a new position in Toll Brothers during the 4th quarter valued at $216,000. Finally, EP Wealth Advisors LLC purchased a new position in Toll Brothers during the 2nd quarter valued at $215,000. 91.76% of the stock is currently owned by hedge funds and other institutional investors.

About Toll Brothers

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company’s core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.